tag:blogger.com,1999:blog-199439162011-04-21T14:39:25.578-05:00Jeremynoreply@blogger.comBlogger861100tag:blogger.com,1999:blog-19943916.post-1144687856866576652006-04-10T11:18:00.000-05:002006-05-20T05:20:01.473-05:00

I made a quick stop at the Silk Market in Beijing to pick up some gifts for colleagues back at the office (Pashmina shawls for $2.25). The Silk Market - formerly Silk Alley comprised of small shacks creating little alleys of knock offs - is in a shiny new building where you can buy pearls, clothing, silk items, electronics, and more. With a little bargaining, shoppers are picking up North Face

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1144685774635817222006-04-10T10:44:00.000-05:002006-05-20T05:20:08.076-05:00

Air pollution has been a major problem for China for many years. A decade ago the problem was people burning coal in their homes. Today, in most large cities the residents use electricity instead of coal and they use it not only for cooking and heating, but to power their TV, stereo, PC, appliances, and more. As a result, the coal burning has simply shifted to from millions of households to large

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1144683311617850492006-04-10T10:15:00.000-05:002006-05-20T05:20:09.416-05:00

For much of the past decade, China has been the world's manufacturer due in part to a large supply of very cheap labor. As the demand for Chinese labor has grown, however, the supply has not. In many of China's major manufacturing centers there are persistent labor shortages. According to the New York Times, "shortages at hundreds of Chinese factors have led experts to conclude that the economy

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1144681726075787142006-04-10T10:02:00.000-05:002006-05-20T05:20:04.766-05:00

Over the past few years there has been a lot of newsprint and political spin about the rise of the Chinese economy. By anyone's accounting, China's GDP has been growing rapidly and the standard of living, as measured by financial values, has increased markedly for urban residents in Eastern China. However, there are some clouds on the horizon...China's explosive growth has been fueled in large

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1144680764962495442006-04-10T09:40:00.000-05:002006-05-20T05:20:03.830-05:00

Welcome to the 17th Carnival of Investing, direct from China. The Carnival presents an opportunity for bloggers to share their best recent posts on investing. If you’re interested in contributing a post to the next carnival, you can use the form at Blog Carnival or Conservative Cat.Let me also welcome you to A Financial Revolution. The posts on this site discuss saving, investing, and spending

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1143942214921445922006-04-01T20:43:00.000-05:002006-05-08T10:14:30.283-05:00

For those of you that weren't able to take advantage of the free USB drive from Microsoft, LPL Financial Services is offering a free USB drive that contains a study showing why they're the number one independent broker/dealer. All you have to do for the drive is call (1) 866-523-8218 and ask for a free copy of the "Moss Adams study" and other information on a free memory stick.I haven't tried

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1143866111096520522006-03-31T23:28:00.000-05:002006-05-20T05:19:51.210-05:00

Have you ever played one of those claw games? You know the ones - you stick your dollar in the slot and get a dose of frustration as you navigate the little claw to your prize only to find the claw is too weak to actually hold the prize all the way to the chute. Well, this kid wasn't having any of that. Devin, a 3-year old Minnesota boy, climbed through the chute to his own personal playbox.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1143865013430184092006-03-31T23:04:00.000-05:002006-05-20T05:19:53.313-05:00

I learned last night that my China business trip has been extended an extra week (I usually only stay 2 to 3 days on a normal China trip.) Since I'll be there for two weeks, I thought I would try something a little different... I will report on my experiences in China. Stay tuned for the first report on Tuesday.On a different note, I've had several spam commenters over the last month or so.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1143817769071724192006-03-31T09:43:00.000-05:002006-05-20T05:19:53.853-05:00

In my last post I listed seven credit card trends. To follow up, here are seven benefits of credit cards (courtesy of TMF):Convenience - no need to carry around large sums of cash for those big purchases.Budgeting - each month you receive an itemized list of your expenditures.Boosting creditworthiness - building a good credit history makes you more attractive to lenders when it comes time to buy/

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1142737407343891462006-03-18T21:50:00.000-05:002006-05-20T05:19:58.760-05:00

MoneyCentral has a recent article about seven credit card trends that could cost you. The trends include:Interest rates will rise (there's a no brainer)Low-rate offers will include more conditions or "traps"Companies will offer some good deals, but end/modify the deals quicklyFees will growCredit card companies will continue to consolidate and, over time, reduce competitionMicropayments are the

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1142690295190198682006-03-18T08:19:00.000-05:002006-05-20T05:19:57.600-05:00

