President Obama echoed the sentiment of my most recent blog post this Tuesday when he said, "What you're now seeing is profit and earning ratios starting to get to the point where buying stocks is a potentially good deal," he said, "if you've got a long-term perspective on it."
As it's not usually the place of the president to speak on such specific matters, the White House press secretary hastened to clarify that we shouldn't "overly read into" the statement.
Yes, certainly we should exercise caution- making informed decisions for our own individual portfolios and not acting blindly on any one person's assertions or observations.
But you don't need to be an economic scholar to know a fire sale when you see one.
Thursday, March 5, 2009
Saturday, February 21, 2009
401 OK
I just went agro on my 401k.
According to The Washington Post, "The Dow...closed Friday at 7365.67, down 6.2 percent for the week. On Thursday, it fell below the previous bear-market low reached Nov. 20 to hit its lowest level in six years. On Friday, it plunged further as investors worried that banks would be nationalized."
I pounced on that like a cougar on a deer. Or like a cougar on a 22-year-old boy. Depends on which cougar you're more familiar with.
I started this job and this 401K almost a year ago. At the time, moving to a new city, starting a new job had me focused on movers and Bed Bath and Beyond more than honing in on the perfect investment strategy for something that wouldn't be accessible for 30 years. I also wasn't allocating a significant percentage to be taken directly from my paycheck in pre-tax dollars.
Silly girl, I know.
But in my defense, I needed cash in hand to pay for the months and months of moving-in and getting-settled costs... I was NOT using my credit card.
By January, with the holiday shopping over (no credit cards there either...Suze Orman would be so proud), it was time to tighten the purse strings and ramp up the 401K. Just an easy call to Fidelity and I more than doubled the amount going straight into my retirement account.
But I was still hemming and hawing about my allocation. I have a pretty boring mix of half stocks with an almost equal amount of bonds and cash.
Yawn.
I couldn't help but feel that I was missing an opportunity.
With retirement far off, I want to be aggressive and reallocate my mix so that I have more in stocks- now bought on the cheap- which will , with some time, eventually come back up in value.
The thing that scares novice investors about stocks is that the highs are higher but the lows are lower, in their returns. But for someone with 30 years until retirement, I can withstand the fluctuations and as I get older, I'll take profits from the stocks and buy more conservative bonds and cash options (which is what insulates one from losing so much in the event of another raping of the stock market).
You may have heard that 401Ks have been raked over the coals, but younger people can use this time to stock up on stocks. They're cheap.
Pounce.
I'm not taking this money out until I'm 60, so if the stocks continue to fall over the next 6 to 12 to 18 months, I'll just hold on to them until they come back up. Time is our asset.
I must say that while rationally, I feel savvy, in my gut I feel vaguely like a land speculator after Katrina. Stocks and bonds shouldn't be emotional but when so many have lost so much- jobs, investments- making lemonade from the souring fruit of Wall Street feels opportunistic.
Though this is no time to freeze up and lick our wounds.
Beyond my measly 401K, there will be good to come out of this time.
New ideas are being born. Even if actions are delayed due to frozen credit or the need for workers to hold tight to a current job for security, the creative juices of bright minds are flowing even more forcefully now- dreaming and scheming of the new world order that can and should be once we emerge from this black cloud.
And it is those individuals, those with drive, smarts and ambition, who will lead the way out.
According to The Washington Post, "The Dow...closed Friday at 7365.67, down 6.2 percent for the week. On Thursday, it fell below the previous bear-market low reached Nov. 20 to hit its lowest level in six years. On Friday, it plunged further as investors worried that banks would be nationalized."
I pounced on that like a cougar on a deer. Or like a cougar on a 22-year-old boy. Depends on which cougar you're more familiar with.
I started this job and this 401K almost a year ago. At the time, moving to a new city, starting a new job had me focused on movers and Bed Bath and Beyond more than honing in on the perfect investment strategy for something that wouldn't be accessible for 30 years. I also wasn't allocating a significant percentage to be taken directly from my paycheck in pre-tax dollars.
Silly girl, I know.
But in my defense, I needed cash in hand to pay for the months and months of moving-in and getting-settled costs... I was NOT using my credit card.
By January, with the holiday shopping over (no credit cards there either...Suze Orman would be so proud), it was time to tighten the purse strings and ramp up the 401K. Just an easy call to Fidelity and I more than doubled the amount going straight into my retirement account.
