5 Steps To Freedom: How to Cut Your Dependence on Institutions and Escape Financial Slavery July 6, 2009
Posted by Jeff Nabers in Uncategorized.4 comments
Finally, it’s here! Amazon won’t have it in stock for another 2 to 4 weeks, but you can use the buy now button above to order the book and I’ll ship it directly to you immediately. (If you’ve already ordered one, it’s going out to you today.)
If you’re reading my blog, I assume you want to take control of your finances and your life. Get the book to find out…
- Why a rising stock market steals from us
- Why savings accounts don’t save
- Why you’re on track to working harder for longer for less
- An action plan for escaping financial slavery
- 5 simple steps to freedom
Here’s the official (more…)
The most important financial question you must ask June 19, 2009
Posted by Jeff Nabers in Money.Tags: bernanke, bls, cpi, deflation, depression, ecnomy, fed, free market, freedom, geithner, government, greenspan, inflation, meltdown, monetary, Money, obama, paulson, prices, recession
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What is inflation?
I believe this is the most important financial question a person can ask. I am constantly on a trek to better understand money and wealth. Here is some of what I’ve learned thus far:
Per its original meaning:
- Inflation is not a rise in prices
- Inflation is a rise in the money supply
I have a 1920 Webster’s dictionary that says inflation is a rise in the money supply. I have a 2006 Webster’s dictionary that says inflation is a rise in consumer prices. From this point forward, I will use “inflation” for its original definition (an increase in the money supply) and I will use “price inflation” to refer to a general increase in prices.
How did this “Newspeak” happen?
Inflation is harmful because it leads to a rise in prices. When everyone’s expenses are rising faster than their incomes as a result of the actions of the government and banking system, it is like a tax on the American people.
With the harm being a rise in prices, the focus on the topic of “inflation” shifted from the cause (inflation) to the effect (rising prices). And so, over a period of decades, everyone (news media included) shifted into speaking about inflation as a rise in prices.
Why don’t inflation and price increases correlate directly anymore?
You can take simple economic examples and draw a direct correlation from increasing the money supply to a rise in prices not complemented by a rise in incomes. These are usually fictional stories of a group of people being stranded on an island and creating their own economy. They will illustrate with great clarity that increasing the money supply takes from the regular person and gives to the banker or his friends (such as the government).
Now apply those concepts to our current economy and you will be so confused, it will be easy to surrender to saying, “Gosh this stuff is for super-geeks to figure out and I’ll just go with whatever is reported to me.” Of course, we’ve learned that following the crowd and getting your information from normal reporting sources is a sure way to (more…)
Is the Departure from 401(k) Perks a Bad Thing? June 17, 2009
Posted by reformedinvestor in Money.Tags: 401k, investing, self directed, Solo 401k
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You can’t pick up a newspaper today without hearing bad 401(k) news:
- Companies have cut their 401(k) matches, lessening incentives for employees to make contributions.
- 401(k) fees are confusing and exorbitant.
- Employer-sponsored plans are filled with nothing but dog investments packaged for layman investors.
With the glory days of the conventional 401(k) coming to an end, it’s no wonder that many investors have ditched or are considering ditching the 401(k) altogether.
But I ask, is the end of the 401(k) – as we know it – a bad thing?
I’m sure people like Suze Orman would (more…)
Could We End The Fed? June 14, 2009
Posted by Jeff Nabers in Money.Tags: 1207, audit the fed, bank, bernanke, congress, economy, end the fed, fed, federal reserve, greenspan, hr 1207, inflation, money supply, ron paul
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The U.S. House is going to debate the “Audit The Fed” bill. I don’t pay close attention to what’s being debated and passed on the floor of the Senate of House of Representatives because what’s usually written up, sponsored, and voted on isn’t even read by our Congressmen.
