Posts made in June, 2013

Investments and Cash Reserves – Cash and CDs: Part 2

Posted by on Jun 28, 2013 in Financial Focus

In our previous Cash and CDs post, we discussed the reality and perception of the yield on cash and CDs. At after-inflation rates below zero, many people are wondering where to put their cash reserves. Here are a few common questions that we have been hearing:   Q: What should I do with cash or money markets? A: The answer to this question is not the same for everyone. In general, time frames and objectives for the cash will play a role in the appropriate answer for each situation. The most common use for cash is an emergency fund. We recommend a minimum of 3-6 months of living expenses...

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Generational Gap on Perceived Cash and CDs Rate of Return

Posted by on Jun 12, 2013 in Financial Focus

It’s a well-known fact that cash and CDs yields are at historic lows. MFS Investment Management conducted an interesting survey last year. At the time, CD rates were averaging 0.34%, and they aren’t much different today. After inflation, CD investors are actually losing purchasing power at a rate of -2.36% per year! The part that we found interesting in this study was the difference in the perception of Cash and CDs rate of return across different generations. Baby Boomers, Gen X, and Gen Y each had vastly differently “believed” rates of return. All of which were huge overstatements of what...

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The Path of the Poverty Rate

Posted by on Jun 10, 2013 in Financial Focus

This encouraging video illustrates the change in the international poverty rate between 1990 and 2010. As you can see, worldwide poverty rate is falling, and at a faster rate than most would have anticipated decades ago.  According to the short video, extreme poverty may be essentially eliminated before...

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Measuring the Value of a Financial Planner

Posted by on Jun 5, 2013 in Financial Focus

In a study by Morningstar released last year, the value of “making smart financial planning decisions” was quantified. By diligently researching financial decisions on your own, or working alongside a qualified financial planner to perform this research and analysis, Morningstar was able to estimate the potential benefits to an investment portfolio both in terms of dollars and cents as well as level of satisfaction as it relates the particular financial needs of those saving for retirement. As alpha and beta already have a place in investment analysis, Morningstar coined the term “Gamma” for...

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