This is the “Dog Ate My Homework” edition 🙂
I’ve been burning the candle at both ends lately, what with my job winding down (amazingly, it winds up before it winds down, having to train my replacements), a big vacation planned for August (while I still have money, a car, and a house — hehe), and 2 kids that are growing up way too fast…
So, like any good student (of life), when the chips are down, you missed your assignment, you’re in danger of failing an exam —
Actually, this week, I’m taking a pass. We’ve been talking about how to build wealth, how to brainstorm business ideas, and how to get started.
We’ll pick up on that next time around.
This week, I want to direct you to a post that one of my fellow Personal Finance bloggers, Lazy Man, wrote, entitled, “Wealth Creation: Is it a Myth?“
He postulates that wealth creation is a zero-sum game: Any time I make a dollar, somebody loses a dollar; thus, it’s a zero-sum game.
It’s an interesting concept. His post got a lot of people talking. Make sure you read the Comments for my take on the question, where I give the “functional” reason that wealth-creation is NOT a zero-sum game (Lazy Man mentioned it briefly in his post) — but absent banks, there may in fact be no wealth creation.
Check it out. Tell me what you think in the comments here.
Welcome to the April 22, 2009 edition of Kids and Money.
Nate Desmond presents Giveaway: Free TurboTax Online Premier Tax E-Filing posted at Debt-free Scholar.
KCLau presents 5 Ways To Take Charge Of Our Finances posted at KCLau’s Money Tips, saying, “Are we doing the right things when it comes to managing our finances? Ask yourself five questions to know if you’re on the right track.”
Frank Vertin presents Just Buy Index Funds Directly posted at NO LOAD INDEX FUND, saying, “Buying an S&P 500 index fund through an investment counselor can substantially increase your initial purchasing costs and and drive up your annual management expense fees. Unfortunately, the vast majority of individual investors buy mutual funds and ETFs through brokers and investment advisers. Rarely do financial advisors recommend that you buy index funds with low fees. This is because low cost, no load mutual funds do not pay them as well as loaded, high fee mutual funds.”
Larry Russell presents Most Individual Investors Are Poor Personal Portfolio Managers | Personal Investment Management posted at THE SKILLED INVESTOR Blog, saying, “Young investors should learn early about investment efficiency, and they will then know more than most of their parents do about wise investing. Investors more easily understand investment costs that are directly measurable, such as fees deducted on investment statements. However, many investors ignore or are unaware of the opportunity costs of their sub-optimal investment behaviors. Opportunity costs are usually much more difficult to measure directly, but these investment costs can be even higher than more visible investment fees.”
Walter W. Fouse presents 7 Ways to Pick the Best Noload Mutual Funds and ETFs posted at Best No Load Funds, saying, “The vast body of investment research studies show that there really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work.”
Richard M. Rothschild presents The Top 14 Low Cost Taxable United States Bond Mutual Funds (Low Minimum Deposit) posted at Bond Market Index Funds, saying, “The top 14 low cost taxable US fixed income funds with a $10,000 or lower initial deposit. Low investment management fees are very important with fixed income funds. Simply put, if you pay higher bond mutual fund fees, then these bond management expenses tend just to be a deadweight loss to you. When you pay more in bond mutual fund fees, you are just wasting your money.”
Ralph Jean-Paul presents Building Self-Discipline posted at Potential 2 Success, saying, “The most disciplined business people are usually the most organized, efficient and successful. They are also the people that make the most money. Learn to build self-discipline in your personal and professional life and see the difference it will make.”
Big Cajun Man presents Canadian Personal Finance Blog » Blog Archive » Advice for New Grads? posted at Canadian Personal Finance Blog, saying, “When your kids do finally graduate from college, make sure they keep this in mind.”
Mike Pastore presents Thinking of saving money for your childs college education? IRA or 529a plan? | Mikes Millions.com posted at Mikes Millions.com.
Buck Weber presents Search for Scholarships posted at THE BUCK LIST, saying, “It’s that time of the year again for high school seniors. Testing for the ACT & SAT, filling out the FAFSA, gathering and sending transcripts, college applications and letters of recommendation are all part of the annual hectic last few months of the high school experience.”
