Tag Archives: Poor

Fees, Poor Choices Corroding Pension Pots-Study

Failure to shop around for pension and annuity deals will deprive some Britons of up to a quarter of the income they could have secured in retirement, forcing them to work longer, a report released on Thursday shows.
NYT > Retirement

5 steps to prevent boomers’ poor health from bankrupting America

Here are five solutions to a potential health care train wreck

Latest Retirement Headlines – CBS News

Friday the 13th + Downgrades + Poor Earnings = Wall Street Loss

Market Summary Well no surprise here, Friday the 13th brought Wall Street its first losing session of the week. Wide spread EU credit downgrades halted 2012 gains, while JPMorgan Chase & Co (JPM)…



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Will Sleep Really Make You Poor?

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You know the verse from Proverbs, a little sleep, a little slumber, a little folding of the hands to rest – and poverty will come on you like a bandit and scarcity like an armed man…  But did you know that it’s actually recorded twice in the book of Proverbs?  The same exact verse is found in Proverbs 6:10-11 and Proverbs 24:33-34.

I find it fascinating that Solomon would record it twice, but it makes sense why he would.  If you read the verses around the phrase in both chapters, you’ll see that he’s emphasizing two different, but equally important issues: procrastination and laziness.

I’m guilty of it and I’m sure you can relate when I say that sometimes I let procrastination get the best of me.  It doesn’t happen all the time, but it sure is easy to spot, especially if the same task keeps ending up on my to do list time after time, after time.

So back to sleep…why would Solomon make a direct reference to sleep?  It’s because we’ve all been given the same amount of time every day.  The farmer, doctor, student, CEO and musician all have the same amount of time each day: 24 hours.  How they use that time will shape the degree of expertise in their field.  If they want to sleep in everyday and take an afternoon nap, they have the right to do that.  But, it will probably mean that the farmer won’t take advantage of the sunlight to tend to his crops.  Or the student might not find enough time to finish a project if he chooses to nap each afternoon.  So the bottom line to both of these verses is one thing: time.  You can choose to spend your time sleeping or folding your hands and resting (yes, I’d compare this to sitting and watching TV) or you can take action, like Solomon suggests.

Remember I said that Solomon included each phrase twice?  He gives us actionable advice from these passages on how to conquer procrastination and laziness – here’s what we can take from these passages.

Why Do Investors Accept Poor Mutual Fund Performance?

Keeping on the same theme of the month, mutual fund performance, I wanted to address a question some of you have been asking.  Namely, “Why would anyone accept poor mutual fund performance if they don’t have to do so?”.  It comes down to four, key reasons:

  • Not knowing what a mutual fund is
  • Not knowing which types of investments a mutual fund owns
  • Not knowing the benchmark to which to compare a mutual fund
  • Not knowing there are less expensive mutual fund options

A completely inexperienced investor who can’t tell you the difference between a dividend and debenture is going to be lost when it comes time to put together a portfolio of high quality mutual funds.  That is why it is so vital to educate yourself.

To help expand on these mistakes, I wrote a new article called Top 4 Reasons Investors Accept Poor Mutual Fund Performance.  Why am I so passionate about the topic?  Because every penny you give up to banks, brokers, and other expenses is not a penny lost.  It’s more than that.  You also lose all of the pennies, nickels, dimes, quarters, and dollars that the penny could have produced if invested long enough and allowed to compound.

Do yourself a favor, take a few moments to sit back in your chair, read the article, and educate yourself.  Your pocket book, and your family, deserve better than to give your hard earned money to strategies or funds that don’t deserve your business.

Note: To save you from writing and asking, a dividend is when a company sends out part of its profit to the owners, the stockholders.  A debenture is a word used to describe when a company borrows money from savers by issuing bonds, but those bonds aren’t backed by specific assets, only by the good faith and credit of the corporation.  In contrast, a first mortgage bond on, say, a skyscraper would mean the bonds were collateralized by the building itself and no other creditor could come in and take the building from the bondholders.