It's time to confess... I made a mistake last year. I tried a small experiment with the dogs of the Dow - investing in the six highest-yielding stocks in the Dow Jones Industrial Average and selling after one year. Historically, this approach bests the performance of the Dow by about 50%. The results for my holding period were not stellar - about a 0.5% gain after commissions.My mistake, however,

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1141707149299048352006-03-16T00:47:00.000-05:002006-05-20T05:19:57.946-05:00

The McKinsey Quarterly recently included a web-only article on ten trends for the coming years. I thought it would be worth reviewing these trends and looking to see if it yields any areas for possible investment.Trend 1: Economic activity will shift to new regions of the globe as Asia continues to grow.Investment ideas: Consumer companies with a strong presence in Asia and global REITs.Trend 2.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1142454618010779832006-03-15T15:24:00.000-05:002006-05-20T05:19:59.790-05:00

I was going through my email and noticed a sale announcement for Investment Advisor. They are having an online warehouse sale on finance and investing books. The shipping isn't great ($4 for the first item and $1.79 for each additional item), but some of the books are priced as low as $0.89.I have read and can recommend the following titles:10808: Smart Money Decisions ($1.14)84366: The

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1142436011950363612006-03-15T10:14:00.000-05:002006-05-20T05:19:58.903-05:00

Last weekend, I rented a car from Alamo. As usual, I requested an economy car - typically a Geo Metro-sized car. I am certainly not a frequent car renter, but of the past 7 to 9 rentals in which I requested an economy car, I have never received one. Why? Well, I don't believe they even own (m)any economy cars. When I get to the rental counter, the discussion usually goes something like this:Agent

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1142122538362311362006-03-11T18:55:00.000-05:002006-05-20T05:19:56.320-05:00

While we're on the topic of real estate, the Seattle Post-Intelligencer had an interesting article about a potential boom in foreclosures. According to the article, over the last two years, many borrowers have taken advantage of adjustable rate mortgages (ARMs) with super-low teaser rates (2.5% or less.) Because some lenders were offering no- to little-money-down loans and some real estate

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1142121291917750752006-03-11T18:50:00.000-05:002006-05-20T05:19:51.580-05:00

The NY Times had a very interesting article about investors buying houses over the Internet sight unseen and (surprise, surprise) getting burned. The article describes the case of two investors who bought three houses in Buffalo, NY for a total of $13,000. The investors believed the seller's statement that the houses needed only minor repairs (really?) You can probably guess that those statements

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1142111608740724702006-03-11T15:41:00.000-05:002006-05-20T05:19:52.690-05:00

Over the last few months I've seen numerous magazines and newspapers claiming that the U.S. real estate bubble is beginning to burst. At a minimum, the air is leaking out. U.S. homes are staying on the market longer and buyers are starting to regain their common sense.So what does this mean for real estate investment trusts? In January, I posted that REITs offer diversification because their

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141742164715194982006-03-07T08:28:00.000-05:002006-05-20T05:20:51.440-05:00

As I was exiting the Metro station this morning, I received a copy of the Financial Times with a note that the newspaper is providing free access at FT.com from March 5 to 11. The newspaper's business articles are usually top notch and it's a good place to find investing ideas. An extra feature: unlike the paper version, the background of the web site is white, not pink.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141702421106692552006-03-06T22:06:00.000-05:002006-05-20T05:19:50.690-05:00

First, Old Niu beats me to the punch with his posts about spin offs. Now the Washington Post got ahead of me on comparing tax preparation software.The article compares three popular tax packages: TaxCut, TurboTax, and TaxAct. Each of the packages provided different results - TaxCut calculated a return of $600, TurboTax: $588, and TaxAct: $175. So which package does the journalist recommend?

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141700790230072222006-03-06T21:59:00.000-05:002006-05-20T05:19:52.286-05:00

The Insurance Information Institute is offering free software to help you develop an inventory of your possessions. Using the software, you can organize your possessions by room and attach photos and electronic copies of receipts. I haven't personally used this software, but it looks simple to use and has all the important features. If you've used the software, please post a comment sharing your

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1141699893798266132006-03-06T21:09:00.000-05:002006-05-20T05:20:50.056-05:00

The carnivals are up again! Canadian Capitalist hosts the Carnival of Personal Finance. I recommend Old Niu's post about investing in spin off transactions. The funny thing is, I was planning to write a post on that tonight! Old Niu, thanks for saving me some time (and organizing my thoughts so coherently .)PFAdvice hosts the Carnival of Investing. Check out Stocks for Me's discussion about Home

