Make More, Spend Less – Invest the Difference
Financial Health and Wellness has a LOT in common with Physical Health and Wellness; especially in the sense that everyone knows it’s important; and they even know how to do it (make more, spend less, invest the difference), but very few people actually do what it takes to achieve it. John Templeton once explained to a reporter his secret for becoming wealthy; for the first 20 years out of college, he saved half of everything he earned. Period. Now John Templeton is a LEGENDARY investor and earned good returns for his clients by investing. But his SECRET to wealth was [...]
Is Money the Root of All Evil or Good for the Soul?
First of all, the entire quote from Pauls’ Letter to Timothy is “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.” So the love of money (and of all the things that money can buy) is the root of all evil according to St. Paul. Not money in and of itself. Having money is no more evil than not having money; neither of them is good or bad in and of themselves. It’s the love of money, the lust for [...]
Used Cars and Retirement
In 1995 Grandpa wrote “Fund Your IRA Every Year, or How to Retire Wealthy by Driving Used Cars.” Twenty-five years later the message remains true and I think bears repeating: time and 1 compound interest work wonders. So, I want to break it down for you. The MSRP (Manufacturers Suggested Retail Price) for a 2019 base model Ford Taurus SE is $29,000. The Kelley Blue Book Fair Purchase Price for a 2009 Ford Taurus SE is $5,000. Right away you can see how buying the 10-year-old car frees up $24,000 for you to invest. Using a compound interest table (2) [...]
The Goal of Investing
SOME PEOPLE SELLING INVESTMENT ADVICE SPEAK OR WRITE OF “DIVERSITY” AS IF IT WERE THE GOAL OF INVESTING. IT’S NOT! THE GOAL OF INVESTING IS TO MAKE YOU MONEY. – RON MUHLENKAMP We are all familiar with the phrase “Don’t put all your eggs in one basket.” It’s important to check the quality of the baskets. Not all baskets are well constructed. In the investment business, a CD basket differs from a bond basket, which differs from a stock. Some people selling investment advice maintain that you should use all of these baskets for diversity. They speak or write of diversity [...]
Working the Problem: The Impact of COVID
Jeff and Tony Muhlenkamp discuss the economic disruptions caused by the COVID-19 pandemic. WORKING THE PROBLEM: The Impact of COVID.2020.06.04 from Muhlenkamp & Co on Vimeo. If you have questions or comments about the content of the webcast, don’t hesitate to send us a message or call us at (877)935-5520. The opinions expressed are those of Muhlenkamp and Company and are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.