Archive - August 1, 2009

1
How to Turn $5,000 into $33 Million
2
Distinguishing Between Investing Skill and Random Chance
3
How to Lower Your Health Insurance Costs
4
Putting Your Money Where Your Mouth Is
5
Help Me “Show You the Money”

How to Turn $5,000 into $33 Million

With a headline like that I bet you’re thinking this is one of those wild & crazy get rich schemes… which it may be, but it’s mostly a demonstration of the great benefits of three factors that can work in your favor in building a legacy:

  • compounding interest
  • Roth IRA tax laws (including stretch provisions)
  • time

What follows is an example of how you can make those three factors work together to create this $33 million legacy.

How It All Started…

$5000 by AMagillOnce upon a time, there was this guy named Joe. He was 20 years old, working part-time making decent …

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Distinguishing Between Investing Skill and Random Chance

Distinguishing Between Investing Skill and Random Chance

Several weeks ago I found time to read Nassim Nicholas Taleb’s Fooled By Randomness. This book, entertaining and eminently readable, is something between a memoir and a treatise on the pervasive human tendency to discern patterns in places where they don’t actually exist. Among many examples, he shows how easy it is to mistake a lucky idiot for a skilled investment manager.

Here are some of my favorite quotes from Fooled By Randomness:

As a practitioner of uncertainty I have seen more than my share of snake-oil salesmen dressed in the garb of scientists, particularly those operating in

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How to Lower Your Health Insurance Costs

The healthcare debate rages on… will the Obama administration succeed where the Clinton Administration failed?  Will the new healthcare system cost you more or less?

Too soon to tell, says this fee only financial planner.

In the meantime, if you’re an individual looking for insurance there are a few critical  things you need to know. Once you leave a group insurance policy, (including Cobra) within which the government prohibits discrimination against people by age or health condition, all bets are off. You will be “underwritten,” which means that an insurance company only offers you coverage if they think they’ll get …

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Putting Your Money Where Your Mouth Is

People who have a passion manifest it in how they live their lives.  This manifestation often comes in the form of deeds rather than words.

An example is Scott Staub.  I don’t really know Scott – just sat next to him on a plane.  But we chatted during our flight and got to talking about what we both do for a living.  Scott is Vice President of Fund Development for EMQ Children & Family Services.  His employer advocates for children to put them with good families and reunite them with their own families when practical.  It’s hard not to be …

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Help Me “Show You the Money”

Help Me - "Show You The Money"I recall the locker room scene in the movie Jerry McGuire where Tom Cruise was struggling to keep his only sports management client, Rod Tidwell. Jerry was pleading with Tidwell, “Help Me Help You!”

Tax preparation is an area where tax preparers need your help to help you. Sometimes items can fall through the cracks and end up costing you tax dollars. The way to prevent this is by proactively talking with your tax preparer. While I work very hard to know my clients, sometimes CPAs don’t have the luxury, due to the enormous number of returns prepared, to know …

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