But I was still hemming and hawing about my allocation. I have a pretty boring mix of half stocks with an almost equal amount of bonds and cash.
Yawn.
I couldn't help but feel that I was missing an opportunity.
With retirement far off, I want to be aggressive and reallocate my mix so that I have more in stocks- now bought on the cheap- which will , with some time, eventually come back up in value.
The thing that scares novice investors about stocks is that the highs are higher but the lows are lower, in their returns. But for someone with 30 years until retirement, I can withstand the fluctuations and as I get older, I'll take profits from the stocks and buy more conservative bonds and cash options (which is what insulates one from losing so much in the event of another raping of the stock market).
You may have heard that 401Ks have been raked over the coals, but younger people can use this time to stock up on stocks. They're cheap.
Pounce.
I'm not taking this money out until I'm 60, so if the stocks continue to fall over the next 6 to 12 to 18 months, I'll just hold on to them until they come back up. Time is our asset.
I must say that while rationally, I feel savvy, in my gut I feel vaguely like a land speculator after Katrina. Stocks and bonds shouldn't be emotional but when so many have lost so much- jobs, investments- making lemonade from the souring fruit of Wall Street feels opportunistic.
Though this is no time to freeze up and lick our wounds.
Beyond my measly 401K, there will be good to come out of this time.
New ideas are being born. Even if actions are delayed due to frozen credit or the need for workers to hold tight to a current job for security, the creative juices of bright minds are flowing even more forcefully now- dreaming and scheming of the new world order that can and should be once we emerge from this black cloud.
And it is those individuals, those with drive, smarts and ambition, who will lead the way out.
Saturday, January 24, 2009
Sunday, January 11, 2009
Fill in the Blanks
It occurs to me that the practice of Saving Money is like the practice of Tantric Sex.
To test this theory, I've taken an informative article on trantra and retro-fit it with more pecuniary terms. A fiscal Mad Libs, if you will....
From Discovery Health
"Tantric Sex Techniques to Reinvigorate Lovemaking"
By Amy Painter
As interpreted for the Economisery audience by Miss Mary Joan
Have you ever experienced a moment of sexual (financial) ecstasy? How did it make you feel?
Exhilarated? Luminous?
Intense sexual (financial) experiences are (can and should be) one of our greatest sources of pleasure.
At the same time, sex is (personal finances are) often regarded with an equal measure of fear and fascination. We may crave sexual intimacy (fiscal competency) to the core of our being, yet also take great pains to avoid it. We may long to rekindle lost passion (for our savings accounts), but have forgotten how to light the fire.
The practice of Tantra (Saving) shows us how to reclaim the sexual intimacy (financial security) that is (sadly not) our birthright. And through this most ancient of arts, we may discover new joys of the erotic (fiscal) and expand mere moments of sexual ecstasy (penny pinching) into a lifetime of sexual (monetary) bliss.
In this model, the sexual (saving) experience is seen as a dance with no beginning or end. Tantra (Saving) teaches lovers (everyone, from 80-yr-olds to elementary school children) how to extend the peak of their sexual ecstasy (paycheck, allowance or social security) so that women and men can experience multiple orgasms (double-digit interest gains) in a single sexual encounter (with even just one well-purchased stock).
Beginning Tantric Sex (Savings) Techniques
The following exercises will help you reconnect with your body (spending habits) and with your partner (financial profile) in a profound way. As you move through these steps, do not focus on intercourse (spending) as the ultimate goal. Instead, simply enjoy giving and receiving pleasure using gentle touch and loving words. (Instead, simply enjoy building a nest egg using automatic withdrawals from your paycheck and accruing interest).
Try to spend several weeks practicing the Tantric Intimacy (Automatic Saving) Exercises without necessarily engaging in intercourse (spending). For many, experiencing these exercises with no pressure to "go all the way" helps release sexual guilt (financial burden), builds trust (within you) and reawakens sexual desire (financial prowess). Enjoy!
Tantric Sex (Saving) — Welcoming Love (Peace of Mind)
Set aside an hour or more of uninterrupted time to be together (with your bank statements). Although it may be difficult to find the time or to manage children, you won't be able to benefit from Tantra (Saving) if this is not a priority.
Create an inviting atmosphere. Whether you meet in your bedroom, living room or another space in your house, creating a sacred space for each other (for financial records) will help relax you and bring you into the moment. Candles (a calculator), fresh flowers (a computer), erotic art (Quicken software), finger foods (yes, why not finger foods?) and tantalizing aromas can transform any room into a temple of sexual (pecuniary) delight.
