I certainly didn't mean to say that yields had been high for 100 years. Rather, they've been high for the past 30 years or so—from the late 1970s until the recent financial panic. (The link to the St. Louis Fed provides historical bond yields).
Rather, what I want to emphasize is that the bond coupon is pretty much all the return you're going to get over the long term. (During periods of falling rates you can earn higher returns in the short term. But if you're expecting higher returns than the coupon rate, I think you're likely to be disappointed.)
Good point on bond ladders. I actually have a post on the topic:
Bond yields seem to move in very long cycles. For the past 30 years (my whole adult life) bond yields have been falling. I expect that soon they'll start rising. Once they do so, I expect they'll be in a general uptrend for decades. That has some serious implications for what sort of bond investing will make sense going forward. I talk a bit about that here:
I took unique cardboard boxes with interesting writing on them and cut to coaster size. Than I dipped them in poly for a coating and BAM - hipster coasters.
These are GREAT! I needed some financial encouragement because i've been stressed financially about getting married in March. But your list gave me hope a little!
I'm a blogger, and I do use affiliate links (Amazon, mostly), so maybe this post is biased...
Personally, I don't have an issue with affiliate links or making a bit (usually that's what it is) of income for your efforts. To me, it's no different than a radio personality 'recommending' a product or service, and then saying "tell them that so-and-so sent you". People do that all the time in the real world, so why should the virtual world be any different?
As far as not clicking on affiliate links, and then buying the product without using the link, that's just not cool. It's kind of like having a Tupperware party and ordering product without crediting the distributor (or party host). If you are buying a product based on one person's review, you should do more research. When you make a buying decision, you should credit the person that convinced you to buy it.
I have seen a Scout Troop (credit to Troop 38 in Brick, NJ) roast an entire turkey in a cardboard box oven. Actually, I've seen them do this twice.
Facing with the flap end towards the chef (other side taped shut), it was lined with tin foil, a metal rack was inserted into two slits, and a pan of hot coals was at the bottom. A thermometer registered about 350 degrees. It took all day, but it was the best damn turkey I've ever eaten.
I was amazed that someone even thought about that, let alone got it to work. But pretty impressive!
Perhaps you should specify "marriage to an opposite-sex partner." My wife and I enjoy only some of the benefits that you listed, and we must create EXTRA tax returns to account for the discrepancy between state and federal tax laws.
For my son's first birthday, I made three round cakes and that required a large surface for serving. I cut the sides off a large cardboard box, taped them together and then covered them with foil. It was sturdy and large enough to serve from. The cardboard box to the rescue.
Problem is, credit card companies give you extra credit as long as you're maintaining THEIR card to a reasonable level. This doesn't take other credit into consideration at all. To add to this, you have to phone them up to put a block on raising your limit.... credit crunch here we come!!
I'm not married, but my partner and I have all but two of the benefits - 1. and 8. The rest are open to everyone. One will matter some day, and with 8, the only benefit that we know of is the single return - we are not paying more in taxes, and we use tax-prep software anyway.
The Lifeboard is a new book and kit product coming out in November 2010 that shows you how to journal and visualize, thus, achieve your goals. Check it out...www.thelifeboard.net
I just found out from my roommate that we have free heat for our apartment in New York which is positive. I know though that my parents who live in Boston understand that heat costs a lot for their home so they tend to split between having many blankets around the house for the days that it gets cold and keeping the heat on in certain parts of the home occasionally rather than all the time.
Do you have videos on how to remove car dents easily? My car has dents and I need to remove it because it’s too disgusting. I’m a girl and I can’t do it by myself to fix it. I need volunteers to help me. All I’m doing right now is reading some articles like this one http://www.fastlanes.net/category/car-care-tips that contains some car care tips.
I have to agree with Marc and Melanie and I'll even go a step further. I really don't believe Blockbuster's failure has anything at all to do with a business model or how you go about marketing via the web. Their failure is strictly their own doing, by treating their customers badly. They only have themselves to blame.
