October 2008 Newsletter
The Economy
by Guy Baker
Maybe a hermit, living in isolation in the desert or a high mountain top would be oblivious to the economic chaos and ongoing stream of negative economic news. But for the rest of us, watching the sideshow in Washington this past week was great theater and a bit like riding a huge roller coaster. Whether we call it a "bailout" or a "rescue," the fact remains, the legislation passed by Congress . . . -READ More-
How Government Stoked the Mania
By RUSSELL ROBERTS
OPINION OCTOBER 3, 2008
Housing prices would never have risen so high without multiple Washington mistakes.
Many believe that wild greed and market failure led us into this sorry mess. According to that narrative, investors in search of higher yields bought novel securities that bundled loans made to high-risk borrowers. Banks issued these loans because they could sell them to hungry investors. It was a giant Ponzi scheme that only worked as long as . . . -READ MORE-
"Burn the Boats!"
from New Contributor Bob Bernatz
Have you ever questioned your commitment to a loved one, your profession, your faith or a lifelong goal?
Have you created a situation where you have one foot out the door, just in case things don't work out? Or, maybe you just want to keep your options open for a better alternative.
This seemingly prudent and reasonable position of keeping one foot in and one foot out may actually be a recipe for failure in both scenarios. Here's why.
. . . -READ MORE-How to deal with scary stock markets and turbulent times
The turbulence that has rocked the financial markets over the last several weeks has worried ordinary investors and left them wondering what, if anything, to do.
Major investment and insurance companies are in trouble or bankrupt and each day has brought a new headline warning of a . . . -READ MORE-
Is this a ‘lost decade’ for investors?
From the start of 2000 through August the average annual return of the Standard & Poor’s 500 Index has been only 0.13 percent per year.
Not since the Great Depression of the 1930s has a decade’s returns been so bad.
Following the Crash of 1929, returns in the 1930s were virtually nothing, despite years when the market climbed as much as 54 percent and fell by as much as 43 percent.
Long-term investors can withstand . . . -READ More-
Borrowing from homes in good times will hurt retirement income
A significant portion of the Baby Boom generation is going to head into retirement with a large decline in their net worth due to excessive borrowing against home equity, a new study says.
What is the safe withdrawal rate for retirees living off portfolios?
One of the most perplexing problems when planning for retirement is figuring out how much can safely be withdrawn from an investment portfolio for spending.
Withdraw too much and a retiree risks running out of money before death.
Withdraw too little and the retiree may crimp his lifestyle but end up leaving substantial wealth
. . . -READ MORE-