When Warren Buffett speaks, it would do investors well to heed his advice. In his annual letter to Berkshire Hathaway shareholders, he offers this advice: Be un-American.
By this he means that the way to great returns is to go against the trends while investing in index funds. If Wall Street is fearful, be greedy. If Wall Street is being gready, be fearful.
Buffett also warns against over-trading. Too much activity depletes returns. There’s more information on Warren Buffett’s advice at Yahoo Finance.
The writer behind PFBlog.com has an interesting idea which will get more people blogging about personal finance. He has created the “PFBlog Network,” the purpose of which is creating a central location for personal finance blogs, hosted on MM’s domain.
I’m trying out the Network with the intent of discovering whether it can drive more traffic to my site. My plan is to feature selected posts from this blog on my PFBlog Network counterpart with the hope that readers will click through to here.
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It’s been about three months since Emigrant Direct started offering a 3.0% interest yield on their savings account, beating out ING Direct for the favored spot in the minds of many. I’ve held out with ING for these three months and witnessed my favorite raise their rates, though not quite to the top. ING Direct’s savings account now sites at a 2.6% yield.
I’ve decided, despite declaring I wouldn’t, to at least give Emigrant Direct a try. Yesterday, I filled out the online forms necessary for opening an account. This whole process has had mixed reviews, so I figured it would be better to try it for myself before making a judgment. I have started the process and I am now waiting for two test deposits to hit my checking account, at which point I can verify ownership.
As long as it’s easy to move money back and forth between Emigrant Direct and ING Direct, I’ll just move my money to where ever the best deal is. My timing might be perfect, because there is a rumor going around that Emigrant Direct is raising their rates heven higher, to 3.25% APY, this coming Monday.
I’ll post updates on the progress of opening my account continues, so readers can compare my experiences with those of other bloggers who have been writing about their problems with the newer bank.
There’s a new bankruptcy bill that’s up for vote in the Senate. if it passes, and it probably will, filing for bankruptcy will be harder. More specifically, fewer people will be able to file under Chapter 7, where creditors will get nothing and all debt is liquidated, and instead will be forced to file under Chapter 13, which provides for a five-year maximum repayment plan.
Some people believe the bankruptcy laws have been abused and there should be tighter restrictions. Advocacy groups claim that it’s a gift to credit card companies, who stand to gain $1 billion or more.
Here is a basic list of the changes between the old law and the new bill. You can read CNN’s story for more information.
* The test for qualification for bankruptcy
* Determining what you can afford to pay back
* The right for creditors to contest your claim
* Liability for the filing lawyer
Tech Insider from Yahoo Finance has listed Consumerism Commentary among its list of “Ten Money Blogs Everyone Should Read.”
If you’re visiting from that location, welcome! Feel free to browse through the archives (links down the right side of this page) and follow my thoughts and links on personal finance. Please don’t be shy; leave comments on any posts or email me, Flexo, at this domain name.
Want to see my numbers? You can view my latest account balances and my latest monthly income/expense sheet.
Suze Orman is appearing on PBS right now on her fifth special, Young, Fabulous, and Broke. I’ll live-blog the first hour of the program. You can catch her on WNET 13 New York or possibly your local PBS station. Show them your support.
Read on and reload throughout the hour! Keep in mind my server is a little slow when it comes to posting.
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It never felt so nice to be last on a list. New Jersey is ranked 50th when it comes to the average price of gasoline according to AAA. If you’re looking for more fun with gasoline price statistics, check out AAA’s Daily Fuel Gauge Report.
The good news is the station I usually go to offers regular unleaded for a few cents less than the New Jersey average. It still doesn’t make me feel that much better, knowing that I shell out close to $20 for what fairly recently cost just $11 or $12 — about three times a week. I’m glad I have a car that gets great gas-mileage.
Although my auto insurance will cost about $3,600 for the year, I can pay the total amount in six installments. Unfortunately, the first installment is higher due to the inclusion of a “deposit.” I need to send in $1,147 for my auto insurance this month. The good news is that I should be able to renegotiate my rate or shop around in May, when I’m out of the “state pool.” I hope that I’ll be able to find something significantly cheaper, but I know it’s going to be difficult.
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