This Audit the Fed bill is a different story. It’s sponsored by a Congressman who some call 
(more…)
Are We Putting All Our Eggs in One Basket? June 10, 2009
Posted by reformedinvestor in Uncategorized.Tags: 401k, investing, stock market
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The Wall Street Journal reported on a study that $14 trillion dollars were being held in retirement assets in 2008. Sixty-five percent of that total was in employer-sponsored defined contribution plans and about 25% of those assets were held in IRAs. Now don’t you think that is a lot of dough entrusted into an institution that has royally failed us?
Am I “The Greater Fool”? June 2, 2009
Posted by reformedinvestor in Money, Self Directed IRA/401k, real estate.Tags: investing, real estate, stock market
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After reading an advance copy of Jeff Nabers’ new book, I learned more about the concept of “The Greater Fool.” This theory says that people buy things thinking that it will go up in price and value and that a “greater fool” will come along and buy the thing for more.
(more…)
Think you’re too old to get in on alternative investments? Think again May 22, 2009
Posted by reformedinvestor in Money, Self Directed IRA/401k.Tags: income, invest, investing, investment, real estate, retirement, wealth
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Mature investors close to retirement age are likely kicking themselves wishing they had pulled their money out of the market while they had the chance.
But too often these investors were told to “stay the course” and that “the market will come back.” Truth be told, no one knows for sure what the market will do.
But we do know is that you still have time to recover your losses – as long as you don’t just sit back and “hope” the stock market will recover. You have to do something about it.
Real estate can be a wonderful option for someone nearing retirement. With depressed housing prices, you may be able to find a home that offers positive cash-flow so that it provides a healthy monthly income. When the market recovers, you can consider selling the property only if the numbers add up and you will benefit from appreciation. If not, you can continue to cash-flow the property and create income for yourself for a long time.
So the point is that you’re never too old to consider alternative investments. A diversified investor is a smart investor at any age.
Deciphering the Bank Stress Tests May 20, 2009
Posted by Jeff Nabers in Money.Tags: bail out, bailout, bank, bank of america, bernanke, citi, citigroup, fed, geithner, government, leverage, stress test, treasury, wells fargo
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Here are a couple highlights for a recent post over at Daily Reckoning regarding the bank stress test results.
- Banks need about $75 billion to reach “adequate capitalization”
- “Adequate capitalization” is when common equity equals 4%
- Common equity being at 4% means a debt-to-equity ratio of 25-to-1
- The current bank needs do not factor in the potential for bank assets to lose their value
- The current bank needs are based on a rosy worst case scenario of (more…)
How to break America’s 401(k) addiction May 19, 2009
Posted by reformedinvestor in Money, Self Directed IRA/401k.Tags: 401k, investing, ira, retirement, self directed, Solo 401k, wall street
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[Contributed by reformedinvestor]
This is my favorite excerpt taken from the interview between Steve Kroft of 60 Minutes and Brooks Hamilton, who Kroft interviewed in his expose on 401(k)s. Hamilton is an expert in designing retirement plans for large corporations.
“The fact is that the typical 401(k) investor is a financial novice. They don’t know a stock from a bond. And we give ‘em a list of 20 or 30 mutual funds with really, really powerful names, you know, they sound like, ‘Gee, that’s where I want to have my money,’” Hamilton said.
“What are the, generally, the quality of the mutual funds in 401(k) plans?” Kroft asked.
“Mediocre,” Hamilton replied. “I’m being real honest with you, with half the funds on the list really dogs, what people would characterize as dogs shouldn’t be on the list to start with.”
So many Americans believed that the 401(k) would be the sure-fire way to safely save for retirement. In fact, it has been reported that 401(k) plans that have become the primary source of retirement income for 60 million Americans. Companies would match our contributions making it irresistible to sock away money in these mutual funds. But the truth is, as exposed by 60 Minutes a few weeks ago, that companies turned to 401(k)s as a cheap alternative to offering costly pension plans. This decision created millions of new employee investors in Wall Street – creating a boom on Wall Street and putting trillions of dollars of investable cash into the hands of unsophisticated investors.
In the 60 Minutes piece, however, experts in the field say (more…)
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