Tantric (Fiscal) Intimacy Exercises
Use ritual to develop intimacy (stability). Begin your journey with a ritual. This may be something as simple as sharing a glass of wine in the nude (as simple as checking your bank balance everyday). Some couples enjoy bathing together in order to attune to each other (that may not be a financial recommendation, but getting all sudsy might brighten one’s outlook on the economy, debt and life in general. Pass the loofah, please!)
As you experiment with Tantric (Saving) techniques, don't worry whether you are doing something the "right" way. Tantra (Saving) does not judge right or wrong, good or bad. Ultimately, your pleasure is what matters most. (Ultimately, spending less than you earn is what matters most).
Keep it slow.
Bring your attention to your breath. Resist the urge to breathe (spend) quickly. Quick breathing (spending) creates arousal, speeding you toward orgasm (debt). Instead, take long, slow breaths (withdrawals) from the belly (checking account), exhaling (spending) gradually. (And only when necessary).
Vary your positions (investment types) to explore your (portfolio's) duality. Different sex positions (stock options) add to sexual (investment) pleasure and balance male and female energies.
Relax.
…From there the author goes on to describe in detail the breaths and the muscles and the slowing and the undulations. All good stuff, but I’ll leave you to research her directions if I’ve piqued your interest in Tantra.
More so I hope that I’ve pique your interest in Saving and the realization that the joy of the quick spend is a momentary rush- robbing your bank account of a healthy base for interest to grow and robbing you of an emergency stash of cash.
(Here’s where I start to sound like a Southern minister)
Delay the mild gratification of a torrid incident with a credit card and opt instead for the will to say no, to put yourself on a budget and to know that you can be in control of your finances. (Yes, you can!)
Contrary to American culture, remember that not everything must be purchased, consumed or acquired at the moment we want it.
I don’t suggest stalling purchases forever, but, like Tantra, learn to slow down, gain focus and harness calm to make even the smallest, yet decisive, fiscal actions yield pleasure- or better- return on investment.
Namaste.
To test this theory, I've taken an informative article on trantra and retro-fit it with more pecuniary terms. A fiscal Mad Libs, if you will....
From Discovery Health
"Tantric Sex Techniques to Reinvigorate Lovemaking"
By Amy Painter
As interpreted for the Economisery audience by Miss Mary Joan
Have you ever experienced a moment of sexual (financial) ecstasy? How did it make you feel?
Exhilarated? Luminous?
Intense sexual (financial) experiences are (can and should be) one of our greatest sources of pleasure.
At the same time, sex is (personal finances are) often regarded with an equal measure of fear and fascination. We may crave sexual intimacy (fiscal competency) to the core of our being, yet also take great pains to avoid it. We may long to rekindle lost passion (for our savings accounts), but have forgotten how to light the fire.
The practice of Tantra (Saving) shows us how to reclaim the sexual intimacy (financial security) that is (sadly not) our birthright. And through this most ancient of arts, we may discover new joys of the erotic (fiscal) and expand mere moments of sexual ecstasy (penny pinching) into a lifetime of sexual (monetary) bliss.
In this model, the sexual (saving) experience is seen as a dance with no beginning or end. Tantra (Saving) teaches lovers (everyone, from 80-yr-olds to elementary school children) how to extend the peak of their sexual ecstasy (paycheck, allowance or social security) so that women and men can experience multiple orgasms (double-digit interest gains) in a single sexual encounter (with even just one well-purchased stock).
Beginning Tantric Sex (Savings) Techniques
The following exercises will help you reconnect with your body (spending habits) and with your partner (financial profile) in a profound way. As you move through these steps, do not focus on intercourse (spending) as the ultimate goal. Instead, simply enjoy giving and receiving pleasure using gentle touch and loving words. (Instead, simply enjoy building a nest egg using automatic withdrawals from your paycheck and accruing interest).
Try to spend several weeks practicing the Tantric Intimacy (Automatic Saving) Exercises without necessarily engaging in intercourse (spending). For many, experiencing these exercises with no pressure to "go all the way" helps release sexual guilt (financial burden), builds trust (within you) and reawakens sexual desire (financial prowess). Enjoy!
