Moneysmartz Personal Finance Guide and Blog

Investing Education Update

Sun, 08 Jun 2008 18:38:55 -0600

How much investing knowledge is enough? For some, visiting a financial portal every year is too much, while for others, complete immersion in CNNMoney, The Wall Street Journal, and all forms of investing information is not enough. The obvious answer is that your level of investing knowledge depends on your personal situation and interests. With increasing market complexity and volatility, and so much of your net worth depending on smart investment decisions, it's difficult to argue against spending some of your free time learning more about investing. The Moneysmartz Investing Education guide offers a list of free and for-fee investing education resources covering the full-spectrum of investing education needs. To view listings from leading providers of investment education, visit the Moneysmartz Investment Education guide.

Day Trading Update

Tue, 13 May 2008 15:50:26 -0600

The recently updated Moneysmartz Day Trading page, designed to highlight the risk of day trading, includes two cautionary listings from the U.S. Securities and Exchange Commission ("SEC"). According to the SEC, "Day trading is extremely risky and can result in substantial financial losses in a very short period of time." If you still have the stomach for day trading after visiting the SEC listings, then go to the Wikipedia and Investopedia listings to learn even more about day trading, including trading strategies for beginners.

Foreclosures Update

Mon, 12 May 2008 14:18:23 -0600

The recently created Moneysmartz Foreclosures page offers tips, advice, and solutions to consumers facing the nightmare of foreclosure. For links to agencies and organizations offering consumer assistance, visit the Federal Reserve Education foreclosure page, a Moneysmartz Editor Best Bet. When using Google to find foreclosure information, beware of the numerous foreclosure listing sites targeting real estate investors, as many offer little useful information for consumers facing foreclosure. If you are a real estate investor looking for local foreclosures, then try RealtyTrac, the self-proclaimed "#1 source of foreclosure listings." For ways to avoid foreclosures, look to About Home Buying, with links to how foreclosures work and ways to stop foreclosures.

Warren Buffett

Fri, 02 May 2008 05:47:36 -0600

Staid, steady, and low-key, not the ingredients to attract over 30,000 admirers to Nebraska on a blustery May weekend. However, for many, Berkshire Hathaway's annual meeting, and its star attraction, Warren Buffett, have enough sparks to sizzle an Omaha steak without a grill.

The newly created Moneysmartz Warren Buffett category includes quotes, letters, and insight into the wit and undeniable wisdom of Warren Buffett.

For entertaining and useful investment insight, be sure to visit the link to Berkshire Hathaway Inc. shareholder letters. To learn about how the "Oracle of Omaha" does it, visit the Investopedia Editor Best Bet.

Even if you won't be making a pilgrimage to the "Woodstock of capitalism" this weekend, don't miss the chance to learn from the master by visiting a link or two at the Moneysmartz Warren Buffett page.

Major Company Information Update

Mon, 28 Apr 2008 06:11:17 -0600

Information is power, but too much information can be overwhelming. The secret to do-it-yourself company investment research is to find the most reliable and relevant sources of free information.

The recently updated Moneysmartz Major Company Information category provides links to market research leaders offering both free and for-fee resources to help you get under the hood of potential equity investments.

A great place to start and meet most of your research needs is Yahoo! Finance. Once on the site, enter the ticker symbol of your target company or do a search to find their ticker symbol, and click "get quotes." For example, here's what you will find after entering GE. The Yahoo! Finance GE page includes charts, quotes, news and information, company information, analyst coverage, ownership, and financial information.

Visit the Securities Exchange Commission Edgar database for free access to financial and related filings by public companies. Stock pickers can roll up their sleeves and dig into the SEC information.

Finally, if you prefer a short and sweet synopsis of your favorite company, then visit the Portfolio.com link.

Once you browse through the Moneysmartz Major Company Information category, you will be prepared to turn your information into power and better investment returns.

Commodities and Futures Investing Update

Sun, 27 Apr 2008 05:43:53 -0600

Commodity volatility is on the rise. Visit your local gas station or try buying rice in bulk and you will see evidence of soaring commodity prices. Should you add commodity futures trading to your investment arsenal?