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141533613513116392006-03-04T22:50:00.000-05:002006-05-20T05:20:51.786-05:00

Last week, the Washington Post reported that government officials are seeing a new IRS-themed email scam each week. Most of the scams involve an email advising that the recipient is under investigation or due a refund. The emails contain links that direct the recipient to a phony, IRS-look-a-like web site that asks for personal data.Five Cent Nickel dissected one of these scam emails several

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141400799645319382006-03-03T08:39:00.000-05:002006-05-15T16:57:02.776-05:00

There is a continual debate among bloggers and personal finance sites asking whether it's better to hold individual stocks or trust mutual fund managers with our money (see funds vs. stocks.) Often, those recommending mutual funds argue that funds have experienced money managers, proprietary research, and access to company insiders - things many of us lack - so it would be foolish to think that

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1141391091189883752006-03-03T07:44:00.000-05:002006-05-20T05:20:52.873-05:00

A Financial Revolution has joined the PFBlogs.Org network. PFBlogs is an aggregator with a deep bench of over 240 excellent personal finance and investing blogs. The site includes a search feature so you can check out which blogs have been talking about Joel Greenblatt's "magic formula".I encourage you to check them out. They're a great resource for readers interested in personal finance and

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1141387222550434552006-03-03T06:19:00.000-05:002006-06-05T16:39:38.906-05:00

Last night I finished Joel Greenblatt's new book, The Little Book That Beats the Market. It's a well-written, easy-to-understand, funny and short book that promotes a "magic formula" which has beat the market by a wide margin over the last 17 years. The simple formula identifies businesses that are well-run (high return on capital) and selling at a bargain (high earnings yield). According to the

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1141311705336259732006-03-02T06:54:00.000-05:002006-05-20T05:19:54.293-05:00

Microsoft wants to teach you about software licensing and they're willing to give you a free USB drive as part of the training. If you surf on over to their Mystery Solved page, you can register for a free USB drive (no info on size) that includes FAQs, a Windows licensing guide, product info, and other resources.After you diligently read all the materials on the drive, simply erase the files and

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1141184136441852392006-02-28T20:46:00.000-05:002006-05-20T05:19:47.866-05:00

In his book, You Can Be a Stock Market Genius, Joel Greenblatt reviews a number of special situations that provide opportunities for significant profit potential. Mr. Greenblatt also tackles the question that every stock investor asks - how many stocks do I need to own to have a well diversified portfolio?The objective of diversification is to reduce the portion of a portfolio's risk not

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1141143595727761382006-02-28T07:43:00.000-05:002006-05-20T05:19:50.390-05:00

There are some excellent posts on this week's carnivals. Money Blog Network hosts the Carnival of Personal Finance. I recommend the following posts:Will the AMT Affect You? (I got nailed by the AMT this year. Ouch!) Sorting Through the SOx Drawer makes it easy to understand why many small companies are "going private".Debit Cards - What's the Point? from A Financial Revolution.Retire at 30 hosts

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1140430294053314392006-02-20T04:59:00.010-05:002006-05-20T05:19:47.290-05:00

In about 20 minutes I'll be heading to the airport to catch a flight to Central America. I'll be "off the grid" for most of the week and unable to post.[Update: I'm back. Contest ended / details deleted.]

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1140424006004789232006-02-20T03:09:00.000-05:002006-03-16T11:57:58.433-05:00

Every month, the University of Michigan's Tozzi Financial Center compiles a list of 100 stocks that "can blow holes in your portfolio." The list is built by analyzing value, momentum, quality, predictability, and "other" factors. The list isn't always right on, but it has a good track record. If you own one of the stocks on the list, I would advise doing some additional due diligence.The Center's

Jeremynoreply@blogger.comtag:blogger.com,1999:blog-19943916.post-1140418753069541052006-02-20T01:30:00.000-05:002006-05-20T05:19:47.953-05:00

The Internet has brought us many great things (including A Financial Revolution ). One of the benefits of the Internet is the ability to research products and prices with a few keystrokes and clicks. Comparison sites like Price Grabber, Epinions, My Simon, and others allow consumers to read reviews from people that use the product or service and helps compare prices at leading (and lagging)

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1139979693061588562006-02-19T23:57:00.000-05:002006-02-20T03:02:21.363-05:00

About.com has an article about what makes a successful budget. Here are their top ten features of a successful budget:Categories that fit your personal situation and your spending habits, not somebody else's. Accurate income projections.Enough categories to give you a meaningful picture of where your money goes and where you might be able to cut costs, but not so much detail that tracking is a

