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Common cents by Tom Mills
Tom Mills is a Registered Investment Advisor and Certified Financial Planner. If you have questions or topics, you may call or write him at 1030 Seminary St. Suite D, Napa CA 94559, 254-0155, fax 254-0158 or e-mail suntrm@aol.com
November 23rd, 2009
Number 1,000 and countingWriting a weekly newspaper column is a good experience. By my count, this column is the 1,000th copy of “Common Cents.”
November 16th, 2009
Surviving the test of timeLast week I wrote about the little book I found entitled, “Tips on Finance,” by Herbert N. Casson. It was published nearly 80 years ago. It may sound a bit corny, but it is full of priceless advice and has survived the test of time. I covered the first six tips on success and happiness last week. This week we will learn from the last six.
November 9th, 2009
Positive attitudeSeveral years ago I shared some pearls of wisdom from a little book, “Tips on Finance,” by Herbert N. Casson. Although written nearly 80 years ago, the principles are timeless. I found in chapter two, “Making Money Happily – 12 Tips on Success and Happiness,” a treasure of concepts that could have come from the best of today’s “positive mental attitude” writers.
November 2nd, 2009
A soft touchI recently saw an article about a former NBA player who is broke and in debt. During a 12-year career, he earned more than $110 million in salary and endorsements. He is allegedly in debt for more than $4 million and faces felony check fraud charges. How is this possible by the age of 33?
October 26th, 2009
Don’t get greedyAfter all the press about pyramid schemes and other investment scams, you would think that they wouldn’t succeed anymore. Wrong! They happen all the time, and even in the Napa Valley.
October 19th, 2009
I still like IkeWhen I was a boy, I wasn’t interested in politics. Political parties were a foreign subject to me. I did, however, always like to read about our presidents. I was an avid reader of biographies. United States presidents were my favorite.
October 12th, 2009
A saving habitWe can’t control bond yields, stock prices or inflation. But there’s much we can control, including how much investment risk we take, how much we pay in investment costs, how we react to the market’s ups and downs and how much we spend and save.
October 5th, 2009
Is a Roth IRA right for you?Since its creation more than a decade ago, the Roth IRA has been among the best tax breaks available. You get tax-free withdrawals of your earnings after your taxed dollars have been contributed, and the five-year and age 59 1/2 (whichever is later) (or death, disability, or first-time home buyer) requirements are met.
September 30th, 2009
Humorous look at growing olderAbout 12 years ago, I wrote a column about some of the advantages of getting older. Here are some of the “great things” about getting older. Some of these are painfully humorous.
September 28th, 2009
Humorous look at growing olderAbout 12 years ago, I wrote a column about some of the advantages of getting older. Here are some of the “great things” about getting older. Some of these are painfully humorous.
September 21st, 2009
Investors need to be more realisticLast week I attended an investment conference in Nebraska. I have been to this meeting many times in the past 10 years. This year it was different. Most of the discussion was about protecting assets and providing safe income that would last forever.
September 14th, 2009
Don’t obsess about wealthFor more than 40 years that I have been in business, I have found that striving to acquire a greater net worth, to become wealthy, can be elusive and costly. I came across a little vignette that I like. It’s called the Corsican Fisherman.
September 7th, 2009
Windfall wealthWhat would you do with an extra $90,000? Would you pay off some of your debts? Take a trip? Buy a new car or boat? You’ve got a real problem: What to do with the money? You may be thinking, “That’s a problem I could handle!”
August 31st, 2009
Financial gurusEvery decade spawns market gurus who make a few correct calls, get massive media attention, then fizzle out. In the 1960s, we had Gerry Tsai, Fred Carr and other mutual fund gunslingers. In the 1970s, we had Joe Granville and Henry Kaufmann. In the 1980s, it was Robert Prechter and Elaine Garzarelli. The 1990s brought us the high-flying Internet stock managers. Today, Nouriel Roubini and Meredith Whitney are all the rage. But, eventually, they all return to earth.
August 17th, 2009
Creating an ethical willRecently, a friend handed me a nice little 50-page pamphlet entitled “The Family Love Letter” by estate planning attorney John Scroggin. It is a well-written self-completion booklet that helps you organize where your important documents are located and provides a way to list your important people and advisors.
August 10th, 2009
Q & A on the economyA reader suggested that I try a question and answer format in my column. Here you go!
August 3rd, 2009
Getting out of debtWhether you’re buying coffee and the morning paper at the convenience store, paying for a getaway vacation cruise or settling your tax bill with Uncle Sam, it’s all too easy to pull out your plastic. For many of us, credit cards have become a little too convenient.
July 20th, 2009
Trying to recoverWith the market decline over the past 18 months, you may be wondering if it’s time to put the brakes on your 401(k) contributions. If your dwindling account balance has you down, you’re not alone. When the stock market hit its apparent low in March, some accounts had declined over 50 percent.
July 13th, 2009
Avoiding the meltdownThe 2008-09 financial meltdown is a stern reminder that failing to plan for low probability events may lead to detrimental consequences.
July 6th, 2009
Uncertainty makes planning for retirement difficult.Uncertainty makes planning for retirement difficult. By understanding and preparing for uncertainty, however, we can still look forward to a future where anything is possible. Everyone has to make assumptions when planning for retirement. What will our living expenses be? How much income will we have? What numbers should we use for inflation and investment return? After all that, some things can — and will — change the most well-thought-out plan.
Uncertainty makes planning for retirement difficultUncertainty makes planning for retirement difficult. By understanding and preparing for uncertainty, however, we can still look forward to a future where anything is possible. Everyone has to make assumptions when planning for retirement. What will our living expenses be? How much income will we have? What numbers should we use for inflation and investment return? After all that, some things can — and will — change the most well-thought-out plan.
June 29th, 2009
EthicsOne of the big problems I see in the recent headline-grabbing scandals, and in business in general, is the lack of commitment to ethical values by those in leadership positions. Each of us makes ethical decisions every day.
June 22nd, 2009
Tracking the economyAs part of my investment business, I track a number of research sites. Since the stock market hit its low on March 9, 2009, most investment categories have made a nice rebound. In general, most of the experts are expecting a fairly good overall result in 2009. Equities should be in the low double-digit range and fixed income high single-digit return range. If they are right, this will be a good recovery from a dismal 2008.
June 15th, 2009
Life’s lessonsEvery once in a while, I see an Internet posting that is entertaining and full of wisdom. A friend sent me one written by Regina Brett, a columnist in Cleveland, Ohio’s Plain Dealer, who had just turned 50. She listed 45 lessons of life, plus five to grow on, which I have reduced to the ones with business applications.
June 8th, 2009
Picking the right rate for youMortgages come in many sizes and types, and one of the most important decisions borrowers face is whether to take a fixed or an adjustable rate mortgage. The type of mortgage for you depends on many factors, such as your tolerance for risk and how long you expect to stay in your home.
June 1st, 2009
Financial successHere is a top 10 list for becoming more financially successful — in descending order of importance.
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