Why have Marx toys dropped in value?

“Why have Marx toys dropped in value?” you ask? Blame Millennials. Well, actually, my generation bears more of the blame for this one. Blame Gen X. The value of vintage toys tends to follow trends, and those trends don’t necessarily pass from generation to generation.

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Where Lionel trains are made

Lionel is an iconic American brand, and I often hear people refer to it as a made-in-the-USA company. But it’s been a long time since that’s been where Lionel trains are made. Or at least the majority.

It turns out Lionel has a bit of a history with that.

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Will baseball cards ever be valuable again?

“Will baseball cards ever be valuable again?” someone asked me recently. The answer is that it depends. Not all cards were valuable in the first place.

Part of the problem is there was a time when 90% of boys collected cards. Now they don’t. Prices dropped due to simple supply and demand.

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My counterpoint to Forget Frugality

I saw a reference this week to an editorial by Ramit Sethi called Forget Frugality. While he has some good points, I think some of his advice is counterproductive and even contradictory. He argues that you should focus on earnings and negotiation instead of trying to actively cut costs.

I really think you have to do a combination of the three, and you should start with what you have the most control over, which is your own budget. Here’s what I have to say about his seven strategies. Read more

I am not in jail.

The bank vice president apologized for calling the police on me.

That’s neither the beginning nor the end of the story, but it seems to me that police involvement of any kind is a sign that your real estate deal isn’t going as well as it could.

It all began with a Citibank loan officer named Aaron who promised me a smooth closing. In my view, being questioned by a uniformed police officer has no place in a smooth closing. And that wasn’t even the worst part of it, which troubles me.  Read more

Some stock advice from the Post-Dispatch

I found this warning about trying to time the markets in the St. Louis Post-Dispatch over the weekend. The warning was that 2009 was when the stock market bottomed out. Nobody predicted that was when it was going to happen. People who were buying stocks in 2009, when things looked bleak, are sitting much prettier than people who weren’t.

Although the economy as a whole is still a bit shaky, the stock market has had a historic run from 2009 to now. It just goes to show that the markets are fickle. Very fickle.

When the market was sinking fast and hard in 2009, I saw an opportunity. The fortune my grandfather made in the Great Depression is something of a family legend. (Where that money went is another legend that I’m not interested in speaking about.) That year looked like it might be the best opportunity I would see in my lifetime, so I sunk every dime I could into my 401(K) that year and encouraged my coworkers to do the same, though the most vocal of them were certainly talking about how much of a waste of time the 401(K) was, as far as they could tell.

I don’t know how many listened, but those who did probably are glad they did.

You can’t time the market. The best you can do is buy whatever is cheap. Take the emotion out of it. Set it up and make it automatic. Buy stock every payday by having automatic withdrawals, set a mix of blue-chip stocks, growth stocks, small company stocks, and bonds, and set the portfolio to rebalance. Some years it’s been the big companies that made the best return and some years it’s the small ones. Rebalancing forces you to buy low and sell high, to take last year’s profits and turn them into next year’s.

Remember. The market is fickle. It’s not God, and it’s not infallible. It’s actually very fickle and stupid. The way you beat a fickle and stupid market is by not being fickle. Don’t trust the market. It’s not trustworthy. Exploit the market.

I’ve had financial advisors try to sell me other gimmicky investments over the years. None has come close to matching the simple formula of evenly dividing holdings between those four categories in plain, simple no-load index funds. (You may have to settle for a managed fund for your growth holdings, but that’s OK.) Then rebalance. Whether it’s better to rebalance once a year or once a month or once a quarter is unclear. Your 401(K) may only give you one option anyway, so don’t obsess over it. The important thing is having a schedule.

When I was still in my 20s, I lost most of my retirement savings to poor management. I don’t intend to repeat that.

Oh, and one more thing: Don’t look at your financial statements. Toss them in a drawer in case you need them. The only time I look at them is when I’m trying to get a mortgage. Real estate is cheap, but stocks are expensive, so I’m buying real estate. I have to prove I have six months’ worth of mortgage payments stashed somewhere to get a loan, so that’s when I look at those statements–and then, just to make sure the big number is big enough, and that I’m putting it right-side up in the scanner.

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