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1140316714265175912006-02-18T21:12:00.000-05:002006-05-15T16:56:16.826-05:00

I recently read that debit cards are the fastest growing payment method. Why? I've never understood the allure of these "plastic checks." They look like a credit card, but, as the name implies, debit cards deduct the cost of a purchased directly from your checking account at the moment of sale. The cards benefit merchants (instant payments) and banks (processing fees), but I fail to see how they

Jeremynoreply@blogger.com11tag:blogger.com,1999:blog-19943916.post-1140142532032039052006-02-16T20:53:00.000-05:002006-03-03T11:12:17.656-05:00

A couple months ago I posted about opportunities in going private transactions. Erich left a comment that he was getting anxious because there wasn't much information on the status of the transaction. Well, after an email to my brokerage firm, I received the following response:...Thank you for your recent inquiry regarding Collins Industries. We will be submitting participation instructions on

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1139621580700114962006-02-15T02:26:00.000-05:002006-05-15T16:56:15.800-05:00

Welcome to the 178th Carnival of the Vanities at A Financial Revolution. Let me take a moment to thank Zuesswood at Harshly Mellow for managing the Carnival of the Vanities. I had a great time reading the posts and hope you enjoy them too.While you're here, feel free to explore A Financial Revolution. The most popular posts help you select the right cash-back credit card for you (details,

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1139866574133222742006-02-13T17:26:00.000-05:002006-02-13T17:19:12.120-05:00

Just as we pay off the holiday gifts charged on our credit cards (cash back cards, of course), along comes Valentine’s Day. Once again we are bombarded with advertisements, this time from jewelry, flower, card, and candy companies. The message is simple: if you love that special someone you should open your wallet and show it.But remember, Valentine’s Day is supposed to be about love. Free Money

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1139589620368078832006-02-10T10:55:00.000-05:002006-02-10T11:40:20.490-05:00

The earnings, interest, and gains statements have all come in; the advertisements and coupons for tax software are everywhere; and people are sharpening pencils all across the country. It must be tax season. As I prepare to calculate my 2005 taxes, I thought I'd share the important numbers for this year...Taxable Income RangeSingleMarried, Filing JointlyMarried, Filing SeparatelyTax Rate$0 -

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139468823718323622006-02-09T01:56:00.000-05:002006-02-09T02:07:03.733-05:00

Financial Revolution is hosting the Carnival of the Vanities on February 15. If you have a submission, use the form on Blog Carnival or Conservative Cat. I've had a chance to read the early entries and I can say that this promises to be another interesting Carnival. Bring in the clowns!

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139464416524086932006-02-09T00:38:00.000-05:002006-02-09T00:57:38.710-05:00

A study by Javelin Strategy & Research found that about half of identity theft is committed by someone the victim knows - friends, relatives, and neighbors. In addition, most ID theft is low tech.Most Common Sources of ID TheftLost or stolen wallet/purse28.8%Online surfing11.6%Acquaintance11.4%Brick and mortar merchants8.7%Employee8.7%Mail theft8.0%Dumpster diving2.6%

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139463478586466662006-02-09T00:24:00.000-05:002006-02-09T00:37:59.276-05:00

Money magazine has a steps to take for spotless credit. The list includes some very obvious items like paying your bills on time, but here's my short version of the list with a few items added in for good measure.Order your free credit report from AnnualCreditReport.com. Better yet, since you are entitled to one from each of the three credit bureas, order from one bureau every four

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139414107997739192006-02-08T06:54:00.000-05:002006-02-08T22:04:26.416-05:00

Ben Stein penned a recent article criticizing management at UAL, parent of United Airlines. Mr. Stein wrote: In the early 1990's, when some investment bankers were casting around for a way to make tens of millions of dollars, they came up with a doozy: the employees of UAL would give up some of their salaries and benefits in exchange for stock in UAL, eventually becoming UAL's largest owner

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1139162511647852182006-02-05T12:35:00.000-05:002006-02-09T00:08:16.356-05:00

Sound Money Tips has some helpful posts about using resources on the web to save money on travel costs. The posts I found most helpful include:Search multiple travel agents with the Kayak price engine.Learn from other travelers about recent successful Priceline bids at Bidding for Travel. This is particularly useful for hotels.I would also add the following sites:SmarterTravel consolidates the

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139151592619256622006-02-05T09:13:00.000-05:002006-02-05T09:59:56.596-05:00