Tantric Sex (Saving) — Welcoming Love (Peace of Mind)
Set aside an hour or more of uninterrupted time to be together (with your bank statements). Although it may be difficult to find the time or to manage children, you won't be able to benefit from Tantra (Saving) if this is not a priority.
Create an inviting atmosphere. Whether you meet in your bedroom, living room or another space in your house, creating a sacred space for each other (for financial records) will help relax you and bring you into the moment. Candles (a calculator), fresh flowers (a computer), erotic art (Quicken software), finger foods (yes, why not finger foods?) and tantalizing aromas can transform any room into a temple of sexual (pecuniary) delight.
Tantric (Fiscal) Intimacy Exercises
Use ritual to develop intimacy (stability). Begin your journey with a ritual. This may be something as simple as sharing a glass of wine in the nude (as simple as checking your bank balance everyday). Some couples enjoy bathing together in order to attune to each other (that may not be a financial recommendation, but getting all sudsy might brighten one’s outlook on the economy, debt and life in general. Pass the loofah, please!)
As you experiment with Tantric (Saving) techniques, don't worry whether you are doing something the "right" way. Tantra (Saving) does not judge right or wrong, good or bad. Ultimately, your pleasure is what matters most. (Ultimately, spending less than you earn is what matters most).
Keep it slow.
Bring your attention to your breath. Resist the urge to breathe (spend) quickly. Quick breathing (spending) creates arousal, speeding you toward orgasm (debt). Instead, take long, slow breaths (withdrawals) from the belly (checking account), exhaling (spending) gradually. (And only when necessary).
Vary your positions (investment types) to explore your (portfolio's) duality. Different sex positions (stock options) add to sexual (investment) pleasure and balance male and female energies.
Relax.
…From there the author goes on to describe in detail the breaths and the muscles and the slowing and the undulations. All good stuff, but I’ll leave you to research her directions if I’ve piqued your interest in Tantra.
More so I hope that I’ve pique your interest in Saving and the realization that the joy of the quick spend is a momentary rush- robbing your bank account of a healthy base for interest to grow and robbing you of an emergency stash of cash.
(Here’s where I start to sound like a Southern minister)
Delay the mild gratification of a torrid incident with a credit card and opt instead for the will to say no, to put yourself on a budget and to know that you can be in control of your finances. (Yes, you can!)
Contrary to American culture, remember that not everything must be purchased, consumed or acquired at the moment we want it.
I don’t suggest stalling purchases forever, but, like Tantra, learn to slow down, gain focus and harness calm to make even the smallest, yet decisive, fiscal actions yield pleasure- or better- return on investment.
Namaste.
Wednesday, December 31, 2008
In the New Year
Budget: bud·get
Pronunciation: \ˈbə-jət\
Function: noun
The amount of money that is available for, required for, or assigned to a particular purpose.
Not that I would ever tell someone what to do (no, not me) but perhaps a useful resolution for all in 2009.
Pronunciation: \ˈbə-jət\
Function: noun
The amount of money that is available for, required for, or assigned to a particular purpose.
Not that I would ever tell someone what to do (no, not me) but perhaps a useful resolution for all in 2009.
Thursday, December 25, 2008
Today's Wonderful Life
Did anyone catch the "It's a Wonderful Life" broadcast?
While watching last year for what could have been the 83rd time, I was mesmerized anew by the honest emotional conflicts the film captures. The tortured self-examination of a man on the brink of suicide is to this day so laceratingly real and mature, yet exists in this Americana snow globe, shaken only at the holidays.
What a piece of film making!
And what an odd tale to have burrowed its way into the seasonal American fabric, just consider;
A) George Bailey is good, but not always nice
B) There are no song and dance numbers- this is certainly no "White Christmas," and
C)The telephone scene between Mary and George- hot!
But those observations are 'so last year'.
This year the classic enlightens me again, but this time it's all about Potter- who, in today's economy, should be the man of the hour. A sour puss- yes, a kill joy- most certainly, a voice of reason- perhaps.
George beseeches the angry mob to remember that without the Savings & Loan, Potter would be able to keep the citizens of Bedford Falls in his slums, kicking out tenants who can't make their payments and that it was George, his father and uncle who made the dream of home ownership possible for those who would have otherwise been held under Potter's thumb (a more lovable Countrywide, if you will).
The fictional citizens in a 1946 film were striving for what the hard working people of present day America have been given- the powerful tool of credit; to obtain a better life, to strive and achieve more, to ultimaltely exceed their wildest dreams.
