Archive - September 20, 2011

1
Why Advertising Affects Your Investment Decisions
2
Why Social Security is Not a Ponzi Scheme
3
What You Need to Know About Investing in China

Why Advertising Affects Your Investment Decisions

Today’s post is a little about psychology and how our brains work.  I don’t profess to be an expert in these areas but as a Financial Planner, I have learned a lot about how people think when it comes to money and most importantly how they are influenced in their investing decisions. 

Here is a question for you:  How much of what you see and hear on TV, in Newspapers or from family or friends influence your thinking as it relates to investing and the economy?  I’ll bet it is much higher than you think.  It’s not that it is …

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Why Social Security is Not a Ponzi Scheme

The definition

First, one must understand the definition of a Ponzi scheme. When one invests their money in a business they expect a certain return on their money based on the profit-making ability of that business. A Ponzi scheme is a fraudulent investment program in which the manager of the program promises a certain investment return and then uses new cash flows from new investors to pay the previous investors. To keep the program going the manager (or fraudster) needs ever-increasing cash flows from a greater number of new investors. The key to understanding what a Ponzi scheme is the …

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What You Need to Know About Investing in China

 

 

 

 

 

 

With so much uncertainty about the U.S. markets today, it’s perhaps easy to get tempted by markets abroad. But what’s the reality of investing in China?

While China seems like a “hot” place to put your money, the first thing we have to do here is take a reality check.

As Bert Whitehead points out, China represents a high level of investment risk once we get past the hype.

The country suffers from high levels of inflation (up to 20% to 25% in urban areas) and social unrest is a growing worry.

Most importantly, …

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