For most people, the biggest purchase they make is their home. However, unlike some other assets it can be challenging to calculate the current value of a home. That's where the US Government can help. The Office of Federal Housing Enterprise Oversight maintains a house price index (HPI) for most metropolitan areas. The HPI is a weighted average of repeat sales, meaning that it measures average

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1139113644493206362006-02-04T21:50:00.000-05:002006-05-17T01:11:36.633-05:00

In last month's Journal of Financial Planning, Charles Farrell wrote about using personal financial ratio benchmarks for retirement planning. The author reasons that the benchmarks can be used to gauge whether or not you're on track to retire by 65. Alternatively, the numbers can be used to develop a retirement savings plan. The author introduces the concept this way:Just as stock ratios are

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1138982501204280792006-02-03T10:27:00.000-05:002006-02-03T11:01:45.433-05:00

Following my post about creating an UTMA/UGMA custodial account for a minor, Janet posted a good question: Once you've put money into a custodial account, can you transfer it to a 529 plan? The short answer is yes and no. Regardless of your state laws, one thing remains constant: placing money in an UTMA/UGMA account for a child is a completed, irrevocable gift. Although Janet may act as

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138768331754128102006-01-31T22:15:00.000-05:002006-02-01T01:06:12.316-05:00

Earlier this month I posted about boosting yields with preferred stocks and the diversification benefits of real estate investment trusts. I'd like to explore another tool for boosting returns – royalty trusts. Royalty trusts are not technically companies. They are legal structures – special-purpose financing vehicles – to hold assets for another company or shareholders. Generally, royalty trusts

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1138604774717248012006-01-30T01:57:00.000-05:002006-05-15T16:56:04.550-05:00

A post from last month compared the rebate percentages for eight popular cash back credit cards. The post included an Excel spreadsheet that calculated the cash back rebate for each card based on spending patterns. I’ve now created a JavaScript calculator to replace that spreadsheet. Simply enter your monthly charges and the percent of those charges that are Every Day Purchases (e.g., groceries,

Jeremynoreply@blogger.com4tag:blogger.com,1999:blog-19943916.post-1138488175008333522006-01-28T17:27:00.000-05:002006-01-28T17:42:55.986-05:00

MSN has an article about the top 10 investment scams. Here's the short version:Ponzi/pyramid schemes that promise huge returns, but only pay off the "investors" who got in early.Fake promissory notes from companies or that are little known or don't exist.Immoral financial managers that charge for services not provided or conduct unauthorized activities (e.g., frequently trading without permission

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138485182805371882006-01-28T16:52:00.000-05:002006-01-28T17:25:29.953-05:00

When developing a financial plan, whether it be investing in mutual funds, Exchange Traded Funds (ETFs), or individual stocks and bonds, it is important to think about the following eight factors:Financial Goal: What do you want to achieve?Risk Tolerance: How much risk are you willing to accept? Generally, the level of risk you are willing to assume affects the level of returns you can

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138288574488825852006-01-26T07:25:00.000-05:002006-01-26T10:16:14.630-05:00

During that exciting evening ritual of going through the stack of junk mail (there was a bank statement mixed in to make it interesting), I skimmed a letter offering insurance for my mortgage. The insurance would pay off my mortgage if I die and make payments if I'm disabled. Is this a good deal? Nope. I took a look at my paycheck and noticed my employer's life and disability insurance plans are

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138170006071765622006-01-25T01:15:00.000-05:002006-01-30T09:56:03.253-05:00

Following up on my analysis of JNJ, there were three important events today. First, JNJ reported mixed earnings for Q4. Compared to Q4 2004, earnings increased 9% but revenues decreased by 1%. For the year, earnings increased by 12% while revenues increased 6.7%. The decrease in Q4 revenues was due to currency effects (approximately 2% of revenues.) The consumer segment and medical devices

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138073577375287112006-01-23T22:16:00.000-05:002006-01-23T22:34:43.930-05:00

The February issue of Smart Money has an informative article about how a mutual fund’s turnover affects performance. Turnover represents the percentage of a fund’s investments that are sold each year. For example, a turnover rate of 84% – the average for large cap mutual funds – means that 84% of the stocks or other assets in the fund were sold during the previous year. A fund’s turnover rate can

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1138057217737849752006-01-23T17:35:00.000-05:002006-01-23T22:55:57.730-05:00

There are some excellent posts on this week's carnivals.Be Capitalism hosts the Carnival of Personal Finance. I recommend the posts from Boston Gal's Open Wallet, Political Calculations, and, of course, my post about Durable Power of Attorney.Blueprint for Financial Prosperity hosts the Carnival of Investing. Once again, there are a number of excellent posts. In particular, I liked the posts from

