Other Retro Pages
- Yahoo Finance - For a
quick overview of market stats + stock quotes.
- The Wall Street Journal - If you want serious financial info!
- RealtyTrac - best place to look for housing bargains if you are
looking to buy a house (or just snoop around on your neighbors)
Tips On Saving and Investing From the SEC
- Getting the most out of your money: banks bid on your savings in
live auction (FDIC banks only).
- Article - Three Simple Steps to Financial Security
- Article - How to Create a Budget
- Mint.com - budget calculator - they say it's free...
- ShadowStats.com - Reasonable person who calculates the economic
indicator stats as if his political career did not depend on it.
Yes, the government is deceiving you.
- sadly, these guys are most likely going to be right.
Investing Like a Smart Person
Back in 1993 I remember reading an article in the Economist about
Baby Boomer demographics and the stock market. In the article, they
talked about how the Boomers - by far the largest demographic group
in the United States - were about to inherit a ton of money from
their parents - the hard working Great Generation.
This, coupled with the popularity of mutual funds and the
Boomer's "life is rosy and I'm wonderful" attitude toward risk was
about to breathe new life into the longest bull market in the history of bull
At the time I remember thinking "when Paul
McCartney and Mick Jagger are of retirement age, look out - those
Boomers will be yanking their money out of the stock market with
both hands in an attempt to put it in less risky investments to
Only this will cause the market to crash. See
here's the problem. The price of a stock used to be based on the
expected rate of return of the company (When people start yakking
about P/E ratios or multiples they are implicitly talking
about rate of return.)
At some point I started hearing people say things like "the price
of a stock is no longer tied to the company's potential earnings"
some gleefully (ignorance being bliss) and some with horror or
But along came the Boomer with Mom and Dad's money and
since they as a generation lack sense or the ability to apply logic,
proceeded to buy stock in record numbers. First they bought mutual
funds - to test the waters - and the share prices of mutual funds
Boomers, being anything but humble, were immediately
convinced of their own superior investment skills and soon branched
out to whatever brokerage firms could offer. The more timid the
Boomer, the later they jumped into the market.
Just about a year ago, my local paper did a series which in
essence was a "Farewell to the last of the Great Generation"
meaning there are almost none left. Meaning that the Boomers have
inherited all that they are going to inherit. Meaning the stock
market will no longer be flooded with Mom & Dad's money, and we can
expect a return to stock prices based on earnings.
A corollary of
this, btw will be a return to managers who can manage and executives
who can run a company, not just sit there and watch the stock price
go up. Retro Housewife, October 11th, 2009.
Achieve Financial Security -
Marry A Rich Man
One tried and true method for financial security is to marry a rich man.
And, as luck would have it, marrying a rich man is back in style! There
is even an entire dating site www.wealthymen.com devoted to pairing up hopeful women with
BUT REMEMBER! He won't buy the cow if
he gets the milk for free!
- Sales of previously occupied homes unexpectedly plunged
27 percent in July from a month earlier to 3.83 million -- the
lowest level since 1995, according to a report released Tuesday
morning by the National Association of Realtors.
Washington Post - Left Leaning Newspaper
- A total of 336,173 foreclosure filings were reported
nationwide in June
- Foreclosure activity increased nearly 11 percent from the
previous quarter and a 20 percent increase from the second
quarter of 2008.
- The foreclosure rate was one foreclosure filing for every
398 households during May
- A total of 342,038 foreclosure filings were reported nationwide in April, 2009
- Foreclosure activity increased 32 percent from April 2008
- The foreclosure rate was one foreclosure filing for every 374 households during April, 2009
MONEY & INVESTING FOR HOUSEWIVES
My View On The Economy - Hey, I Do Have A Masters In Economics...
An Explanation Of These Charts: Starting from the far left: This chart shows the currency exchange
rate between the US Dollar and the Euro -the official currency of
the European Union (EU). To read it think of yourself holding one,
single dollar bill, then ask yourself "how many Euros will I get for
my one dollar?" The value you read on the "y axis - the up and down
one" will tell you the answer. As of October 30, 2010 you will get
70¢ in Euro Money - Yes they call it "cents" just like we do.
