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Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs

Carnival of Financial Planning – Edition #204 – September 30, 2011

Welcome to the September 30, 2011 Edition #204 of the Carnival of Financial Planning.

The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security.

This edition is arranged by subject heading, so that you can browse efficiently.

Enjoy!

The Skilled Investor, Editor

Budgeting and Economics

Jon Elder presents Pay Cash or Finance a Car? That is the Question! posted at Free Money Wisdom, saying, “Whether you pay cash or finance a car, it’s likely to lose value almost as soon as you drive it off the lot. That’s why it takes careful consideration to make sure that you’re making the right decision for your personal financial situation.”

Jonathan presents Is Buying in Bulk for You? posted at Money Mum, saying, “Buying products in bulk can be extremely beneficial for your wallet as you often get more for your money with bulk buys. It can also be a great time-saver as you won’t be running to the store every day to pick up the ingredient or household product you forgot to buy during your last shopping trip. Before you start buying all of your products in bulk, however, there are a few important items to consider:”

misst presents My ‘Free’ Kitten Cost Us Over $9000 | Prairie Eco-Thrifter posted at Prairie Eco-Thrifter, saying, “I hope I don’t sound too mercenary, I do love pets and know that many people consider them family members – and you don’t put a price on a family member. Still, it pays to know the costs related to a family member so you can plan for them in your budget. Put your pet’s needs in your budget.”

Jason@LiveRealNow presents Hiding Money: The Invisible Cushion posted at Live Real, Now, saying, “I’m bad at keeping secrets from my wife, especially about things that affect both of us, but if i let it slip, the invisible cushion will go away.”

Mr. Money Smarts presents Are Your Emotions Getting In The Way Of Your Financial Success? posted at Smart On Money, saying, “Making a plan is a good idea no matter your situation. Whether you are creating an investment plan for retirement, or making a debt reduction plan, having a road map to follow can help you avoid the pitfalls of letting your emotions rule you.”

Rogan Seager presents Retirement Savings Calculator posted at Retirement Savings Calculator, saying, “Valuable future investment portfolio assets and future investment returns slip through many people’s fingers at the checkout stand every day, because they spend beyond their long-term means.”

Jacob presents 10 Effective Things You Can Do When America is in a Double-Dip Recession posted at My Personal Finance Journey, saying, “During recessionary periods, effective financial planning is of absolute importance. This post takes a look at 10 things normal individuals can do to in their finances and career to enable them to not only survive the recession, but perhaps prosper…”

Bob presents How to Stick To A Budget posted at Christian Personal Finance, saying, “Budgets have always been a tough sell. However, in workshops I teach around the country, I’ve noticed a hopeful sign – Instead of flat out resisting the idea, more and more people are asking questions about how to stick with a budget.”

Estate Planning

My Journey presents Why I am Not A Big Proponent of Revocable Living Trusts posted at My Journey to Millions, saying, “In both my law practice and day job Revocable Living Trusts come up often, however, I am not a particularly big proponent of using them for one specific reason discussed below.”

Crystal presents Preparing for the Inevitable posted at Budgeting in the Fun Stuff, saying, “Nothing lasts forever and in fact, you can estimate the life of most things you buy so start saving to replace them before you need to!”

Financial Planning

Craig Ford presents Please Don’t Let Your Bank Make Your Financial Decisions posted at Money Help For Christians, saying, “Plan your finances with purpose, not by default.”

Jose D. Roncal presents Can You Spot Fudged Financials? posted at Jos? Roncal, saying, “It’s been more than a decade since the financial scandals perpetrated by Enron, World Com, and a host of others hit the evening news. Yet the images of top executives being forced to do the perp walk are still fresh in the collective mind. So are the memories of millions lost in retirement savings.”

DGB presents 6 Reasons Why You Should Panic and 1 Reason Why You Should Keep Investing posted at The Dividend Guy Blog, saying, “Are you going to panic?”

Ciana Locke presents Market Index Funds posted at Best Index Mutual Funds, saying, “The dominant issue in choosing among passively managed index mutual funds and ETF funds benchmarked against the S & P 500 is that securities industry management and trading fees are all over the map from reasonably low to shockingly high.”

Suba presents Big dreams, small income : Financial planning for the middle class posted at Wealth Informatics, saying, “How to find a financial planner for the middle class? ”

Echo presents 11 Steps To Financial Freedom – Determine Your Net Worth posted at Boomer & Echo, saying, “Fewer partnerships would end in divorce if couples thought more objectively about their finances. That means treating your marriage like a business.”

Frank Knight presents Investment Asset Allocation posted at Retirement Planning Software, saying, “When you are already there and invested in an asset class, you are following a passive asset allocation strategy. Tactical asset allocation strategy advocates suggest that you can anticipate the crowd, but flow-of-funds studies show that almost all tactical asset allocation fund flows are late money flows that chase performance after valuations have already moved.”

Financing a Home

Nathan Richardson presents What Is A Good Credit Score To Buy A House posted at Deals & Tips, saying, “Credit Scores and Interest rates are correlated, learn what it takes to achieve a optimal credit score.”