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137966017298793312006-01-22T16:24:00.000-05:002006-01-22T16:40:17.823-05:00

While we're on the subject of tax software and tax forms, the Federation of Tax Administors has links to tax forms for all 50 states (even states with non-income taxes.) As you would expect, federal forms are available on the IRS web site.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137881474571034092006-01-21T15:47:00.000-05:002006-01-27T13:56:37.840-05:00

H&R Block, TaxACT and the IRS are offering free standard-edition federal tax preparation software. In states with income taxes, use the data from the Federal return to prepare the state return manually.H&R Block TaxCut Standard - Federal edition only (the optional State add-on costs $24.99 - the price of TaxCut Deluxe + State.)TaxACT Standard - Federal edition only (the optional State add-on

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137822209617079832006-01-20T23:34:00.000-05:002006-01-25T01:25:21.763-05:00

BackgroundIf you have a toddler, you know the power of a Band-Aid. It appears that these are the body art of the under-5 crowd (can’t wait ‘til we get to the piercing stage!) Band-Aid is not Johnson & Johnson’s (JNJ) only stellar brand. When you think of JNJ, what brands come to mind? Johnson’s Baby Shampoo? Neutrogena? Aveeno? Tylenol? Would it surprise you to know that these powerhouse brands

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1137817022679218832006-01-20T23:09:00.000-05:002006-05-18T18:45:40.260-05:00

I haven't had much luck with free file host sites. I've created a number of tools and templates for myself and readers of A Financial Revolution. However, the first hosting site shut their doors and the second deleted the file after a couple weeks. I'm trying again with Badongo.I've updated the following tools/links:Cash back credit card comparison toolFinancial plan templates #1Financial plan

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137516212517165152006-01-17T11:28:00.000-05:002006-05-15T16:59:02.966-05:00

After a will and a living will/healthcare proxy, a durable power of attorney (DPA) is probably one of the most important documents every household should have. The DPA gives another person or institution the right to act on your behalf.The DPA comes in handy if you are incapacitated (e.g., an accident) and someone else must pay the bills or sign legal documents. Even if everything is held jointly

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1137515197753119062006-01-17T11:26:00.000-05:002006-01-17T11:26:55.546-05:00

Ibbotson and Associates recently published a study comparing two portfolios – one with 20% invested in Real Estate Investment Trusts (REITs) and one with no REITS. These are typically funds or individual stocks of companies that lease apartment or commercial office space. The study found that since 1972, the account with 20% invested in REITs increased annual returns by 0.7% compared to a

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137467533402134602006-01-16T22:09:00.000-05:002006-02-03T10:36:15.853-05:00

It’s once again time for that January ritual, funding our Roth IRAs and Coverdell Education Savings Accounts for the year. This started me thinking about a Uniform Gift / Transfers to Minors Act (UGMA / UTMA) custodial account. These accounts are owned by minors but managed by an adult custodian. One upside of a custodial account is that the gains from the account are taxed at the child’s rate.

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1137467325710603762006-01-15T23:33:00.000-05:002006-01-16T22:33:10.556-05:00

This month’s Money magazine has an interesting article about online profiles and their possible effect on job applications. The head of World Privacy Forum says that employers routinely Google job candidates and their findings can affect whether or not your hired.Information related to questions that employers cannot legally ask can be found on the Internet for all to see – information about

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137215227528447402006-01-14T00:10:00.000-05:002006-01-14T04:49:26.220-05:00

Charlie Munger is Warren Buffett's right-hand man. While he's largely remained out of the spotlight at Berkshire Hathaway, last year he co-authored "Poor Charlie's Almanack". It turns out, however, that most of the speeches presented in the book are available for free on the web.Chapter 2: A Lesson on Elementary, Worldly WisdomChapter 6: Investment Practices of Leading Charitable

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137212403473159022006-01-13T23:03:00.000-05:002006-01-13T23:22:28.730-05:00

I got back to the office this morning after a week-long trip to Europe and I noticed a couple faxes touting the latest investment in a company ready to "change the way we live." According to the faxes, investors in the company are poised to make a fortune.The faxes reminded me about Joshua Cyr's experiment. Joshua created a hypothetical portfolio of stocks touted in spam emails. The result: after

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1137211400789305002006-01-13T22:14:00.000-05:002006-01-13T23:03:21.213-05:00

