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Investing Tips

The Ethical Investor: Wall Street Ripoff #10 - Recommending Products With Enormous Sales Commissions

John R. Talbott | Posted 01.09.2013 | Money
John R. Talbott

If a financial product is too complicated and too complex for you to understand, this is not an accident. It is intentional. And it will cost you.

The Ethical Investor: Wall Street Ripoff #9 - Convincing You That Their Bank Is Stable and Safe

John R. Talbott | Posted 12.26.2012 | Money
John R. Talbott

There is no reason to assume the big banks will be around in the long run. Therefore, do not take comfort that your money is safe with them. If you have less than $250,000 in an FDIC insured deposit account, then at least you have the US standing behind the claim. But, otherwise, beware.

The Ethical Investor: Wall Street Ripoff #8 - Lying About Their Products

John R. Talbott | Posted 12.19.2012 | Money
John R. Talbott

I believe the entire field of financial advice is badly broken and encourages lying. You would like your broker to have your best interests at heart, but in a system where they are rewarded for selling you things you may not need, lying is, if not encouraged, certainly overlooked.

The Ethical Investor: Wall Street Ripoff #7 - In the Long Run, Equities Outperform Bonds

John R. Talbott | Posted 12.12.2012 | Money
John R. Talbott

Investors have been lulled to sleep by the lullaby song of stockbrokers and bankers who croon that bonds are safe and that equities always outperform bonds in the long run. Wake up before another nightmare market crash shakes you violently from your peaceful slumber.

The Ethical Investor: Wall Street Ripoff #6 - Telling You That Bonds Are Safer Than Equities

John R. Talbott | Posted 12.05.2012 | Money
John R. Talbott

As I said in my last post, when investing clients tell their stockbrokers that they want to minimize their risk to world events, brokers typically suggest that they increase their holdings of bonds and decrease their common stock holdings. In today's world, this is terribly misguided advice.

Is There Love in the Air for Your Financial Advisor?

Ike Ikokwu | Posted 12.03.2012 | Money
Ike Ikokwu

By no means should people frivolously, haphazardly and carelessly pick a financial advisor. But there's no denying the intrigue of this potentially groundbreaking concept.

The Ethical Investor: Wall Street Ripoff #5 - Convincing You That Money Markets Are the Same As Cash

John R. Talbott | Posted 11.28.2012 | Money
John R. Talbott

If you want to hold cash, make sure it is held as cash in either currency or a very liquid guaranteed instrument like an FDIC guaranteed bank CD. Don't take your broker's word for it, make him show you the documents.

The Ethical Investor: Wall Street Ripoff #4 -- Turning You Into a Passive Investor

John R. Talbott | Posted 11.21.2012 | Money
John R. Talbott

Completely passive investing in which investors hold a very broad diversified mutual fund or index fund, and hold it forever under a buy and hold strategy creates its own unique set of problems for the individual investor and for the market in general.

Shoes, Priorities And Economics

Ike Ikokwu | Posted 11.12.2012 | Black Voices
Ike Ikokwu

While some may look at the booming sales of such an extravagant item as a sign of a recovering economy, I caution that optimism. How many customers are on food stamps, welfare, or unemployment?

The Ethical Investor: Wall Street Ripoff #2 - Encouraging Too Much Diversification

John R. Talbott | Posted 11.07.2012 | Money
John R. Talbott

Investors have been sold a very big lie over the years, that greater diversification always leads to higher risk adjusted returns.

Social Insecurity -- Your Investment Is No Retirement Plan

Ike Ikokwu | Posted 11.05.2012 | Money
Ike Ikokwu

My advice, at least for those of us still in the workforce, is this: If you're planning on Social Security to be your main retirement income, don't.

The Ethical Investor: Wall Street Ripoff #1 - Providing Nominal Returns, Not Real Returns

John R. Talbott | Posted 10.30.2012 | Money
John R. Talbott

In speaking with my financial advisory clients, I find the most misunderstood concept is the difference between nominal returns and real returns. And Wall Street brokers and bankers are very quick to take advantage of this situation.

8 Tips to Avoid Investing in a Ponzi Scheme

Ike Ikokwu | Posted 10.28.2012 | Money
Ike Ikokwu

Whether it's one million or ten million, people will still fall prey to these schemes until they pay attention to some basic rules of thumb to help you avoid them.

The Ethical Investor: 20 Ways Wall Street Is Ripping You Off

John R. Talbott | Posted 10.24.2012 | Money
John R. Talbott

This is the first in a new series on personal finance. Each Friday morning I will be exploring ways for you to become better investors. We begin with the first installment that is a list of the 20 ways Wall Street is ripping off small investors like yourself.

Facebook: Great Social Platform... Bad Investment

Ike Ikokwu | Posted 10.21.2012 | Money
Ike Ikokwu

So while Facebook was once a great social media platform, both individual and corporate users are calling to question its relevance and the return on investment from using this platform.

Win Without Losing... Money

Ike Ikokwu | Posted 10.14.2012 | Money
Ike Ikokwu

Managing my wealth this way allowed me to achieve financial independence at the age of 34 as well as avoid the market crashes of 2008 and 2009.

Investing Costs That Will Devour Your Returns (And How to Avoid Them)

Jon Stein | Posted 08.28.2012 | Money
Jon Stein

What's a reasonable fee to pay for investing your own money? The answer: Much less than what you're probably paying for your 401(k) -- and the worst bit is you might not even realize it.

6 Things Dating Teaches Us About Investing

Alan Haft | Posted 08.15.2012 | Money
Alan Haft

Bad date last night? Don't despair. It's not as bad as you may think. Here's some good news: you may not know it, but when it comes to your money, that bad date can teach you an awful lot about successful investing.

Finding an Honest Financial Adviser

Kent Smetters | Posted 02.19.2012 | Business
Kent Smetters

It's that time of the year when people start thinking about their financial outlook. If you are like many people, you might want to get the help of a financial adviser.

What MF Global Can Teach You About Investing

Dan Solin | Posted 01.08.2012 | Business
Dan Solin

About 150,000 customer accounts were frozen by the trustee in charge of liquidating MF Global. These customers face long delays in resolving this mess. You can learn some valuable lessons from this debacle.

Simple Investing for Troubled Times

Dan Solin | Posted 12.11.2011 | Business
Dan Solin

"It is very hard, if not impossible, to justify active management if your goal is to grow wealth. If, instead, you view active management as a source of entertainment, you may wish to consider less costly ways to amuse yourself."

Morningstar Should Be Ashamed of Its 401(k) Plan

Dan Solin | Posted 12.04.2011 | Business
Dan Solin

I feel sorry for Morningstar's employees. The fund selections represent everything that is wrong with 401(k) plans in this country. Here are some suggestions for Morningstar's committee.

Investors Deserve Better From Yahoo's Breakout

Dan Solin | Posted 11.27.2011 | Business
Dan Solin

The perils of market timing are not controversial for anyone who is familiar with the data. Only brokers and actively managed mutual funds tout their expertise in predicting random and unpredictable markets.

What U.S. Open Tennis Can Teach You About Investing

Dan Solin | Posted 11.20.2011 | Business
Dan Solin

Experts in many fields have no better predictive powers than you do. This is particularly true about investing.

Jeff Macke Is Wrong: You Can't Time the Market

Dan Solin | Posted 11.13.2011 | Business
Dan Solin

Jeff Macke believes investors would have been well served by "stepping aside" and that "buying and holding forever have been tantamount to financial self-abuse." Each of these assumptions is incorrect. The potential damage to investors who follow this wrong-headed advice is substantial.