A Plan for 2012 That You’ll Actually Follow

(from Carl Richard’s New York Times’ Bucks blog, 12/26/2011 – click here for the original post. Carl is a Certified Financial Planner in Park City, Utah. His sketches are archived on the Bucks blog and on his personal Web site, www.BehaviorGap.com.His new book The Behavior Gap, will be out in January.
For 2012, I have a challenge for you: make financial decisions on purpose. Too much of what we do is based on habits and assumptions instead of a thoughtful plan. During the next year, see what happens when you do [read more]
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Embracing Simplicity

Around the holidays, I find myself overcomplicating things.  From trying to find the perfect gifts and decorating the house just right, to making a spectacular meal consisting of recipes I’ve never tried.  Many times, this just ends up causing anxiety, and the end does not feel like it justifies the means.  Not because I have ungrateful friends or family, but because what is more important to them is the time spent together, not the hours spent preparing a “Martha Stewart” moment. The irony is that I am not practicing what I preach.  I often tell [read more]
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Is My Money Safe?

That’s the question a client asked me last week, after he watched Jon Corzine, former CEO of MF Global, testify to a Congressional committee about the $1.2 billion missing from MF Global client brokerage accounts. He wanted to know if his investment account at Fidelity was at risk. The MF Global collapse is similar to that of Lehman Brothers and Bear Stearns that occurred during 2008, when brokerage companies traded to make profits for themselves and made poor decisions that led to their undoing. During the same time we watched Bernie Madoff’s long- term Ponzi… [read more]
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My Headline: Headline Risk Is a Lame Excuse for Active Managers

(from Dan Solin’s Huffington Post blog, 12/6/2011 – click here for the original post) A recent blog on CNBC almost made you feel sorry for active managers It referenced a study by Bank of America Merrill Lynch which found that active managers were having “a rough year.” Only 23 percent of large-cap managers beat the S&P 500 index and only 27 percent topped the performance of the Russell 1000. There is a certain irony in the fact that Bank of America Merrill Lynch is the source of this information. The merger of these two mega… [read more]
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