Don't write checks on your fund account. Each time you write a check, you're selling shares in the fund and realizing a loss or gain that must be reported on your tax return.Don't trade frequently. Moving money from one fund to another creates a taxable transaction.Don't buy mutual funds in November or December. If you buy a fund before a fund distributes its capital gains, you will be taxed on

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136656425074094482006-01-07T12:49:00.000-05:002006-01-07T12:53:45.400-05:00

All Things Financial links to a nifty IRS tool to determine if you're subject to the AMT. You need to do a preliminary 1040 in order to use the tool.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136655420329847992006-01-07T12:32:00.000-05:002006-01-14T00:50:46.010-05:00

During the market meltdown in late 2000/early 2001, we started looking for alternative investments that would give us a more stable return. We decided to move about five percent of our portfolio from common stocks to preferred stocks. Preferreds generally pay a guaranteed, relatively high dividend, but the appreciation potential is limited. One of the preferreds we purchased was Royal Bank of

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136621294909163282006-01-07T03:00:00.000-05:002006-01-07T03:17:35.686-05:00

“If you don't know where you're going, you might wind up someplace else” - Yogi BerraThe next step in the financial process is to set financial goals. Defining goals is a key part of the strategic process – it offers something to dream about at night, and to work towards during the day. Unfortunately, we hadn’t given much thought to our specific financial goals. Sure we had a general idea of what

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136241804699167512006-01-02T17:41:00.000-05:002006-01-02T17:43:31.130-05:00

My Money Blog has a nice comparison of online banks, including opening bonuses.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136182477127733952006-01-02T00:03:00.000-05:002006-01-20T23:30:41.786-05:00

"You can't get where you want to go if you don't know where you are" - AnonymousThe second step in the financial planning process is evaluating our current financial picture. Without an understanding of the current situation, I couldn't assess what steps to take to meet the financial goals.Because I'm "detail oriented" with regard to entering transactions into Microsoft Money, this next step is

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1136177357670041452006-01-01T20:21:00.000-05:002006-01-20T23:24:23.470-05:00

As our family’s chief financial officer, I try to organize our records, balance the accounts, and employ our assets to maximize returns. And while my family has regular discussions about our finances, if something unexpected happens to me I want it to be easy for them or another family member to know exactly what financial accounts we have, where they are located, and how to access them.Key

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1135924257912784452005-12-31T01:29:00.000-05:002006-01-22T16:49:30.250-05:00

In a previous post about dividend reinvestment plans (DRIPs), I noted that my investing career started a little more than a decade ago. At that time, I invested in companies that I knew and with which I was a customer. Over time, I expanded my horizons and bought stock in companies with which I had no relation. Whether it’s luck, insight, or a combination of both, those purchases have helped me

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135893940688005612005-12-29T17:04:00.000-05:002006-05-15T16:56:06.070-05:00

For the past few years my wallet has been home to an American Express Blue Cash card (and a lot of lint.) I try to use the card whenever possible to take advantage of the 1.5% rebate (5% on everyday purchases including gas and groceries.) While I've had good luck with the card, some of my largest purchases have been at suppliers that don't take AmEx. As the commercial says, "you can get enough

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1135879186529293082005-12-29T12:21:00.000-05:002006-01-02T10:37:45.310-05:00

I usually shy away from making predictions, but I'm going to put one forward for the new year... I'll get more junk mail, and so will you. Did you order that nice cashmere sweater for Mom from LL Bean? Well both you and Mom will soon receive the next LL Bean catalog. How about that fruit basket you received from Harry and David. Long after the fruit is gone, you'll receive the H&D

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135318770039852492005-12-28T01:58:00.000-05:002005-12-28T01:59:33.000-05:00

Investopedia highlights ten tips to keep track of your investments. Here are some of the more useful tips:Read and keep all documents that you receive from your broker, mutual fund or investment adviser.Keep good notes of communications with your broker or adviser.Get all confirmations and account statements sent directly to you. If you don't get account statements or confirmations, follow

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135228743721262902005-12-28T00:25:00.000-05:002005-12-28T00:28:12.826-05:00

The US Census Bureau recently released the Statistical Abstract of the United States - 2006. The book provides a wealth of information about our lifestyles. The numbers can provide some possible ideas for investing. Here are a few interesting tidbits, but I leave the relevance to your portfolio for you to decide: In 2004, almost 698 million passengers boarded planes in the U.S., up from 666

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135718733029999562005-12-27T16:17:00.000-05:002005-12-27T20:06:33.180-05:00

