I must say, I enjoy the Sunday round-up posts. It keeps me open to new ideas and on the lookout for fresh blogs. I try to bookmark one or two articles each day and then on Saturday review my collection. Right until now I don’t know how many will past final edit. Let’s get started and see my weekly finds.
Benjamin Clark posted at Christian PF, What are Charitable Gift Annuities and how do they work? It turn out they offer a way to get a tax deduction, immediately, then get a steady income while also do good (donating to a charity.) The downside, if there is one, is that upon your death, the charity picks up the remaining value of the funds, no money is left for your heirs.
The Psychology of Bubbles: Using Hindsight to Examine Why We Bought into the Hype is an excellent, in depth, discussion of bubbles and their cause posted at Steadfast Finances. He includes a chart of the stages of a forming and then crashing bubble, as well as discussions of the bubbles of the most recent ten years, tech, oil, and housing. Excellent post, worth your time.
Similar to the oft repeated message we hear about achieving prosperity, but worth reading is 5 reasons you are not wealthy. One day, these behaviors will be obvious enough that we’ll learn to avoid them, and get on track. Maybe.
Investopedia’s Amy Bell posted Overcoming 5 Major retirement Risks. One Risk is that you might outlive your cash. Amy offers suggestion on how to overcome this risk and four others in this article.
For some time I’ve been trying to get the word out that the Roth conversion will benefit a select few at any time. Now, Susan Tompor of Freep.com agrees that Roth IRA conversion isn’t for everyone. Of course there are many factors to consider, but Susan reminds us that if you don’t have the cash handy to pay the tax upon conversion, it’s never a good idea. The rules kick in in just about 6 weeks, what are your plans?
And to close out this week’s reading – The oblivious investor again shows us he’s anything but, his Efficient Market Hypothesis: Strong, Semi-Strong, and Weak is a great paper on a topic we usually run into in a college level finance class. This theory basically states that the current price of a stock represents all know data available on that stock at that given point in time. Theory vs reality, I suppose.
Another good week. Four days till turkey.
Joe
Thanks for the linkage and the kind words. That post took a while to piece together but turned out pretty well.
It’s obvious that this was not a throw-away, a lot of good thought in this. Bubbles are tough to avoid, and tougher to profit from.
Joe,
As I always say, in theory, there’s difference between theory and reality. 🙂
On cyclical herding in asset manias, one cannot go wrong in understanding, if not why, how they develop with Elliot Waves.