The answer for most investors is a strong and simple no, but for a select few, those with the means, perspective, and training, trading commodity futures is a risky, but viable, investment alternative.

The updated Moneysmartz Commodities and Futures Investing category offers an introduction to commodity futures, including general information, news and market information, and places to start trading.

The Moneysmartz Editor recommends visiting Lind Waldock, an online trading brokerage with everything you need to learn, practice trading risk-free, and trade with your own money. If you are looking for more information, then visit the CNNMoney commodity markets page and Reality Based Trading for a commodity futures primer.

Since the rising and falling cost of commodities should continue to dominate the news, it is a great time to at least learn more about commodity futures and the potential of futures trading in your investment strategy.

Brokerages Update

Sat, 26 Apr 2008 05:49:24 -0600

Brokerages, and the brokers who work for them, bring buyers and sellers of securities together, and receive a commission for facilitating the sale. Unlike the old days, a trade, or sale, does not require person-to-person interaction. So, not surprisingly, technology is becoming increasingly important, and the distinctions between brokerage firms are blurring.

The updated Moneysmartz Brokerages category includes the major classes of brokerage firms, including "Premium," "Full-Service," and "Discount Brokers." To help differentiate between brokerage firms, visit the SmartMoney Editor Best Best for brokerage rankings. If you need more information about your personal broker, visit FINRA's BrokerCheck to learn more about the background of your investment professional.

If you are averse to technology, or just feel more comfortable working with an individual instead of a computer, most brokerages offer hands-on trading assistance, both on the phone or in person with a local investment professional.

One final note, to get the best per trade rates, embrace technology and learn how to make your trades online, without human assistance.

Bonds Update

Fri, 25 Apr 2008 06:00:07 -0600

Boring, vanilla, and without sex appeal, bonds are an important weapon in your personal investment arsenal. Bonds come in many forms with the most basic representing a loan from the investor to an issuer in exchange for a stream of payments and repayment of the loan. Bonds offer inflation protection and help diversity a portfolio, particularly if you are seeking income over a fixed period. As experienced bond investors know, the variety of bonds, including issuers and denominations, is vast.

The updated Moneysmartz Bonds category offers primers, market news, rates, and insight to help you understand bonds and incorporate them into your personal investment strategy. For a thorough introduction to bonds, visit the Investopedia Bond Basics Editor Best Bet. The SmartMoney and Motley Fool Editor Best Bets link to bond investing tools and strategies. Finally, TreasuryDirect, another Editor Best Bet, offers information and a way to buy bonds directly from the U.S. Treasury

While not flashy, bonds can play a substantial role in your investment portfolio.

Asset Allocation Update

Thu, 24 Apr 2008 05:56:47 -0600

The experts say that asset allocation, defined as how you distribute your investments among asset classes like stocks and bonds, is the single most important factor in determining investing returns. According to Investopedia, the experts also say, "your selection of individual securities is secondary to the way you allocate your investment in stocks, bonds, and cash and equivalents, which will be the principal determinants of your investment results." Given this sage advice, asset allocation deserves at least a portion of your financial planning attention.

The newly created Moneysmartz Asset Allocation category offers calculators, tools, and strategies to help you understand and exploit the power of asset allocation. For a brief and easy to understand introduction to asset allocation, visit the Securities and Exchange Commission beginners' guide to asset allocation Editor Best Bet. Use the Financial Planning Toolkit asset allocator Editor Best Bet to determine your personal asset allocation strategy. Before implementing this strategy, consider talking with a professional for additional guidance and perspective.

Understanding and implementing asset allocation won't guarantee stellar investment performance, but you will improve your odds for better returns from your investments.