Middle Chart: This chart shows the current price of gold over
the last 24 hours. Far Right Chart: This chart shows the
price of silver over the last 24 hours. Note: Gold and silver
are often purchased as protection against inflation. When their
prices rise, it is likely that many people think inflation is going
to rise, and they want to preserve the purchasing power of their
What Causes Inflation and Why You Should Care
May 30, 2009
For awhile I was worried about deflation - when prices fall instead of
climb - because shoppers were staying
home and credit cards were becoming harder to get - (meaning even less
shopping). But then the government started printing money so I
think we will see inflation after all. (A government printing
much guarantees inflation).
What do I mean by the government printing money?
Governments always print money - they have to, otherwise we would run
out of dollar bills - what matters is how much money they print ( or
release into the economy by other methods). Example: Say the
government owes you money (you own treasury bonds), in normal times it
has to pay you back using money it has collected - say from taxpayers.
Doing this causes no inflation because the overall amount of money has
stayed the same. The government just taxed Peter to pay Paul. (Poor
Sometimes, however, governments get the bright idea to just start
printing new money to pay Paul. They own the printing
press after all! If they do a lot of this, which they usually do once
they start, then prices will start to rise - why? The number of
things to buy hasn't changed. Say there is $100 of money
floating around in the economy - and 10 things to buy. Then the
government prints $100 more and gives it to everybody named Paul and
John and Mary and Cindy etc. all the people they owe money to. We now
have $200 to buy the same 10 items. Paul and John and Mary and Cindy run
down to the store and each wants to buy all 10 items - the shop keeper
senses an opportunity and raises the prices on his 10 things - they are
the same 10 things, they just now cost more. That is inflation.
Simplified Big Time, of course, but you get the idea.
The only winner here is the government - at least in the short run - it
didn't have to raise taxes - and it still paid off its debt. What will
eventually happen is that everything will just get more expensive and
the dollar will be worth less in comparison to other currencies. Here
are a few guidelines as to how you should invest whatever money you
- Cash is bad - the cash you have in your back
pocket will buy less and less each passing day. Same goes for the
cash in your checking account (unless the bank pays you interest and
the rate keeps pace with inflation - it usually doesn't).
- Fixed Rate Investments are bad! Certificates of
Deposits, or CDs that promise a fixed rate of return like 5% are
bad, bad, bad. Your real rate of return will be 5% - Inflation%. So
if inflation is 10%, you will "earn" negative 5% -
meaning you will only be able to buy 95% of the things you could
- Fixed Rate Debt is GREAT! - If you owe the bank
money and only have to pay back a fixed % - you win, the bank loses!
Hooray! Get caught with a variable rate mortgage, on the other
hand, really, really bad.
- Stuff is good - assuming it'll mean that you won't
have to buy other stuff tomorrow at higher prices.
- Gold Has Historically Been Good - and probably
will be in the future, too - although there is no real reason it
should be other than everybody sort of agrees that it is + it is
rare. It's not really useful, though... other than to admire - and I
can think of a few situations in which I would rather have a sack of
potatoes than a pound of gold. Make sure you get the coin in your
- Silver - The Poor Stepchild - Was it the '70s or
'80s when two brothers from Texas tried to corner the silver market
- and lost their shirts? Silver is much more affordable - around
$17 $19 $26 an oz. and is also a precious metal. More importantly, if the dollar
goes kablooey and we
resort to using precious metals and cigarettes to buy things, silver
could come in quite handy. Otherwise, a bag of groceries could prove
very expensive if you try to buy it with gold. (How do you make
change?) Make sure you take possession of whatever silver you buy.
Put some in your safe, or hide it under the floor boards.