I despise Blockbuster and their failure actually brings me happiness. Bitter? Maybe, but they never got the $300 that they had the audacity to bill me for (back in 2002, for only 3 movies), this after the movies were turned in ON TIME. I cannot answer why they couldn't find them, but how does one prove that you actually DID turn them in? When the movies were found ("... in a box in the back), did they send me an apology? Of course not. THAT was their customer service at work, and that is what destroyed them.
Phil, I think your article provides a realistic approach to retirement planning. Too many financial salesmen promise high, unrealistic returns to "make the sale," instead of encouraging people to live within their means, as you do. However, I think the article makes two mistakes about bond investing.
1. You claim that over the past 100 years, bonds have always had annual yields more than 4%. According to Prof. Robert Shiller of Yale (and the now-famous house price indices), 10-year Treasury bond yields were below 4% from 1881-1911 and from 1926-1957, so two fairly long periods of time. Link to Prof. Shiller's data: http://www.econ.yale.edu/~shiller/data.htm
2. You mistakenly conclude that the yield on a bond is its only source of return, and that the investor spends all of their income, instead of reinvesting it. During periods in which the yield was greater than 4%, the extra income would likely be reinvested, so it would compound over time. Furthermore, it is unlikely that an investor would own a single bond in their portfolio. Even a simple bond ladder would improve the return, because the investor would be reinvesting maturities and interest income in excess of the 4% rule into the longest "rung" of the ladder, which is above 4% for long periods of time (though also below it, see #1 above).
A better tip to save money in car maintenance is to follow the owners manual. Most new cars made within the last 10 years no longer require oil changes every 3000 miles. Many can go anywhere from 5000-10000 miles. While it is good advice to check your tires frequently, don't follow the old logic of when to service the car, and don't do things if your mechanic says you should. Check the maintenance schedule in the owners manual! Even the service departments at the dealers try to sell you things you don't need.
@Hannah
I tried to delete your comment, but I couldn't figure out how :).
Seriously thought you bring up a great concern. One that we bloggers need to hear.
I would, however, disagree "but most of it is rather dishonest and underhanded". There is probably some dishonest out there, but good bloggers only promote products they trust. But, there is no doubt that there may be conflict of interest.
I would rather see Google ads than affiliate links. I will go out of my way to not click on them, even going to amazon or wherever in a new browser and looking the thing up myself.
I also have learned not to trust bloggers that swear that whatever they are reviewing is fabulous. I had a bad experience once where I bought something I'd seen recommended, then come back to leave a comment about my experience. What I'd found was that the product wasn't bad, but didn't serve someone with my situation. I wasn't overly negative, just cautionary, but the blogger didn't post my comment, nor was there anything buy comments praising the web service I had bought. That turned me off greatly from blogger reviews. I didn't feel scammed so much as mislead.
I don't have a problem with bloggers making money, but most of it is rather dishonest and underhanded. If that's the only way you can make money blogging, it is clearly not my thing.
Jennifer, Can I have the bread maker? I've always wanted one because I imagine I will save so much money by baking my own bread. (In reality I'm sure I would be too lazy to use it!) Never mind :)
It is going to be more expensive for us this year. Due to overhead costs, my husband moved his cabinetry shop back to our home. We need to add more insulation to the garage and figure out the best way to heat it. But with the cost of everything rising, it will be more expensive. For the first time, I am considering the LEAP program from the county to help us out.
I just hope the farmer's almanac is correct this year with predicting warmer temps.
This is fabulous! When I was living in a 500 sq foot apartment in Boston with serious seasonal affective disorder, I also discovered Leslie Sansone DVDs and it was like a miracle. Now that I live in sunny Texas, I still use them year round (especially when the summers are too hot to walk outside). Highly recommended!
I certainly didn't mean to say that yields had been high for 100 years. Rather, they've been high for the past 30 years or so—from the late 1970s until the recent financial panic. (The link to the St. Louis Fed provides historical bond yields).
Rather, what I want to emphasize is that the bond coupon is pretty much all the return you're going to get over the long term. (During periods of falling rates you can earn higher returns in the short term. But if you're expecting higher returns than the coupon rate, I think you're likely to be disappointed.)
