Thinking honestly about savings

March 1, 2009

It's time for an uncomfortable conversation about the facts of life.

Recent columns

• High gold prices unlikely to hold

  March 1, 2009

  Gold is where investors go when they are scared—scared about war, scared about economic meltdowns or scared about runaway inflation.

• Retirees face uncertain future

  February 25, 2009

  Bernard Abrams feels like he's immersed in a landfill of some of the market's most odious investments.

• Retirees face uncertain financial future

  February 25, 2009

  Bernard Abrams feels like he's immersed in a landfill of some of the market's most odious investments.

• Stimulus plan's $8,000 housing credit can be sweet in the right circumstances

  February 22, 2009

  Receiving $8,000 to buy a house is a tempting deal.

• Abandon all hope ye still awaiting market rebound, then healing can begin

  February 18, 2009

  After climbing more than 20 percent during the so-called Obama rally in late November, stocks lost it again Tuesday and dropped to nearly the worst levels of this harsh bear market.

• Researchers say economic downturn may be longer than historical stock market averages suggest

  February 15, 2009

  Are you too optimistic or pessimistic about the economy and stock market?

• Consumer relief comes in access to credit

  February 11, 2009

  For a clue into how the latest financial rescue package might affect consumers and preserve jobs, take a look at how investors voted Tuesday.

• International stock expectations remain cautious

  February 8, 2009

  What a difference a year makes.

• Unusual times make rebalancing a different, difficult task for investors

  February 8, 2009

  Normally at this time of year, financial advisers would be running their clients' money through an annual ritual that's almost a religion in the investing profession.

• Old rules about dividends not safe in tough times

  February 4, 2009

  A favorite strategy in vicious stock markets is to buy dividend-paying stocks and wait for the market to become benevolent again.

• Diversification doesn't always insulate investors, and details matter

  February 1, 2009

  There is a sense of betrayal among investors who have been conscientious.

• Seeking a hot 'safe' bet? Hot is never safe

  January 28, 2009

  We've entered a period when people can seriously hurt themselves.

• Yes, you lost money, but you don't have to lose all control

  January 25, 2009

  Losing money on investments hurts, but what might really be eating at you is feeling a loss of control.

• Your future may include more taxes, fewer benefits

  January 21, 2009

  President Barack Obama wants you to take on responsibility, and it might be more than you can imagine.

• Your future may include more taxes, fewer benefits

  January 21, 2009

  President Barack Obama wants you to take on responsibility, and it might be more than you can imagine.

• Be wary of focusing on bond index funds

  January 18, 2009

  QYou recently wrote about conservative investing in bond funds and mentioned that FPA New Income Fund had been honored by Morningstar. I wonder why you didn't suggest people invest in a bond index fund.

• Earnings likely to forecast dreary economic climate

  January 14, 2009

  Get ready to have your nerves tested once again.

• How to save for college during a recession

  January 9, 2009

  5 tips on saving for education

• Tune out hysteria to build your wealth

  January 7, 2009

  5 tips on recession investing

• Bonds may be a shield, but they're still risky

  January 4, 2009

  Sometimes investors get restless when they are cozy.

• Can't help being down on stocks this year

  December 31, 2008

  How many ways can you say "awful"?

• Investing rules rarely worked in year of exceptional losses

  December 28, 2008

  It was a year of disillusionment, betrayal and excruciating pain for investors.

• Expecting fortunes to improve

  December 24, 2008

  Good riddance.

• Do your homework on money managers

  December 21, 2008

  From worrying about banks and a financial meltdown, investors are now wondering if they can trust the person investing their money.

• Darkest days for stocks often give way to brightest period

  December 17, 2008

  If you can find a star in the sky tonight, close your eyes and make a wish.

• It's a balancing act

  December 14, 2008

  Sending a child to college is a retirement issue.

• Start a savings plan in case of layoff

  December 10, 2008

  Jobs are evaporating as nervous employers cut costs by slashing payrolls.

• Mild bout of deflation manageable, but an extended round carries more risks to economy, investors

  December 7, 2008

  The unnerving word of the day is "deflation."

• Little to save single women struggling in tough economic times

  December 3, 2008

  As people lose jobs in the recession, single women are going to be among the most vulnerable.

• What now? Resist urge to flee or freeze

  January 22, 2008

  Are you OK?

• Housing tilting economy down

  January 7, 2008

  It's not a pretty picture, and it didn't have to come to this.

• Long-short funds flopped during slump

  October 14, 2007

  Maybe plain-vanilla stock and bond mutual funds will do the job after all.

• Racial divide in savings

  October 12, 2007

  If middle- and upper-income African-Americans continue to save and invest the way they tend to do, they stand to struggle financially through retirement in greater proportions than whites at similar income levels.

• Investors find boring often can be fruitful

  October 7, 2007

  Q. I am 24 and have been saving in my 401(k) for about a year, but I find mutual funds boring. So I started paying attention to stocks. I discovered that I was good at spotting those that would do well. For a while, I just made a mental note of stocks I liked, but when I saw them go up I decided to buy my first stock. It was Garmin, which makes navigation devices for cars. I bought it for $70 and I made money immediately. Now I'm wondering how to decide when it's time to sell. Are there some rules of thumb?

• Make up lost time with swift, smart action

  September 30, 2007

  Q. I have only $20,000 saved for retirement and am 50 years old. I know I have to get going, but my head is swimming with things I have heard about a deferred compensation plan and a 403(b) variable annuity at work. I'm a teacher, and can use either of the plans. But some people at work say the annuity isn't good and the deferred compensation plan is better. I tried to get help from a person in benefits, but they sounded like they were talking in code. So I haven't been doing anything, although I did pay off my house. What should I do?

• Act early to prevent foreclosure

  September 16, 2007

  Keep the wolf away from the door.

• Look at jobs, confidence for investing hints

  September 9, 2007

  According to Wall Street folklore, investors can expect results for September to turn out like the first trading day of the month.

• Saving money for college? Study aid rules

  July 15, 2007

  Q You recently warned a parent not to let his son open a Roth IRA because it could keep him from getting financial aid for college. We opened a UTMA account for our niece some time ago and wonder if that would reduce the amount of financial aid she could receive when she goes to college.

• Fears crawl into minds of investors

  July 9, 2007

  Call it the "cockroach theory."

• Fears crawl into minds of investors

  July 9, 2007

  Call it the "cockroach theory."

• Roth can be expensive gift for 16-year-old

  July 8, 2007

  Q. My wife and I are thinking about opening a Roth IRA [individual retirement account] for our 16-year-old son. I've paid attention, as you have suggested that small savings early in life can turn into million-dollar nest eggs. Is there any reason why we shouldn't open a Roth IRA for our son?

• Emerging markets ready to step back

  July 1, 2007

  Your emerging-market fund might have climbed 50 percent during the last 12 months, but that doesn't mean it will be immune from the interest rate worries, housing woes and subprime mortgage angst that have tainted U.S. stocks recently.

• Treasury yield's rise above 5% unnerves market

  June 8, 2007

  Investors ran for the exits Thursday, second-guessing the enthusiasm that has powered the stock market to one record-breaking high after another the last few weeks.