This weeks carnivals are out. My very first post - my experience with dividend reinvestment plans - is mentioned in this week's Carnival of the Capitalists hosted by Multiple Mentality. The recent post about creative accounting is highlighted in this week's Carnival of Investing hosted by All Things Financial. And finally, my post about companies going private is featured in this week's Carnival

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135403875423517162005-12-24T23:22:00.000-05:002006-05-15T16:56:04.723-05:00

In the last five years we've seen several instances of illegal creative accounting - Enron, WorldCom, Tyco, Fannie Mae, Global Crossing, Adelphia, and the list goes on. I was fortunate to have either passed on or sold stock in Enron and Tyco before their implosion. I was not, however, so lucky with Fannie Mae. The signs of trouble brewing were there, but I and many others chose to ignore them.

Jeremynoreply@blogger.com2tag:blogger.com,1999:blog-19943916.post-1135370867886217462005-12-23T15:43:00.000-05:002005-12-29T23:39:01.386-05:00

While we're on the subject of taxes, Branden at Blueprint for Financial Security has a good explanation of selling losing stocks to offset winners.

Jeremynoreply@blogger.com1tag:blogger.com,1999:blog-19943916.post-1135371429631431842005-12-23T15:42:00.000-05:002005-12-23T22:39:33.223-05:00

IRS Publication 526 provides an explanation of when you can deduct various charitable contributions:You can deduct your contributions only in the year you actually make them in cash or other property (or in a succeeding carryover year). This applies whether you use the cash or an accrual method of accounting.Checks. A check that you mail to a charity is considered delivered on the date you mail

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135359951249796132005-12-23T12:18:00.000-05:002005-12-23T16:01:52.543-05:00

About this time every year, the personal finance magazines provide a number of tips on how to reduce your taxes. One of the tips that is often mentioned is donating appreciated assets. Basically, it works like this:You bought 100 shares of ABC Corp in 2004 for $15 each ($1,500). The stock is now at $20 ($2,000). If you were planning to make a contribution to a charity, you can simply transfer

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135221908631537932005-12-21T22:03:00.000-05:002005-12-22T12:24:29.630-05:00

Mutual funds are big business! E*Trade offers almost 6,000 different funds to its customers, Ameritrade more than 11,000. This leads to a logical question: with so many mutual funds to choose from, am I better off with a mutual fund or a portfolio of individual stocks? Unfortunately, there is no easy answer to that question. The answer will depend on a number of factors, including: Time

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1135183249802322702005-12-21T11:39:00.000-05:002005-12-21T11:40:50.133-05:00

Political Calculations has posted this week's Carnival of Personal Finance. My article about the power of dividend reinvestment plans is featured.

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1134976754495864192005-12-19T03:15:00.000-05:002005-12-19T10:35:51.036-05:00

I'm an Excel fanatic and alway appreciate finding interesting and useful spreadsheets. Professor Damodaran of NYU provides a wealth of information and tools for financial analysis. I particularly appreciate the spreadsheets section where Dr. D includes several spreadsheets to calculate a company's value.As my father used to say, "If it's free, I'll take three!"Categories: [Deals & Offers] [

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1134972608991492132005-12-18T23:45:00.000-05:002006-05-15T17:06:17.956-05:00

In 2002, following the Enron and WorldCom accounting scandals, Congress passed the Sarbanes-Oxley Act to renew investor confidence by improving corporate disclosure and financial reporting. One consequence of the Act was that some small companies found the added burden greater than the benefits of being a publicly-traded company. Thanks to the 1934 Securities Act, these companies can avoid the

Jeremynoreply@blogger.com3tag:blogger.com,1999:blog-19943916.post-1134857686433464742005-12-17T16:49:00.000-05:002005-12-18T22:28:34.793-05:00

FiveCentNickel has a post about an IRS phishing scheme in which a person/group from Italy sends a convincing-looking email alerting you to a new on-line service from the IRS to track the status of your tax refund. The problem of course is that it's a fake! If you go to the fake web site you are asked to provide your name, social security number and credit card info.As FCN points out, the timing

Jeremynoreply@blogger.com0tag:blogger.com,1999:blog-19943916.post-1134803082606530862005-12-17T02:02:00.000-05:002006-05-15T16:57:14.753-05:00

A little over a decade ago I made my first foray into investing in individual stocks. Those first investments were made through dividend reinvestment plans (DRIPs). A number of companies offer these plans to their shareholders. As the name implies, dividends paid by the company are automatically reinvested in more shares of the company's stock. Some companies even provide a discount on the new

Jeremynoreply@blogger.com2