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Weekend Reading

This article was written by in Link Sharing. 6 comments.

Here are a few articles I’ve spotted recently.

Are you superstitious? Superstitions can extend into your finances; the belief that the stock market’s performance on January 1 signals the performance for the entire year can be classified as a superstition. Frugal Zeitgeist offers a compilations of several superstitions and their origins.

I’m a customer of Amazon.com’s Prime service. It provides free two-day shipping on all items, not just those priced at $25 and above. A myth is circulating that Amazon Prime members are shown higher priced items by default, resulting in these customers spending more money than those without Amazon Prime. Money Beagle debunks the Amazon Prime myth.

Get Rich Slowly offers advice on fending off financial trolls. It seems like there are always some people who insist on attempting to sabotage your ideas, your reputation, or your finances. I like the way J.D. presented the idea that we have internal trolls, as well. Sometimes we must battle ourselves.

Krantcents explains how access to information and entertainment is ubiquitous.

My choices for the best credit cards in 2012 and thoughts on industry trends for the year was included in the latest Carnival of Personal Finance at Wealth Pilgrim. If you’re a blogger interested in hosting the Carnival, find out more here.

With the results of a customer satisfaction survey, Insure.com has developed a tool that lets you browse insurance companies to determine how they compare with each other from the customers’ perspective. The companies are rated on a five-star scale among several different criteria, including claims processing, customer service, and value. The tools covers auto, home, life and health insurance.

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Last week, a photograph by Andreas Gurksy, Rhein II, was sold at auction for $4,338,500 to an anonymous buyer. The record-breaking sale allowed Gursky to reclaim fame as the artist whose work has claimed the highest price paid for a photograph. This auction was a secondary market sale. As in most art auctions commanding high prices and press attention, the artist sees little if any financial benefit.

What do you think of the image? Is it art? Is it art you would consider to be worth $4 million? $1 million?

Rhein II

It wasn’t this lowly jpeg that was sold. Seeing the print — considered a very important part of the art of photography — is an experience in itself. To see this work in person, you would be gazing at a print eight feet by twelve feet. Even today’s relatively advanced digital cameras, devices used by professional wedding photographers and amateurs like me around the world, wouldn’t be able to produce a print that size with quality and resolution. This image was most likely produced with a large format camera using analog film.

There’s only one way to determine the value of a work of art: offer it to a wide audience of potential art buys and determine what at least one of them would be willing to pay to take it home. Looking beyond the simple supply-and-demand answer, any piece of art is able to fetch a certain price at auction due to only a few factors. Some aspects moving a price aren’t related to the specific piece of art as much as the artist.

  • Buyers look for a works by photographers who have a history of creating art in demand by galleries and collectors.
  • Photographers who were trained by other artists who have been successful are also rewarded for their potential.
  • In most cases, buyers believe that the art will be worth more in the future, and view the purchase as an investment.

Some reasons behind a price relate to the process of creating the art. It’s only recently that photography has become accepted as art, color photography even more recently, and many artists still consider photographs with digital manipulation in editing software like Photoshop not art at all. Photography still has a long way to go before it’s fully accepted alongside oil painting and sculpture as art. That’s reflected in value as well; while this $4 million price for Rhein II is a nice sum, it falls short of the Running Man I sculpture by Alberto Giacometti, which fetched a sale price of $104.3 million recently.

The fact that this image was captured using a large format camera, a process that is significantly more involved than pointing and shooting, helps to add to the value, but many photographers, particularly landscape artists and architectural photographers, still use large format cameras. The type of camera cannot be the sole reason driving the value of art, but it is an important factor when an artist is striving for the best quality possible.

Although this image looks simple, a lot of planning went into its creation. Artists carefully plan the time and place, bring the right equipment, and without a digital camera, do not have the luxury of taking a flurry of snapshots to choose the best image of one hundred on a memory card. Often, a work of art is part of a series or a study on a particular theme, and in the case of Rhein II, the photograph falls within a series about the river in Germany.

Ken Rockwell, a respected but divisive photographer who has one of the most popular websites about the art, has this to say about the photograph.

It is valuable because it is art, not just a photo. Rules are worthless. If [Gurksy] was just a photographer instead of an artist, he would have been crippled by the nonexistent “rule of thirds” myth, and put the horizon someplace else. In his case, the horizon slams right through the middle, which adds to the power by giving a sense of unease. Our minds ask “what’s up with this? This is so barren and empty; where is this place?”

Likewise, if it’s not captured on film, it is not art. Artists create art, not photographers. Artists may choose to work in photography, but being an artist is what matters above all…

If shot with a digital Nikon or Canon like amateur photographers, it would not have been art. If he used a zoom lens or many modern prime lenses, their distortion would have subtly curved the lines, weakening and destroying the artist’s work.

Ken doesn’t point out that Gursky did digitally manipulate the image after making the capture. The view portrayed by the image above doesn’t exist in nature. Gursky removed people, dogs, and a building from the captured image to create the art.

Nevertheless, the image is so simple that it looks like something anyone can capture, standing beside any river in the world on any dreary day. One nature of art is the ability to stir emotions in a spectator, even if that emotion is anger in response to a sale price, frustration that an image of mostly straight lines and solid colors can be considered art, jealousy that another photographer’s images wouldn’t fetch such a price, confusion about why it’s acceptable for some digitally manipulated images to be considered art while others aren’t, or questioning whether the image is art at all.

