ETF investing done right

22.06.09



Talk about a recession double whammy. It's bad enough that you've been working harder with less prospect of getting a raise. Now it feels as if you can't even afford to get sick. Question: My mother-in-law, who's in her early 60s, was recently widowed. She now has Social Security and approximately $300,000 from a life insurance policy to live on. She's not comfortable taking on much, if any, risk but she does need to generate income from the life insurance proceeds. Any recommendations for how she should invest this money? --Chris, Atlanta, Georgia Kevin O'Leary struggled with a mid-career crisis. After more than a decade producing TV ads, he wanted out. But what next?



Is the daily indulgence of Starbucks and McDonald's coffee replaceable? High-flying shares of Green Mountain Coffee Roasters seem to indicate so. In a stay-put real estate market, some of the best gifts are home-improvement tools. Question: I'm 48 years old and have about 90% of my 401(k) invested in my company's stock and the rest in an international equity fund. I want to diversify further, but don't know where to turn. Any suggestions? --J.D., Glenville, New York

Your 401(k) may have returned to pre-crash levels. But just treading water won't power you to a comfortable retirement. These four moves will.

Question: I believe that along with a recession comes a great opportunity to invest and make significant long-term gains. I'm under 30, I contribute to my 401(k) plan and I'm willing to take risks. What are my best options in today's market? --Lyle, Fort Lauderdale, Florida Bankruptcy filings by American consumers increased nearly a third in 2008, according to a new report.

If your child skips college, is he entitled to the money you've saved for him? Money's ethicists weigh in. One of the few safe market havens this year has been an old standby -- good old municipal bonds. But their solid performance might just be the result of overzealous retail investors. The Volt may get 230 mpg. GM says it will cost only 40 cents to fuel up the car from a household outlet. But it still may not be worth it to buy one.



Question: I always heard that you will need 80% or so of your working salary to live on in retirement. But is that a percentage of your gross income or your take-home pay? --Mary Taylor, Chalfont, Pennsylvania Just a few years ago you could count on getting the bulk of your money back for almost any home-improvement project you took on. Today merely replacing a toilet seat can feel like throwing caution, and cash, to the wind. According to a study from Remodeling magazine, the average return on value for an upgrade declined from 87% in 2005 to 64% in 2009. But these six new rules will help you maximize your return on your remodeling investment. The FDIC protects against losses on bank accounts, but what happens to your investments if a mutual fund company collapses?

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The secret lives of America's debtors

08.03.10

Americans are loaded up with credit card debt. What's worse is that some husbands, wives and even children hide those money woes from their families. The results are often devastating.

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The price you pay for frothy assets

08.03.10

As the 10th anniversary of the bursting of the tech bubble is upon us, you've probably read a slew of stories about what an awful decade this has been for stocks.

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Should I fire my financial adviser?

08.03.10

Question: Last year I put my money with an adviser for an annual fee of 1% of assets and told him my only criteria for evaluating him will be whether he beats the market. I have refrained from telling him where to invest, when to invest, etc. as I view that as his job. He "got into the rally late" last year and underperformed the broad indexes by 10% to 12%, although we did have a decent fourth quarter. This year he's off to a horrid start, however, and we are already 3% worse than the broad indices. I try not to be a knee-jerk investor and know that every adviser has his ups and downs, but I'm wondering....Is it time to pull the plug? --Mike, Elkins Park, Pennsylvania

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Don't get angry at the markets

08.03.10

Get out your calendars, folks. It's time to celebrate -- or perhaps mourn -- the 10th anniversary of one of the epic financial events of our time: the peak of the great stock market bubble, in March 2000. That's the month the Nasdaq, Standard & Poor's 500, and Wilshire 5000 all reached new highs, then headed south, big-time. (The Dow industrials peaked that January, but who cares? It's just a crummy 30 stocks.)

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Rat out a tax cheat, collect a reward

08.03.10

If you knew coworkers, former bosses or exes who cheated on their taxes, would you turn them in? The Internal Revenue Service can make it worth your while.

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Spending a school fund

08.03.10

If your child skips college, is he entitled to the money you've saved for him? Money's ethicists weigh in.

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Student loan provider offers online savings

08.03.10

Students can now pay their college loans and save with Sallie Mae.

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The 60-plus set can't afford to retire

08.03.10

More people say they just don't have the money to retire these days.

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Why diversification will work again

08.03.10

Diversification, the notion of spreading your investments among different baskets of assets that don't rise and fall in unison, has long been considered one of the safest and surest moves you can make with your portfolio. After all, if any one basket falls apart, most of your brood should remain intact.

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The retired couple's guide to livin' the dream

08.03.10

Question: My husband and I have been happily married for 28 years. Careful spending and sound planning over time has provided us with a very comfortable financial future. Although we're compatible in many ways, our outlook differs when it comes to enjoying our money. I'm more of a saver and I hate to shop. I'm already retired, and when my husband retires in a year we'll begin drawing on our retirement savings. Can you suggest some tips on how we can communicate effectively about spending our money? How do we assure that we'll both have the independence to decide how we want to spend "our share" without judgment? --Margaret M.

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