Whether it’s for a business, a home or a new car, there’s something very attractive about the idea of asking friends or family for a loan. Nobody’s worried about a credit check or the other lengthy documentation and you can still hang out with your lenders at the holidays.
Anyone who has paid for gasoline, health care or college tuition lately knows that even if the overall rate of inflation is modest, there are areas where costs are rising more dramatically. Earning returns that exceed the cost of living is important for all investors, but it is especially critical for those who may depend on their portfolios as a source of income.
The first beneficiary of Social Security was Ida May Fuller in 1940. Though she had only paid in a total of $24.75 over three years of taxes, her first monthly retirement benefit check was $22.74. Over Ida’s lifetime she received income of almost $23,000, an amount approaching 1,000 times what she put in.
The mortgage insurance company, PMI Inc. did a study of real estate booms and busts in the past to see how long some previous downturns have lasted. They looked at three boom markets: Houston in the ‘80s and Los Angeles, and Boston in the‘90s. Here is what they discovered.
When rich families squabble over the family legacy, it becomes headline news. Witness the recent battle over the ownership of the Wall Street Journal between members of the Bancroft family. When approached by media titan Rupert Murdoch, various family members fought over whether to preserve the family legacy at the legendary daily business paper or take the money and run. Money eventually won.
As the year draws to a close, many people take time to reflect on their financial circumstances and to plan ahead, making provisions for their future needs and those of their loved ones.
December’s a busy month, but it’s not too late to focus on last-minute tax savings. Here are some things that you can do:
LPL’s Lincoln Anderson and his predictions for 2008:
Sometimes money costs too much. – Ralph Waldo Emerson
There are so many parts of my work that I like that it is hard to pick one favorite. One of the consistently most interesting parts is the interplay between our values and our money. What will we give up for money, and what truly is priceless?
The airwaves are full of cautionary tales of young people with too much money too soon – wretched excess is in, and responsibility seems, well, pretty boring. And your last name doesn’t have to be “Hilton” for you to worry.