moneyFYI
Financial Freedom Is Merely Organized Common Sense
Tag: financial literacy
The Gini Index
Summary: The true meaning of a given statistic is not usually obvious. Government programs cost cash and reduce resources available for other purposes. The Gini Index, measuring income and wealth dispersion, was created by a sociologist not by an economist. Gini is a relative… Continue Reading “The Gini Index”
Share this:
Preparation For Money Should Begin Early
“Big Lottery winner now broke.” Is a familiar and none too rare story. Why is it common? I like to tell people about the conservation laws in science. In physics, energy and momentum they are in the form “Energy can be neither created nor… Continue Reading “Preparation For Money Should Begin Early”
Share this:
Financial Success Is A Process
There are many things people want and fewer that they need. Each of us has limited resources with which to get these. The trick is to get what you need and as much as you can of what you want, and all with what… Continue Reading “Financial Success Is A Process”
Share this:
Regulation Feels Good, But
The need for regulation of financial advisors arises from an abdication of responsibility by the people who may suffer the greatest cost. That cannot end well. There are two thoughts that matter. The client is the sole planner, everyone else is a helper. If… Continue Reading “Regulation Feels Good, But”
Share this:
Is The Stock Market Rigged?
Michael Lewis’ new book Flash Boys has a great title and the answer “Yes!” to the question. By way of disclosure, I have not yet read it, but I have seen reports and have had an interest in High Frequency Trading, (HFT) for some… Continue Reading “Is The Stock Market Rigged?”
Share this:
Maybe the 1% Are Not So Bad
On Thursday, 27 March, William Watson in the Financial Post observed that the American disparity of incomes is interesting and assessing the reason is more so. His question is essentially, “If higher income is due to more skill, what’s the problem?” He refers to… Continue Reading “Maybe the 1% Are Not So Bad”
Share this:
Fuzzy Understanding Hurts Decisions
One of my sons once accused a sister of being a relativist. Her reply was a classic, “You can pick your friends, but you are stuck with your relativists.” You should be aware when you are stuck with a relativist. You have choices as… Continue Reading “Fuzzy Understanding Hurts Decisions”
Share this:
Building Wealth On Purpose
Building great wealth is not easy and most people have insufficient motivation and persistence and too few of the skills. As an alternative though they should learn what they need to become wealthy enough. Wealthy enough is the amount that gives you the comfort,… Continue Reading “Building Wealth On Purpose”
Share this:
Financial Tools Are In Aisle 17
A tool is a device or method that assists us in achieving some goal. In older times, it was always physical. Not so much now. The internet is a tool. So is the phone directory and a computer program. A tool is how we… Continue Reading “Financial Tools Are In Aisle 17”
Share this:
Max Planck’s Chauffeur
The following draws on a speech by renowned value investor, Charlie Munger, given to the graduating class at the USC Law School, 13th may 2007. Max Planck won the 1918 Nobel prize in physics for his ground breaking work in what became quantum theory. … Continue Reading “Max Planck’s Chauffeur”
moneyFYI 