- Real Estate Has Usually Been Good - It may lag at
first because there is so much available - but in the long run,
good, good good. - However - you can't hide real estate so if the
government decides you have too much money - they can tax it away
from you. Like what will soon happen in California. California
Real Estate BAD.
In the old days, financial matters were usually left up to the husband.
However, the modern retro housewife is certainly not adverse to lending
a helping hand in this area and depending on hubby's occupation and
education, may even be the better half when it comes to money!
This doesn't mean put your husband on a leash or nag at him about all
matters money, it means become a good study and learn a thing or two so
that you and your husband can be partners in a prosperous future.
I do not intend to teach you how to become a millionaire overnight; If I
knew that I would be writing about how to properly furnish a 60 ft
yacht. But, I do know a thing or two about finances and have adopted
some principals that have served my family well.
First some observations I have made:
- People generally fall into two categories; those who have money
and those who don't. I don't mean some people are rich and some are
poor, rather that some people always have savings and know how to
live within their means, whereas others are always overextended on
their credit cards and have one foot in bankruptcy court.
- No matter how much money you make, you can and should save some
of it for a rainy day and to invest. I hear people complaining all
the time about how hard it is to save money because they only make
$X amount, blah blah blah. Talk to some of the older folks around
who have been through really hard times (like a war or the great
depression) and then you will get an idea of what it is not to have
- Having savings or access to a reserve can keep you out of
financial ruin, and ensure that you and your husband are sipping
margaritas in Florida in your golden years, instead of slaving away
at a Piggly Wiggly*1 until you drop dead.
- Greedy people often do stupid things, are not to be trusted and
are generally unhappy. They remind me of Gollum from the Lord of the
- If it sounds too good to be true, 99% of the time it is. 1% of
the time it isn't and there is a lot of money to be made if you
don't get greedy and do stupid things.
- The best way to make money long term is to find something you
really like to do and become very good at it. If you are a
housewife, you probably don't receive a "paycheck", but as the major
spending arm of the family you have just as much influence on the
family finances as your husband. Get good at being a housewife!
* I don't know if there
is such a thing as a "Piggly Wiggly" or if their employees actually
slave away. I just heard the name on "That 70s Show" and think it is fun
April 10, 2007 Update! This just in!
my name is Danielle. I was just writing to say that there is a store
called "Piggly Wiggly". We actually have one in our small town in
Louisiana. LOL. But know people don't slave there! It is actually a
And, as it turns out,
Piggly Wiggly has a website! I think I love Piggly Wiggly.
WHAT DO YOU THINK?
Tell us at the retro housewife hotline!
The Retro Housewife Financial Forecast!
October 30, 2010:
I say stagnant economy further worsened by huge
increase in taxes as of 1/1/2011 by the federal government, business
bankruptcies due to no end in sight of increasing health care costs, and
a self inflicted death blow to the California economy in the form of the
global warming final solutions act which will introduce cap-and-trade to
CA on 1/1/2011 and 1/1/2012. The once strong CA economy will not be able
to pull the country out of the depression as it is being murdered. CA +
other states are headed for insolvency. To combat this, the Fed will
continue down its path of quantitative easing, or pulling money out of
thin air - which will eventually put the US economy in a death spiral of
hyper-inflation.Recession vs. Depression: What is the official
difference? How do we know whether we are in a recession (been there
done that) or a depression (something new for most)? I seem to remember
that the official definition of a depression was 2 or more consecutive
quarters of negative growth (or shrinkage).Some Inflation Indicators: Consumer Price Index
or CPI - that is published in many newspapers and financial
magazines. It compares a basket of items at today's prices with the
prices of the same items at various points in the past. (This is how it
used to work. Now they mess and fiddle to get the answer they want. For
Interest Rates are rising? If you have
acquired a lot of variable rate debt, you are going to feel the
squeeze. Put it this way - once the Fed/Treasury get a load of
the inflation that they have created, they will try to compensate by
putting the brakes on the money supply. Interest rates will go way up.
