Amazon is again offering a free game. Big Kahuna Reef (which was offered before) can be yours, free, from amazon.com. http://slickdeals.net/permadeal/19287
Monday, March 23, 2009
Tuesday, March 10, 2009
This Too Shall Pass
Here is some more info on past bear markets compared to the current one. All of them were bad, but all of them eventually recovered. Try to keep your cool and maintain your plan and asset allocation no matter what the markets are doing.
Source: dshort.com
Source: dshort.com
Monday, March 9, 2009
Sunday, March 8, 2009
Is $6600 Really That Low?
I know the state of the economy right now is troublesome to most people. Many people have investments that have lost half or more of their value. However, I don't think we're necessarily that far off from what we should expect. Take a look at the chart of the Dow Jones Industrial Average, below.
If we look at 1980, the Dow was around $830. A common number for the average growth of the market is 8%. So if we take $830 in 1980 and grow it at 8% for 29 years, it comes out to $7,733.34. This is higher than where we're at, but not too much higher. Even at 10%, we'd be looking at $13,166.37. I think the $14,000 range that the Dow was at previously (July 2007) was outside of the norm and that at least part of the drop in value is due to a correction back from that bubble. I know that won't do much to comfort those (myself included) who have seen a drastic drop in the value of their portfolio, but maybe it will help keep you from worrying too much about a total collapse of the market.
If we look at 1980, the Dow was around $830. A common number for the average growth of the market is 8%. So if we take $830 in 1980 and grow it at 8% for 29 years, it comes out to $7,733.34. This is higher than where we're at, but not too much higher. Even at 10%, we'd be looking at $13,166.37. I think the $14,000 range that the Dow was at previously (July 2007) was outside of the norm and that at least part of the drop in value is due to a correction back from that bubble. I know that won't do much to comfort those (myself included) who have seen a drastic drop in the value of their portfolio, but maybe it will help keep you from worrying too much about a total collapse of the market.
Friday, March 6, 2009
What is the Savings Deposit Program?
The DoD describes the Savings Deposit Program as "A safe way to save for those members serving in designated combat zones." Basically, it's a savings account for the military with a really good interest rate. Here's what you need to know.
Reference: http://www.dfas.mil/militarypay/woundedwarriorpay/SDPBrochure_Mar08.pdf
- Must be in the armed forces and receiving Hostile Fire Pay
- Must be deployed 30 consecutive days or at least part of 3 consecutive months
- Deposits may not be more than your unalloted pay and allowances for the given month.
- 10% APY, compounded quarterly
- Deposits must be in multiples of $5.00
- Withdrawals may only be made when you leave the combat zone or in the event of an emergency (requires commander's approval)
- However, if you have more than $10,000.00 in the account, the amount of $10K (the part not earning interest) may be withdrawn while still deployed
- Interest will continue to accrue for up to 90 days after you leave the combat zone (so wait three months to withdraw the money! Or, redeploy within three months to keep it going.)
Reference: http://www.dfas.mil/militarypay/woundedwarriorpay/SDPBrochure_Mar08.pdf
Thursday, March 5, 2009
Oldie but Goodie
Don't Buy Stuff You Can't Afford. A simple one step program to being debt free! This clip is pretty old but still funny and especially pertinent now-a-days.
http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff
http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff
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