General Financial Planning Principles

7 habits that keep you in debt (MSN Money)

 | If mood-boosting shopping sprees and racking up credit card rewards are a part of your lifestyle, you could be fueling a dangerous debt addiction. Results of Card Hub's latest credit card debt study show that Americans accumulated $18.4 billion in credit card debt in the second quarter of 2011 alone. Credit card debt continues to be a major problem for the average American consumer, yet many are still living a lifestyle that supports a costly debt habit.

Are bonds headed for a fall? (USA Today)

 | Matt Krantz of USA Today, writes in this article that it was well understood by many that the investment returns for government bonds were not to be as good as they have been, particularly in 2011. He asks, “When is this much-anticipated “great correction” coming?” Well, it didn’t happen in 2011. In fact, 2011 was a very good year to be holding bonds.

Can You Predict the Next Bubble? (Behavior Gap)

 | Being able to predict the future holds a lot of appeal, particularly bubbles. But trying to foresee when bubbles will pop is just another attempt to time the market.

What does a winning streak tell us? (Dimensional)

 | Bill Miller is one of the most closely watched money managers in the industry, so it was big news when he announced his decision to step down as portfolio manager of Legg Mason Capital Management Value Trust (LMVTX) in 2012. His departure also adds an intriguing chapter to the long running debate regarding the value of active stock selection.

No Lost Decade for S&P 500 as Market Value Bias Masks Rally (Bloomberg)

 | Even with the Standard & Poor’s 500 Index down 19 percent since the bursting of the technology bubble in 2000, it’s been no lost decade for stocks.

Seven Worst Times To Use Your Credit Card (Fox)

 | But before you pull out even your best rewards credit card, stop and think. In some cases, using your credit card could leave you vulnerable to identity theft or unauthorized use of your credit card account. In other cases, using your credit card may not be the smartest financial decision for you. Read on for situations when it's best to keep that Visa or American Express in your wallet and your account information under cover.

Four Ways to Include Your Spouse in Financial Planning (Fox Business)

 | I am ashamed to say that my wife told me the other day that she doesn't know what a mutual fund is. This stemmed from a brief discussion about where to invest $1,000 that we had collected from our 8-year-old son's birthday and Christmas money. My wife is a big fan of certificates of deposit. They are her safety blanket, and all she knows about investing. Of course, I was appalled. I was not only mortified at her investment choices but also at my own inability to educate her over the past ten years of marriage in the topics of my chosen profession.

Buying a new car? Get more for your used one. (CNN Money)

 | Now's your chance to swap your old vehicle for this year's model. Because of used-car shortages and new-car incentives, the price gap between new and used cars has sharply narrowed over the past year.