When Uncle Sam’s income (i.e. tax revenue) is less than his spending he runs a budget deficit. The Treasury Department sells Bills, Notes and Bonds (i.e. “Treasuries”) to cover the shortfall. Who are the buyers? Who enables the federal credit card? Historically the gap was filled from overseas. Individuals would buy Treasuries due to [...]
It’s easy to form habits. Some are good like brushing our teeth or exercising. Some not so much like smoking or being rude to others. To counteract habits we have to be break patterns - be deliberate and change how we think for how we view what is happening around us is arguably more important [...]
So here we are again. Loathe to comment for fear of legitimizing a non-event yet silence brings accusations of laxity. Woe is us! By now we’re all aware of a two-day slide that knocked 1,300 points off the Dow. Big Media loves it. Article after article. Talking head after talking head. Lots of folks rewriting [...]
According to the Social Security Administration next year’s benefits will increase by 2.8% as the average recipient will see his/her benefit increase by $39/mo. Similarly the maximum Social Security tax will increase by $279 as the “wage base” or the amount of earnings subject to the 6.2% tax will jump from $128,400 in 2018 to [...]
The prevailing narrative is that the Trump tax cuts (which cut the corporate rate from 35% to 21%) have been a boon for shareholders. Companies flush with cash have showered riches on their shareholders through increased dividends and stock repurchases. Is this true? Maybe. In dollar terms it’s certainly true. Spending by S&P 500 companies [...]
A new law allows people to freeze their credit at no cost. Freezing credit prevents lenders from accessing a person's credit report. Since pulling credit is a key part of the approval process for credit cards, mortgages, car loans and the like a freeze can be an effective measure against fraud. Freezing credit is easy: [...]
The problem with humans is that, well, we're human. It means we're subject to making decisions not in our best interest. We're easily distracted and excitable. We want to believe what we're told. It's a recipe for disaster. The purpose of insurance is to protect against something. Own a car? Great. Buy insurance in case [...]
A moral will is an attempt to transfer an intangible legacy – a heartfelt expression of what truly matters most in a person’s life. It is designed to let heirs better understand the values, principles, beliefs and life lessons that inspired and motivated the giver. Here are some things to know when considering drafting one: [...]
There was a time when classification was simple. Coca-Cola sells discretionary consumer goods. J&J is a health care company. Pretty straightforward, right? But what about Comcast? Is it a telecommunications company? Media? Information technology? Semantics to some. Important to others – particularly the investment community insofar as comparisons to benchmarks, diversification, etc require specificity. To [...]
The problem with bulls? It's the bulls**t! Be careful where you step. Now that the fiduciary rule is dead Merrill Lynch has confirmed it's business as usual. Customers be damned. Best interest? Forget about it. When it appeared regulators would require a fiduciary obligation Merrill jumped at the chance to be head cheerleader. See here, [...]