Going Green Update

Tue, 22 Apr 2008 06:18:49 -0600

If you think it's too much effort to fill your recycle container with paper, plastic, and cans, then stop reading. If you already recycle, even reluctantly, then keep reading. Going green requires some effort and a little pain, but the upside can be big, for both your financial situation and the environment. The newly created Moneysmartz Going Green category is all about helping your green transformation put real dollars in your pocket. The best place to start is your home, so be sure to visit Energy Star, an Editor Best Bet, and a place where you learn about how to save money and protect the environment through energy efficient products and practices. Another Editor Best Bet, Frugalist, offers tips, tools, and tutorials to help you save a "boatload of money." The Moneysmartz Going Green category also includes information about socially responsible investments, tools to help you measure your ecological footprint, and a lot more help saving money. If you are still reading, then take the time to learn a little more and do even more good for yourself and the environment.

Assessing Your Financial Situation

Mon, 21 Apr 2008 08:37:43 -0600

You cannot determine where you will be tomorrow if you don't know where you are today. These are simple words, but powerful advice if you want to begin saving and preparing for your future. The newly created Moneysmartz Financial Situation category will help you determine where you are financially today. Assessing your financial situation comes in many colors and flavors, but essentially boils down to determining your cash flow, income coming in less expenses going out, and your net worth, your assets, including investments less you liabilities, like credit card bills. The great news is that the Web offers do-it-yourself calculators and tools to make your job a lot easier. Be sure to visit the category Best Bets, including Mint.com, to create a budget, and NetWorthIQ, to track your net worth. If you prefer pencil and paper, then visit the About.com Financial Planning picks for worksheets. Once you determine where you are today, it won't take long to start achieving your long-term goals.

Investment Objectives Update

Fri, 18 Apr 2008 06:11:55 -0600

Risk tolerance and investment objectives go hand-in-hand and determine where you invest your money. InvestorWords.com defines an investment objective as "the result desired by an investor or mutual fund, such as current income or capital appreciation." Wachovia identifies four broad investment objectives including income, growth and income, growth, and speculation. The recently created Moneysmartz Investment Objectives category elaborates on these concepts and provides guidance to help you determine your personal investment strategy. For an understanding of the link between investment objectives and risk tolerance, visit the Wachovia listing. The About.com Stocks listing explains how investment objectives define investment strategy. The category is short on listings, only four, but long on insight.

Stagflation Update

Thu, 17 Apr 2008 05:56:41 -0600

Investopedia defines Stagflation as "a condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation." Given the recent drumbeat of negative economic news, it is not a surprise that 'stagflation' has suddenly become a hot topic with depressing implications for your economic well-being.

The newly created Moneysmartz Stagflation category will help you understand the meaning of stagflation and find new ways to manage your investments during turbulent economic times. Be sure to visit the National Public Radio listing with a link to a thirty-minute podcast on the meaning of 'stagflation' to you. The Morningstar and Seeking Alpha listings offer 'stagflation' investing tips.

A final word as you prepare for the worst. Media references to impending 'stagflation' have been frequent since 2003. So, as you evaluate your investment strategy through the prism of stagflation, seek professional advice and use caution.

Risk Tolerance Update

Tue, 15 Apr 2008 07:02:35 -0600

The market is crashing. What will you do with your investments? Your risk tolerance, defined by Investopedia as "the degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio," largely determines your reaction. Equally important, risk tolerance, in addition to your investment objectives and experience, time horizon, and financial situation, should play a critical role in how you allocate your investment assets. The newly created Moneysmartz Risk Tolerance category includes links to online tests to help you determine your risk tolerance and articles to help you understand how risk tolerance relates to asset allocation. Be sure to visit the Wikipedia Stock Market Crash listing to learn about situations that are sure to test even the most risk tolerant.

Financial Goal Setting Update

Sat, 29 Mar 2008 10:20:49 -0600

The foundation of a successful financial plan is an understanding of where you want to be financially in both the short and long run. The Moneysmartz Financial Goal Setting category provides links to tools and worksheets to help you set financial goals. If you have at least one half hour, visit the About Frugal Living listing that provides systematic directions for determining financial goals. For a quick introduction to financial goal setting and helpful financial calculators, visit the Financial Goal Setting listing from CCH Finance. If you plan to manage your finances on your own or work with a financial professional, a review of financial goal setting basics will help lay the groundwork for financial success.