Category: Personal Finance

How Much Should Gold Sell For?


J.P. Morgan is reputed to have said, “A thing is worth what it will fetch.”  That seems objective.  Nonetheless, there are two fundamental premises that underlie the statement. Those premises may alter the statement’s “meaning” for you. “What it will fetch” is a synonym… Continue Reading “How Much Should Gold Sell For?”

The Alchemist’s Dilemma II


Despite its attraction, becoming rich by turning lead into gold is a flawed idea. Answer the question “If I succeed, then what?” If something scarce becomes common, its price falls. The price of lead and gold would become nearly identical. Lead might even be… Continue Reading “The Alchemist’s Dilemma II”

Liveware Fails


A computer systems designer’s view of the world is that the hardware works, the firmware works, and the software works. It is the liveware that causes the problems. It is not so different when it comes to investing. We are all, every one of… Continue Reading “Liveware Fails”

Life Insurance Lets You Die Neat


Will Rogers once said that, “Just because a thing is common sense, does not mean it will be common practice.” Not much has changed in the 80 years since. As an example, the most valuable asset most people have is the ability to earn… Continue Reading “Life Insurance Lets You Die Neat”

A Disturbing Question


All life insurance salespeople regularly meet people who are delusional about how much capital is needed to replace their career earnings. According to LIMRA, in Canada, insured husbands have enough life insurance to replace their income for 4.1 years, and wives for 4.6 years.  What… Continue Reading “A Disturbing Question”

Never Ask Why


Why is a power question. Why demands that the other person rationalize their behavior or result. It is never positive. In some, maybe many cases, it will cause your client to shut down. The most common users of “Why?” are authority figures or ones… Continue Reading “Never Ask Why”

What Is A “Good” Financial Plan?


I have been trying to understand the point of a financial plan for the last month or so. I have come to the conclusion that only a few people know and I am not certain that I am among them. I have talked to… Continue Reading “What Is A “Good” Financial Plan?”

Einstein Was Wrong


Einstein reputedly said “Compound interest is the most powerful force in the universe.” I suppose it is possible that he said that, but I doubt it. Compound interest was not a point of discussion when Dr. Einstein was young and was barely considered by… Continue Reading “Einstein Was Wrong”

Understanding Bonds


A bond is a collection of promises. It is not strictly money but rather, it is an instrument that can be exchanged for money. Probably. Its value at some future time, when you want to change it back into money, is unknown but it… Continue Reading “Understanding Bonds”

Life Is Like Juggling.


I found a scholarly paper on Juggling. ORG that points out that while many people can juggle 9 balls, and a few can juggle 12, no one can presently juggle 13 balls. It claims that 15 may be possible, but the problem is how… Continue Reading “Life Is Like Juggling.”

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