Here’s a reason to elope
This calculator will make most married couples cringe.
It’s called AAPL vs. Your Wedding.
How much money would you have if you had invested your wedding expenses in Apple stock instead?
Source: interest.com
The idea that something coming out…that’s being offered with significant commissions, all kinds of publicity, the seller electing the time to sell, is going to be the best single investment that I can make in the world among thousands of choices is mathematically impossible.
Should I Prepay My Mortgage?
You’ll typically hear two different arguments here, and I’ll sum them up quickly without getting into the math:
1. You shouldn’t prepay your mortgage. You should invest the money instead because with loan rates so low, it’s feasible to outpace the interest rate with your return. Plus, your mortgage is a tax deduction.
2. You should prepay your mortgage. You’re guaranteed to save money over the long-term, whereas funds that are invested could actually lose value. Even though you’re reducing your tax deduction, you’re still guaranteed to come out ahead.
Most people with a lower risk tolerance fall into the second group. However, there’s one thing to consider that many people overlook…
Once you use funds to prepay your mortgage, that money is inaccessible until you sell your home or take out an equity loan (which you’ll be charged interest on, of course). In the event that you lose your income, the fact that you’ve prepaid your mortgage is of no use to you. Your mortage company will still want the regular monthly payment, and you’ve got to keep the lights on and the water running. The last time I checked, the electric company still won’t accept bricks from your home’s exterior as a payment. It is much easier to sell something that is conservatively invested than it is to sell your home and find a new place to live.
But, does that mean you shouldn’t prepay your mortgage? Not at all. What I’m suggesting is that you find some balance here. Instead of going all one way or the other, considering sending in a small amount of extra cash to pay down your mortgage a little faster, and put the rest somewhere that is easier to get to in the event that you need it.
“Well, Ronald, as they say, hindsight is always 20/…AGHGGGGHGHHHHH!!!!!! WHY…ARE…YOU…CHOKING ME??!!?!!?!”
(via newsweek)
Source: twentytwowords.com
Amazing art made from money (artist: Mark Wagner)
Wefunder
This rule was enacted to protect investors from making extremely risky investments if they didn’t have the capital to absorb the loss in the event that it failed. The events that lead to the Great Depression necessitated this legislation, but times have changed.
I really like how Wefunder is approaching this. They’re calling for a modification to allow everyone to participate in startup funding, while still keeping a safety net in place to protect unsophisticated investors from ruining their finances.
cnbc:
Why Nasdaq 3,000 Is ‘Bigger Deal’ Than Dow 13,000
While the Dow hitting 13,000 made big headlines earlier this week, the Nasdaq’s ascent to 3,000 could be the more significant of the two psychological milestones.
Good read.
Source: cnbc.com
Dow Jones industrial average closes above 13,000 for first time since financial crisis
The Dow Jones industrial average closed above the psychologically important 13,000 mark today for the first time since the financial crisis. The blue-chip index has climbed 1,000 points in just two months to hit the milestone for the first time since May 2008.
Did you sell everything at the bottom four years ago, or were you smart enough to see an opportunity to buy more? Remember, the name of the game is to buy low and sell high.
Source: Los Angeles Times
cnbc:
Size Matters: Could Apple Determine Market’s Fate?
One out of five hedge funds count Apple among their ten largest holdings, according to a Goldman Sachs survey of the industry.
Photo: Flickr: ping ping
I don’t know about you guys, but this makes me nervous…
Source: cnbc.com