Madison presents Summer Jobs for Kids – Ideas for Summer Jobs for Kids posted at Kids and Money.
Verna Morris presents Five Experts Agree: You Need a TIPS ETF In Your Retirement Portfolio posted at ETFdb.
Jim DeSantis presents 3 Reasons That Can Cause Your Family Budget To Fail posted at Free Family Budgeting eBook from On Line Tribune, saying, “Money is the only tool you have to secure your future and the future of your family and to live a good life today. Unless you get spending under control and start treating your household like the goldmine it really is, you are destined to struggle financially for the rest of your life.”
Jeremy Ulmer presents How To Cold Call Effectively: What To Say First posted at Sales Coaching | Business Coaching | Life Coaching, saying, “never too early for kids to start learning some of these skills…to make money…”
Clair Schwan presents Money Management – Making and Retaining Wealth posted at Frugal Living Freedom, saying, “This article provides an overview of basic money management concepts with an eye toward accumulating wealth by being more responsible with it.”
Patrick @ Cash Money Life presents How Much Life Insurance Do You Need? posted at Cash Money Life, saying, “This is a question everyone should ask themselves – particularly if they have a family that relies upon their income.”
Silicon Valley Blogger presents Zecco vs TradeKing: Which Online Stock Brokerage Account To Choose? posted at The Digerati Life, saying, “Help your kids invest early by opening their first account with a solid online broker.”
Summer Munyon presents How To Find The Bottom Of The Real Estate Market posted at Tallahassee Real Estate Blog, saying, “If you want to know the beginning of the next phase of the market turn, just keep an eye on the green line in the graph below. You can visit this graph (updated twice per week) at The Market Bulletin.”
hall monitor presents Two Colts Neck High School students accused of counterfeiting money posted at DetentionSlip.org, saying, “To be filed in the “What NOT to do” column.”
That concludes this edition. Submit your blog article to the next edition of Kids and Money using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
The Bernard Madoff scandal is making the news again today. I haven’t written much about financial scandals, rip-offs, and white collar crime, so now’s as good a time as any, I suppose, to fill you in on a few things.
First off, let’s just say that Bernie Madoff is a jerk. He took people’s money in an elaborate Ponzi scheme and made off with BILLIONS. Gone are the days when MILLIONS of dollars ripped off will make the news circuit!
Madoff simply needs to be tried, sentenced, and forgetten about. “Investors” – you will NEVER get your money back.
I put “investors” in quotes because a lot of those folks weren’t investors. They were rich dreamers who wanted even more money than they already had.
They had an “In” to a supposedly too-good-to-be-true financial “system.”
If it’s “too good to be true,” it’s too good to be true! Run – don’t walk – away from stuff like this.
For as long as man has lived, there have been schemes concocted by shrewd, yet immoral and dispicable, people that seek to separate YOU from your MONEY.
The most famous, of course, was made famous by Italian immigrant, Charles Ponzi. He promised “investors” a 50 percent return on their money in a matter of days and he made good on his promise.
For a while.
He took new investor money and returned it, plus the 50 percent, to the gullible folks who gave Ponzi their money first. The last suckers got the shaft.
Of course, Ponzi went to jail and died poor. Just like Madoff ought to.
There are some lessons to be learned here.
One last thing: There are legal Ponzi schemes, the most notable of which is Social Security. Yes, you read that right. It’s a government-enacted program that is exactly a Ponzi scheme.
The reason that Social Security will go broke is that there are fewer and fewer “new investors” and the old investors want their guaranteed returns.
I’m not making any moral judgements here. In fact, I support Social Security. In its original fomulation, it was to be used as a social safety net that had more new investors than old. As long as that was the case, the system was sound and good.
But now that the demographics have turned upside down (many more collecting nowadays, not as many contributing, relatively speaking), the system is in peril.
Stay tuned for my solution to the Social Securty nightmare in a coming post. And don’t get me started on Medicare! It’s in a much more precarious state than Social Security ever will be, but you don’t hear much about it.
Money isn’t everything. It’s the only thing. Wait. That’s only for football.
Enjoy life. Spend time with your family.