Pay off your bills now. The good news is that if you have money in the bank, your money will now work harder for you.
Interest rates on passbook savings accounts (generally considered to be the safest
way of investing your money, and, in fact, used by economist types as
the basis for the "risk free interest rate")
Stop charging, start saving and paying off your
CREDIT CARD balances.
Listen UP! If you can get a good balance transfer offer (no fees,
0% interest), take it! NOW!
I always do this, with my credit card balances...Free financing!
Higher interest rates usually mean:
A stronger dollar (good time to
A weaker stock market (buy as stocks
get cheaper or hold if you are still in stock,)
Falling housing prices!
Grandma's School Of Finance
Portfolio Diversification: Don't
put all your eggs in one basket! Portfolio diversification is a
good thing. If you have all of your eggs in one basket and you trip and fall (or
the CEO and CFO of a company you bought stock in are suddenly indicted for
embezzlement), you will break all your eggs!
Interest Rate: A penny saved is
a penny earned.
Risk Free Interest Rate: A bird
in the hand....
Risk Premium: ... is worth two
in the bush.
Risk and Return - A Little Background!
Some investments are riskier than other
Common sense says that given two
investment options that have the same rate of return, (for example
they both promise to pay you 5% interest), you will choose the safer
investment (FDIC insured savings account vs. your ex brother in-law
Vinny's business venture into opening a penguin circus.) - Vinny
would have to promise you ALOT more to sucker you into
Risky Investment: Don't
count your chickens before they've hatched.
The Law of Saving
By: Brian Tracy
Financial freedom comes to the person who saves ten percent or more of his
income throughout his lifetime.
One of the smartest things that you can ever do for yourself is to develop
the habit of saving part of your salary, every single paycheck. Individuals,
families and even societies are stable and prosperous to the degree to which
they have high savings rates. Savings today are what guarantee the security
and the possibilities of tomorrow.
Start With Yourself
The first corollary of the Law of Saving comes from the book The Richest Man
in Babylon by George Classon. It is to "Pay yourself first."
Begin today to save ten percent of your earnings, off the top, and never
touch it. This is your fund for long-term financial accumulation and you
never use it for any other reason except to assure your financial future.
Develop New Habits Regarding Money
The remarkable thing is that when you pay yourself first, and force yourself
to live on the other ninety percent, you will soon become accustomed to it.
You are a creature of habit. When you regularly put away ten percent of your
earnings, you soon become comfortable living on the other ninety percent.
Many people start by saving ten percent of their income and then graduate to
saving fifteen percent, twenty percent, and even more. And their financial
lives change dramatically as a result. So will yours.
Take Every Advantage
The second corollary of the Law of Saving says, "Take advantage of tax
deferred savings and investment plans." Because of high and even multiple
tax rates, money that is saved or invested without being taxed accumulates
at a rate of 30% to 40% faster than money that is subject to taxation.
Self-made millionaires, according to Dr Thomas Stanley's book The
Millionaire Next Door, are almost obsessive about accumulating their funds
in assets such as real estate, self owned businesses and equities that
increase in value without triggering tax liabilities.
Invest in company pension and retirement plans, 401(k) plans, IRA's, Keough
Plans, Roth IRA's, Education Investment Accounts, stock option programs and
whatever else has been approved by the IRS for long term financial
accumulation. Make every dollar count!
Here are two things you can do to apply this law immediately:
First, begin today to put away ten percent of your earnings. Set up a
special account for this purpose and treat your contributions to this
account with the same respect that you do your rent or mortgage payments
Second, become a lifelong student of money. Read the best books, take
courses and subscribe to the most helpful magazines. Know what you are doing
so you can always make intelligent decisions when you invest your funds.
How Can You Attract More Wealth and Abundance?
We are now surrounded by more wealth than at any time in our history. The
real question is how do YOU gain this abundance? Brian Tracy can show you
how! Become a money magnet, immediately increase your income and learn
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future an outstanding one with The Unbreakable Laws of Money Package.