Economic Edge » Money Management

Advisors expect double-digit growth in hedge funds & alternative assets

EconEdge — Tue, 19 Dec 2006 14:15:04 +0000

Morningstar polled 600 advisers in August and found that 65 percent of them expect more than double-digit growth in alternative investments, which include hedge funds.

"We were surprised to find that the majority of advisers expect double-digit growth in alternative assets under management every year for the next five years," said Steve Deutsch, director of separate accounts and managed investments at Morningstar.

Chelsea Clinton Gets Job at New York City Hedge Fund

EconEdge — Thu, 09 Nov 2006 00:47:49 +0000

According to an article published by The New York Daily News, Chelsea Clinton will begin working for Avenue Capital Group, a New York City hedge fund that has donated significantly to her mother's re-election campaign fund.

How to Get $250K in Tax-Free Money Every 2 Years

EconEdge — Mon, 30 Oct 2006 18:37:11 +0000

Looking to keep more of your hard-earned money from the tax man? Well, you're going to love this tax exclusion.

How You Can Exclude up to $250,000 Tax-Free on the Sale of Your Primary Residence

How to Invest For High Returns & Avoid Losing Your Original Investment

EconEdge — Mon, 30 Oct 2006 00:43:51 +0000

This post is written in response to a reader's question. The reader asked…

How Can I Get the Highest Return While Minimizing Risk?

This is the $64 million dollar question—the holy grail of investing. Every investor seeks to maximize his return while minimizing risk (mainly the risk of losing his original investment, but also the risk of looking dumb by making unwise and foolish investments). Generally speaking, the higher the return, the higher the risk. "He who bears the risk reaps the reward." This is true in mortgage banking, small business, the financial markets, personal relationships, and many other areas of life.

What Percent of Annual Income Should I Spend on a Car?

EconEdge — Sat, 21 Oct 2006 18:43:13 +0000

Buying a car is one of your largest expenses, aside from housing and food costs. I believe that you should never finance a car. Cars are depreciating assets that do not hold their value. If you are going to finance something, finance an asset, not a liability.

Fixed Expenses Should Be What Percent of Your Take Home Pay?

EconEdge — Fri, 20 Oct 2006 15:33:13 +0000

Fixed Expenses As a Percentage of Income

When setting a budget, it's important to consider both fixed and variable (changing) expenses. Fixed expenses include costs that do not change over time. Examples of monthly fixed expenses include: insurance premiums, the cable bill, the internet bill, your mortgage payment (if you’ve got a fixed rate), and childcare expenses. These expenses change very little (or quite possibly never) on a month-to-month basis. Insurance premiums generally rise over time. However, the insurance agent should provide you with an annual statement, listing each monthly bill for the next 12 months—-thus, you can plan in advance for all insurance payments.

Japan's Money Management Industry Growing–Mutual Fund Assets on Verge of Boom

EconEdge — Thu, 19 Oct 2006 19:08:48 +0000

According to an article recently published by Investment News, Japan's money management industry (particularly its mutual fund sector) could be on the verge of a boom.

Economic Facts about Japan

Japan is the world's second-largest economy.

Encouraging financial self-education

EconEdge — Sun, 06 Aug 2006 15:21:25 +0000

More Q & A with Gary North. I thought the subscriber asked a good question, and I liked Gary's response…

Age: 51 (married); location: small town Utah; occupation: owner of 2 small businesses; income: $250,000+ per year; net worth: $2,000,000+; #1 Goal: prepare family for consequences of irresponsible U.S. fiscal and monetary policies.

Exchange Traded Notes Provide Another Option for Commodity Investors

EconEdge — Fri, 09 Jun 2006 23:11:40 +0000

You've heard of exchange traded funds (ETF's). But now, there's a new option…exchange traded notes. Investors can now purchase exchange traded notes, which function similarly to ETF's except they are debt securities backed only by the credit of the issuer. For commodity investors, the iPath Dow Jones-AIG Commodity Index Total Return ETN may be worth considering.

Personal Finance Tip: How to Buy a Used Car

EconEdge — Mon, 29 May 2006 22:46:05 +0000

Good personal finance article from Gary North on how (and why) to buy a used car…

"It's that time of the year again. It's new car season. You are going to be pressured to part with a lot of money. You may be tempted to do this by the siren call of the new car ads. I write this report as a way to help you get through this month of temptation with your finances still intact.

The Mindset of the Self-Made Rich

EconEdge — Tue, 23 May 2006 19:58:31 +0000

Good personal finance advice (from Gary North) about how to purchase cars wisely, handle expenses and make financial decisions.

THE MINDSET OF THE SELF-MADE RICH

What you read here, you can confirm by reading the book, "The Millionaire Mind."

Why You Should Never Finance a Car

EconEdge — Sun, 07 May 2006 17:03:53 +0000

The advice below is quite possibly the one of the best personal finance tips ever. Courtesy of Gary North…

"Whenever I see an ad for a new car, I think, 'Suckers!' There is no more economically stupid purchase than a new car.

How to Teach Your Children about Money, Investing & Real Estate

EconEdge — Fri, 28 Apr 2006 23:17:16 +0000

Good advice from Gary North on how to teach your children about money management, investing and real estate.

Q & A With Gary North

Age: 70/76; occupation: retired GM; location: AZ & MI; assets: two homes worth $1M, $250K mortgages. $70K/yr current income (GM pension & Social Security). $100K savings.

Should we sell both properties, buy less extravagant, or keep lifestyle with only one house until end? Children want nothing.

New Roth 401K's offer Tax Free Withdrawals

EconEdge — Sun, 23 Apr 2006 04:18:35 +0000

Since Roth IRA's arrived on the scene in 1997, those saving for retirement have had the option of a regular IRA, with tax-deductible contributions, or a Roth IRA with no tax deduction but tax free withdrawals.

Microcaps & Exchange Traded Funds

EconEdge — Tue, 18 Apr 2006 18:01:29 +0000

According to a recent article in Entrepreneur magazine, micro-cap stocks (stocks with a market cap between $50 million and $500 million) increased 72.3 percent over the past five years.

In the past, if you wanted to track micro-cap stock performance, you had to buy micro-caps individually or buy an index fund that tracked the Russell 2000 (small-cap index). Now, however, there's a new Russell index…in addition to the Russell 3000, 2000, and 1000 indexes, there's The Russell Micro-cap Index.

Entrepreneurship, Career Choices, & Legal Tax Avoidance

EconEdge — Thu, 06 Apr 2006 16:34:09 +0000

Gary North recently began answering financial questions posed by his newsletter readers. He publishes a "Questions & Answers" section every Friday. The questions and answers below deal with career choices, entrepreneurship, budgeting (both time and money), and legal tax avoidance.

States With No Income Tax

EconEdge — Mon, 27 Mar 2006 01:47:45 +0000

Seven states have no state income tax:

Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming

New Hampshire and Tennessee tax only capital gains (dividend and interest income). If you're not geographically tied to your job, I'd suggest moving to a state that does not tax income. Run the numbers; you'll probably be surprised how much you'd save.

Read more on States With No Income Tax…