Good point on bond ladders. I actually have a post on the topic:
http://www.wisebread.com/laddering-for-higher-more-stable-returns
Bond yields seem to move in very long cycles. For the past 30 years (my whole adult life) bond yields have been falling. I expect that soon they'll start rising. Once they do so, I expect they'll be in a general uptrend for decades. That has some serious implications for what sort of bond investing will make sense going forward. I talk a bit about that here:
http://www.wisebread.com/when-interest-rates-head-up
Thanks for your comment!
I took unique cardboard boxes with interesting writing on them and cut to coaster size. Than I dipped them in poly for a coating and BAM - hipster coasters.
These are GREAT! I needed some financial encouragement because i've been stressed financially about getting married in March. But your list gave me hope a little!
I'm a blogger, and I do use affiliate links (Amazon, mostly), so maybe this post is biased...
Personally, I don't have an issue with affiliate links or making a bit (usually that's what it is) of income for your efforts. To me, it's no different than a radio personality 'recommending' a product or service, and then saying "tell them that so-and-so sent you". People do that all the time in the real world, so why should the virtual world be any different?
As far as not clicking on affiliate links, and then buying the product without using the link, that's just not cool. It's kind of like having a Tupperware party and ordering product without crediting the distributor (or party host). If you are buying a product based on one person's review, you should do more research. When you make a buying decision, you should credit the person that convinced you to buy it.
Just my two cents.
I have seen a Scout Troop (credit to Troop 38 in Brick, NJ) roast an entire turkey in a cardboard box oven. Actually, I've seen them do this twice.
Facing with the flap end towards the chef (other side taped shut), it was lined with tin foil, a metal rack was inserted into two slits, and a pan of hot coals was at the bottom. A thermometer registered about 350 degrees. It took all day, but it was the best damn turkey I've ever eaten.
I was amazed that someone even thought about that, let alone got it to work. But pretty impressive!
Perhaps you should specify "marriage to an opposite-sex partner." My wife and I enjoy only some of the benefits that you listed, and we must create EXTRA tax returns to account for the discrepancy between state and federal tax laws.
Marriage really is great just for the fact that you have someone to lean on. And someone else to blame :) !
If you've got the right partner - you can handle any financial challenges that come your way.
Great post!
For my son's first birthday, I made three round cakes and that required a large surface for serving. I cut the sides off a large cardboard box, taped them together and then covered them with foil. It was sturdy and large enough to serve from. The cardboard box to the rescue.
Besides cardboard, I've use repurposed shoe boxes for my crafts instead of the expensive plastic shoebox sized totes, why not use the real thing.
Problem is, credit card companies give you extra credit as long as you're maintaining THEIR card to a reasonable level. This doesn't take other credit into consideration at all. To add to this, you have to phone them up to put a block on raising your limit.... credit crunch here we come!!
I'm not married, but my partner and I have all but two of the benefits - 1. and 8. The rest are open to everyone. One will matter some day, and with 8, the only benefit that we know of is the single return - we are not paying more in taxes, and we use tax-prep software anyway.
The Lifeboard is a new book and kit product coming out in November 2010 that shows you how to journal and visualize, thus, achieve your goals. Check it out...www.thelifeboard.net
I just found out from my roommate that we have free heat for our apartment in New York which is positive. I know though that my parents who live in Boston understand that heat costs a lot for their home so they tend to split between having many blankets around the house for the days that it gets cold and keeping the heat on in certain parts of the home occasionally rather than all the time.
I've had cardboard laundry basket since I've moved out from my parents house few years ago. It's a very good idea indeed
Do you have videos on how to remove car dents easily? My car has dents and I need to remove it because it’s too disgusting. I’m a girl and I can’t do it by myself to fix it. I need volunteers to help me. All I’m doing right now is reading some articles like this one http://www.fastlanes.net/category/car-care-tips that contains some car care tips.
I have to agree with Marc and Melanie and I'll even go a step further. I really don't believe Blockbuster's failure has anything at all to do with a business model or how you go about marketing via the web. Their failure is strictly their own doing, by treating their customers badly. They only have themselves to blame.