Welcome to the March 2, 2009 edition of Kids and Money. It’s been a while since our last carnival, so this is a BIG ONE. I’ve tried to put the submissions into logical blocks for easier reading.
jim presents Ten Recession-Busting Money Tips for Young Professionals posted at Blueprint for Financial Prosperity.
Silicon Valley Blogger presents Lower Your Car Insurance Rates! How To Cut Insurance Premiums In Half posted at The Digerati Life, saying, “If you’ve got kids, driving safely and carefully is a must. And doing so will most likely lower your car insurance rates as well.”
Annette Berlin presents Printable Toys For Pre-Teens posted at Craft Stew, saying, “Older children get tired of toys fast. Rather than spending a small fortune to keep them constantly satisfied, let them create their own playthings from cardstock and a printer.”
Brian McKay presents CD Rates posted at MonitorBankRates.com, saying, “Finding a decent rate on a certificate of deposit account these days isn’t an easy thing to do. CD rates have been coming down so fast recently the average 12 month CD rate is nearing just 2.00%.”
The Shark Investor presents Strategies For Raising Funds: Borrow Your Way To Wealth posted at The Shark Investor, saying, “How and when to use loans for investing”
Len Penzo presents Using a Ledger to Teach Kids Money Management posted at Len Penzo . Com, saying, “Even kids as young as 6-years old can learn personal finance management skills via this simple bookkeeping plan.”
Jacquelyn presents The Wise Parent & Child Money Guide posted at WParent.com – Wise Parenting Guide, saying, “Give your child an introduction to the subject of money by reading this article together. This will give your child a general idea about money.”
Silicon Valley Blogger presents Best Cash Back Credit Cards: Your Rewards For Spending posted at The Digerati Life, saying, “Thank you!”
Finance Tips 101 presents Drowning In Debt? Bad Credit Loans May Need To Be Considered! posted at Finance Tips 101.
Astrid Lee presents Suze Orman posted at World Healing, saying, “Article on advice by Suze Orman, the popular TV adviser on personal finance and about how get out of debt. Article also contains video show where she talks about how to determine how much to give to charities…”
Finance Tips 101 presents Scholarship And Grant Information For Interested High School Graduates posted at Finance Tips 101.
The Smarter Wallet presents Student Loan Programs To Pay For My College Tuition Costs posted at The Smarter Wallet, saying, “Thanks!”
OnlineCollege presents Choosing a College: A Simple Guide for Undergraduates posted at Universities and Colleges.
Preparing for Baby
Madison presents Our Family is Expanding… Financial Resources for Babies posted at My Dollar Plan.
The Smarter Wallet presents Will The Obama Economic Stimulus Check and 2009 Stimulus Plan Save The Economy? posted at The Smarter Wallet, saying, “How will your family be affected by the stimulus bill?”
Brian McKay presents What’s in the Stimulus Bill for You? posted at MonitorBankRates.com, saying, “We have listed all the benefits for individuals in President Obama’s stimulus bill that was just passed.”
Ella Moss presents New Economy, or Buy American, Stupid! « Zodiac Times posted at Zodiac Times, saying, “So, the new stimulus package is passed, hopes are up, markets are down, and recession deepens. Everyone is blaming the housing market, unscrupulous bankers and inept previous administration. But very few seem to understand the true roots of our woes, and how deep our economic problems go.”
Money Tipper presents Bring Proof of Age When Flying With Young Children posted at Money Tipper.
Finance Tips 101 presents Alarming Identity Theft Statistics Are Cause For Concern posted at Finance Tips 101.
That concludes this edition. Submit your blog article to the next edition of Kids and Money using our carnival submission form.
Past posts and future hosts can be found on our blog carnival index page.
I just bought an Epson Artisan 800 All-In-One printer. This thing is totally cool. Wireless. Networked Ethernet. OR USB. High quality photo-realistic printing as well as an ADF tray. Scans, faxes, copies, prints. Brushes your teeth. If you’re really nice.
Now, I see that the Silicon Valley Blogger, over at The Digerati Life, is giving away an Epson Workforce 600!
Sheesh. Guess if I win I can auction one off on eBay…
Anyhow, go check out how you can enter the contest.
Money isn’t everything. It’s the only thing. Wait. That’s only for football.
Enjoy life. Spend time with your family.