And with that excess, we are all learning what 'too much of a good thing' looks and feels like.
Thoughts for the Christmas season.
While watching last year for what could have been the 83rd time, I was mesmerized anew by the honest emotional conflicts the film captures. The tortured self-examination of a man on the brink of suicide is to this day so laceratingly real and mature, yet exists in this Americana snow globe, shaken only at the holidays.
What a piece of film making!
And what an odd tale to have burrowed its way into the seasonal American fabric, just consider;
A) George Bailey is good, but not always nice
B) There are no song and dance numbers- this is certainly no "White Christmas," and
C)The telephone scene between Mary and George- hot!
But those observations are 'so last year'.
This year the classic enlightens me again, but this time it's all about Potter- who, in today's economy, should be the man of the hour. A sour puss- yes, a kill joy- most certainly, a voice of reason- perhaps.
George beseeches the angry mob to remember that without the Savings & Loan, Potter would be able to keep the citizens of Bedford Falls in his slums, kicking out tenants who can't make their payments and that it was George, his father and uncle who made the dream of home ownership possible for those who would have otherwise been held under Potter's thumb (a more lovable Countrywide, if you will).
The fictional citizens in a 1946 film were striving for what the hard working people of present day America have been given- the powerful tool of credit; to obtain a better life, to strive and achieve more, to ultimaltely exceed their wildest dreams.
And with that excess, we are all learning what 'too much of a good thing' looks and feels like.
Thoughts for the Christmas season.
Monday, December 15, 2008
Storytime
Once upon a time there was a princess who possessed the magical power to obtain whatever she wanted immediately. Poof! Voila!
The only hitch was that the princess had to eventually pay for those items.
That wouldn't be hard, no, of course not.
But my, how the Princess could shop and travel and dine. My, my.
Then one day the Princess realized that she'd been excessive in her magic carpet rides.
And there was no Fairy Godmother coming to turn Amex into fairy dust.
My, my.
'Debt', it turns out, is what happens when there is more on your credit cards than you can pay off. And with this realization, the princess started to feel more like a toad.
Did she faint? No?
Ask the King, her father, for help? Nay.
The little lady went hardcore She-Ra on her spending habits.
And the rest, well the rest is being revised as we speak. The princess is your very own, Miss Mary Joan (spoiler alert) and it turns out she wrote a book. Or at least the draft of a book.
OK, I'm tired of the story telling. Back to glorious first person...me, me, me. I mean, this is a blog, not naptime.
As I was saying-
In the middle of my financial fury, I also wrote about my crusade to reinvent my spending habits.
Surely I couldn't be the only one who was errant in my spending ways?
I wondered. I wrote.
I became tenderly aware of other people's habits.
And aware of what the banks were doing.
And what seems now to be the whole world's errant manner of spending.
Now that I've written as much as I have, I can't stop. Hence blog.
There's just too much fodder out there not to.
And in the meantime I'm revising my book, though it's in what I call the "Cud Stage".
It's just cud now, we'll see how I end up spitting it up.
The only hitch was that the princess had to eventually pay for those items.
That wouldn't be hard, no, of course not.
But my, how the Princess could shop and travel and dine. My, my.
Then one day the Princess realized that she'd been excessive in her magic carpet rides.
And there was no Fairy Godmother coming to turn Amex into fairy dust.
My, my.
'Debt', it turns out, is what happens when there is more on your credit cards than you can pay off. And with this realization, the princess started to feel more like a toad.
Did she faint? No?
Ask the King, her father, for help? Nay.
The little lady went hardcore She-Ra on her spending habits.
And the rest, well the rest is being revised as we speak. The princess is your very own, Miss Mary Joan (spoiler alert) and it turns out she wrote a book. Or at least the draft of a book.
OK, I'm tired of the story telling. Back to glorious first person...me, me, me. I mean, this is a blog, not naptime.
As I was saying-
In the middle of my financial fury, I also wrote about my crusade to reinvent my spending habits.
Surely I couldn't be the only one who was errant in my spending ways?
I wondered. I wrote.
I became tenderly aware of other people's habits.
And aware of what the banks were doing.
And what seems now to be the whole world's errant manner of spending.
Now that I've written as much as I have, I can't stop. Hence blog.
There's just too much fodder out there not to.
And in the meantime I'm revising my book, though it's in what I call the "Cud Stage".
It's just cud now, we'll see how I end up spitting it up.
Subscribe to:
Posts (Atom)