I despise Blockbuster and their failure actually brings me happiness. Bitter? Maybe, but they never got the $300 that they had the audacity to bill me for (back in 2002, for only 3 movies), this after the movies were turned in ON TIME. I cannot answer why they couldn't find them, but how does one prove that you actually DID turn them in? When the movies were found ("... in a box in the back), did they send me an apology? Of course not. THAT was their customer service at work, and that is what destroyed them.
I hate them.
Phil, I think your article provides a realistic approach to retirement planning. Too many financial salesmen promise high, unrealistic returns to "make the sale," instead of encouraging people to live within their means, as you do. However, I think the article makes two mistakes about bond investing.
1. You claim that over the past 100 years, bonds have always had annual yields more than 4%. According to Prof. Robert Shiller of Yale (and the now-famous house price indices), 10-year Treasury bond yields were below 4% from 1881-1911 and from 1926-1957, so two fairly long periods of time. Link to Prof. Shiller's data:
http://www.econ.yale.edu/~shiller/data.htm
2. You mistakenly conclude that the yield on a bond is its only source of return, and that the investor spends all of their income, instead of reinvesting it. During periods in which the yield was greater than 4%, the extra income would likely be reinvested, so it would compound over time. Furthermore, it is unlikely that an investor would own a single bond in their portfolio. Even a simple bond ladder would improve the return, because the investor would be reinvesting maturities and interest income in excess of the 4% rule into the longest "rung" of the ladder, which is above 4% for long periods of time (though also below it, see #1 above).
A better tip to save money in car maintenance is to follow the owners manual. Most new cars made within the last 10 years no longer require oil changes every 3000 miles. Many can go anywhere from 5000-10000 miles. While it is good advice to check your tires frequently, don't follow the old logic of when to service the car, and don't do things if your mechanic says you should. Check the maintenance schedule in the owners manual! Even the service departments at the dealers try to sell you things you don't need.
@Hannah
I tried to delete your comment, but I couldn't figure out how :).
Seriously thought you bring up a great concern. One that we bloggers need to hear.
I would, however, disagree "but most of it is rather dishonest and underhanded". There is probably some dishonest out there, but good bloggers only promote products they trust. But, there is no doubt that there may be conflict of interest.
I would rather see Google ads than affiliate links. I will go out of my way to not click on them, even going to amazon or wherever in a new browser and looking the thing up myself.
I also have learned not to trust bloggers that swear that whatever they are reviewing is fabulous. I had a bad experience once where I bought something I'd seen recommended, then come back to leave a comment about my experience. What I'd found was that the product wasn't bad, but didn't serve someone with my situation. I wasn't overly negative, just cautionary, but the blogger didn't post my comment, nor was there anything buy comments praising the web service I had bought. That turned me off greatly from blogger reviews. I didn't feel scammed so much as mislead.
I don't have a problem with bloggers making money, but most of it is rather dishonest and underhanded. If that's the only way you can make money blogging, it is clearly not my thing.
Jennifer, Can I have the bread maker? I've always wanted one because I imagine I will save so much money by baking my own bread. (In reality I'm sure I would be too lazy to use it!) Never mind :)
It is going to be more expensive for us this year. Due to overhead costs, my husband moved his cabinetry shop back to our home. We need to add more insulation to the garage and figure out the best way to heat it. But with the cost of everything rising, it will be more expensive. For the first time, I am considering the LEAP program from the county to help us out.
I just hope the farmer's almanac is correct this year with predicting warmer temps.
@Romeo
Thanks for the heads up. I'm guessing that a 7,500 word article probably has a lot of mistakes.
This is fabulous! When I was living in a 500 sq foot apartment in Boston with serious seasonal affective disorder, I also discovered Leslie Sansone DVDs and it was like a miracle. Now that I live in sunny Texas, I still use them year round (especially when the summers are too hot to walk outside). Highly recommended!
probably a year ago, alice.com has the best deal... but now prices are higher compare to our local walmart, kroger and publix.
shampoo i buy is $4 at alice while it's 2.5 at walmart.
same with soap, $2 higher.
diapers, toilet paper, etc.
i like the concept of alice.com... but not enough for me to switch prices are higher as of 10/6/2010.