This describes the industry reaction to the sale. The Luminous Landscape forums are buzzing with comments about this sale and the image from professional photographers — mostly commercial photographers who dabble with artistic photography, specializing in medium and large format cameras.

Why spend so much money on art?

With so many problems in the world, why spend $4 million on one piece of art rather than using that money to build a school or feed starving children? This is a fair question to ask. At this high level of sophisticated art acquisition, there is a big emphasis on the investment aspect of art. With the photographer still living and with photographic art still being rare compared to other visual art methods, there is a good possibility of the value of this work increasing over the very long term.

Although it’s common to question the intent of purchasing a work of art for $4 million, investors who dedicate the same amount of money to a company to become an owner of that company usually won’t face the same questions about the virtue of their investment. Both buying art and buying a company are capitalistic endeavors, but while the value of a company can be easily justified by looking at a set of financial reports, the art is more difficult to rationalize. Regardless of the reasons, the value of a company or a work of art is whatever someone is willing to pay.

By investing in art, it sends a signal that art, in general, is worth society’s attention. Art is an important part of civilized society, and both reacts to and inspires thought that drives a society forward.

Photo: Andreas Gursky/Christie’s Images, Ltd., 2011
NPR, Seattle PI, Ken Rockwell

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Today on the Consumerism Commentary Podcast, Bryan talks with Mike Egan, the author of Your Stronger Financial Future.

In the book, Mike details several popular myths about social security, saving, and investments, and then explains the truth about each one, giving the reader solid knowledge and formulas about how much to save for retirement.

Consumerism Commentary Podcast #127
Your Stronger Financial Future: S05E23 / 151

DownloadRSSiTunes

Table of contents

[00:00] Introduction from Bryan J Busch
[00:33] Interview with Mike Egan
[00:47] Misconceptions
[02:37] Social Security isn’t a ponzi scheme
[07:37] Raising the retirement age
[10:11] Contributions to Social Security?
[11:40] Retirement savings
[14:05] Good debt as an investment
[15:48] 7-year mortgages
[17:31] Emergency fund
[23:12] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

Theme music by Mindcube.

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The concept of multitasking, for a person, is a myth. When someone says they are multitasking, they are quick task shifting. We can move our attention quickly from one task to the next, and shift back again, but it’s practically impossible to focus on two different things at the same time. To excel at anything requires undivided attention. Just ask an athlete who performs at world-class levels; the intense focus required to achieve at high levels doesn’t allow for multitasking.

It doesn’t take an Olympic athlete’s training and dedication to be successful when paying off debt, though. A solid debt repayment plan does not require 100% of someone’s focus. Should is require 100% of someone’s cash flow, though? To focus on paying off debt, should households suspend other financial goals like saving for retirement and setting up an emergency fund?

Saving in an emergency fund

An emergency fund is so important that it should be at least started before embarking on a plan to aggressively pay off debt. Without an emergency fund, if an emergency were to befall a household while all extra cash is designated for paying off debt, the only option for meeting the needs of that emergency might be going further into debt. With an emergency fund, you may have delayed the target date for being fully debt-free, but if an emergency occurs you’ll be able to handle at least part of the financial problem. A cash cushion will make paying off debt easier and will reduce stress levels.

If you can save just $1,000 in a high-yield online savings account, you’ll start a debt reduction plan from a much more stable position. It would be even better to have one month’s expenses saved away, with the rule that these funds would not be touched unless faced with a true emergency. Although the Debt Snowball and the Debt Avalanche prescribe putting all extra cash flow to paying off debt, establishing an emergency fund should be a parallel goal.

Saving for retirement

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Working With Financial Planners and Advisers

by Flexo
Financial Blueprint

Over the past few weeks, I’ve been working on a series of articles about working with financial planners and advisers. The information about this aspect of the financial industry can be confusing, considering the variety of certifications, similar-sounding services, and hidden agendas. The first thing to consider is whether to work with a financial planner ... Continue reading this article…

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Last Minute Tax Filing Tips

by Flexo
Tax

With one week before the deadline, many people are just starting to think about filing their tax return. The problem I’ve often encountered with waiting to the last minute is it’s easy to miss important items. Many years ago, I filed in the manual style: my only tools were a calculator and pencil. Although my ... Continue reading this article…

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Podcast 101: The Squeaky Wheel, Guy Winch

by Flexo

Today’s guest on the Consumerism Commentary Podcast is Dr. Guy Winch, author of The Squeaky Wheel: Complaining the Right Way to Get Results, Improve Your Relationships and Enhance Self-Esteem. Guy received his doctorate in clinical psychology from New York University in 1991 and completed a postdoctoral fellowship in family and couples therapy at NYU Medical ... Continue reading this article…

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The Psychology of Selling a House for a Loss

by Flexo

There are two reasons a potential home seller might balk at selling his house in a down market. First, if the value of the house has decreased past the amount he owes on the mortgage, he’s underwater, and would owe money to the bank after he sells. But even if he has paid off the ... Continue reading this article…

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