Harry Binswanger Hijacks Real Capitalism

Harry Binswanger is completely misguided in his article that the 99% should give back to the 1%. His argument is not that we should have a less progressive tax, not that we should have a flat tax, not even that we should have regressive tax, but that “anyone who earns a million dollars or more should be exempt from ...

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Do the Wealthy Need Life Insurance?

One of the most commonly asked questions in financial services – and also one that creates tremendous confusion among both clients and advisors alike. As a family’s wealth grows, does this prescribe they need more life insurance or less?

One point of view

I used to know an extremely successful life insurance agent who argued several points such as:

1. The younger you are, the more life insurance you need

2. The older you are, the more life insurance ...

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The Jefferson Spread

A lot of personal finance strategies rely on what I call the “Jefferson Spread.”

It is amazing how many strategies come out of this.  Not that they are all good or all bad. But pick up most books on how to “build wealth” as a middle class family, and the Jefferson Spread will almost surely be the ultimate driver of how to do this.

What is it?

Primary residence purchases for middle class families are subsidized by the ...

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The Illusion of the Ownership Generation

The past 50 years have seen an unprecedented rise in home ownership, and for that matter ownership of all manner of financial assets (like stocks). This will probably change, slowly but surely over the next 25 years.

I’ve been writing a bit already about the impact that the country’s demographics have on the investment markets. We saw stock prices and P/E ratios stay much higher for much longer than we ever thought possible for several decades ...

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The First Time I was Told to Use Index Funds

The first person who told me to invest in index funds was……guess who….a stock picking stock broker.

This is not uncommon. If you read the financial media long enough you come across numerous articles to this effect. The premise is always the same. A hedge fund manager, investment banker or stock broker — basically someone whose livelihood is based on picking stocks and trying to outperform the market — admits to the media that they invest ...

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Apple’s Stock Buyback is just the beginning

I expect corporate stock buybacks to increase significantly in size and frequency over the next 25 years.

There are a lot of rumors and discussion about Apple buying back some of its stock, especially with Carl Icahn buying up shares and looking as though he will take an active role in steering the company.

Do you remember the boom of the late 90s? There wasn’t much talk of stock buybacks. Stock was being issued out to the ...

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