Mckay presents Buying versus Renting: The Last Article You’ll Ever Need to Read posted at Vacancy.com, saying, “A comprehensive look at buying a home versus renting.”

DJ presents Walking Away from Your Home – What Are The Alternatives? posted at The Family Wallet, saying, “Losing your home brings forth a deluge of emotions. It’s a sad event, and it may also make one feel angry or ashamed. It’s certainly not ideal, yet desperate homeowners often feel that they have no other alternative. But in most cases, there is help available.”

Financing Education

Jeri Ford presents 7 Situations Where Cash Back Credit Cards Are Better Than Air Miles Credit Cards posted at Help Me Travel Cheap, saying, “Help determine situations where cash back credit cards are better than mileage credit cards”

Annette presents Higher Education: Economic Boon or Bubble? posted at CreditDonkey.com Tips, saying, “Is college worth it? A look at demographics, degrees and debt”

Andy Boyd presents Bear Markets Explained posted at Wise Bread, saying, “So what exactly is a bear market? It’s the opposite of a bull market (which is why the bear market is sometimes known as a “heifer market”). A bull market is when traders are making a killing on the stock exchange, prices and indexes are rising, people are making money, and optimism fills the offices of the NASDAQ and NYSE. Unfortunately, this means that a bear market is when share prices are falling, traders are panicking, and the economy looks perilously close to tail-spinning out of control.”

Financing Healthcare

Consumer Boomer presents Cheap Medications For Seniors On Line posted at Consumer Boomer, saying, “Here is a look at how you can save money by ordering your prescriptions on line and some great tips to help you find an on life pharmacy that will work for you.”

Income

David Leeman presents Extra Ways to Make Money posted at Financial Freedom Advantage, saying, “Here are some of the best extra ways to make money to help supplement income. Most of these easy ways to make money require no investment and no special training.”

Kyle Taylor presents Is This a Good Time to Start Selling Real Estate Part-Time? posted at The Penny Hoarder, saying, “A friend of mine recently told me that he is thinking about becoming a real estate agent on the side to help generate extra income. I couldn’t help but blurt out an inappropriate, “Are you crazy?!” Weigh in on our debate…”

Mike @ Green Panda presents Are You Going To Graduate and Go Back To School? posted at Green Panda Treehouse, saying, “Will you boost your income with graduate school?”

Dr. Dean presents Couple Financial Role Reversal! posted at The Millionaire Nurse Blog, saying, “Most couples do things with finances separately in some way..one partner makes the money while the other spends it, right? Jokes aside, preparing for the possibility that you may have to take over the opposite role is a good idea.”

FMF presents Merit Alone May Not Get You that Promotion posted at Free Money Finance, saying, “Performance alone likely won’t get you promoted. You must also be liked.”

Investing

Kevin presents The Biggest Unknown Risk of Stock Investing posted at Invest It Wisely, saying, “We say that stocks are risky because we know that prices can suddenly drop hard — stock prices are volatile. But we also believe that stocks are not really all that risky for those committed to holding them for the long term. In the long term, stocks always provide good returns. By following a Buy-and-Hold strategy, we can overcome the riskiness of stocks. I don’t think it is so. I view this as dangerous thinking”

Alex Foster presents What is the Market Multiple posted at AF Capital Management’s Blog, saying, “ if the economy is less than 30% likely to fall into a recession again in the near term, why has the market sold off so much so quickly?”

Ken Faulkenberry presents Top Global Investment Trends to Invest In – 2011 posted at Arbor Asset Allocation Model Portfolio (AAAMP) Blog, saying, “These are some of the top global investment trends that should be included in every portfolio asset allocation in 2011 and beyond.”

Mirelle Rowden presents Fixed Income Funds posted at Best Bond Mutual Funds, saying, “Vanguard dominates this low cost United States bond mutual funds marketplace for direct purchase accounts with both low and high minimum deposits.”

Corey presents Is it Hard to Time the Market in a Recession? posted at 20′s Finances, saying, “With the stock market in a major slump, many people are cutting their losses. If you are investing for the future, now is the time to buy.”

Dividends4Life presents 7 High-Yield Dividend Achievers With 25 Years of Increases posted at Dividend Growth Stocks, saying, “While the S&P 500 Dividend Aristocrats may be the most recognized list of dividend stocks, it is certainty not the largest. Since the Dividend Aristocrats list is limited to only stocks included in the S&P 500 Index, many smaller stocks are excluded. To expand the population of potential investments, many investors look at the dividend growth stocks included in Broad Dividend Achievers™ list.”

The Financial Blogger presents September Net Worth Update (-5.01%!) posted at The Financial Blogger, saying, “In another fully transparent report, I share my updated finances.”

DGB presents Dividend Growth Index posted at The Dividend Guy Blog, saying, “Are you a dividend growth investor? You need to check this out.”

Intelligent Speculator presents Amazon (AMZN) A Must Buy Stock? posted at Intelligent Speculator, saying, “Have you purchased this stock?”

Glen Craig presents What is a Mutual Fund Prospectus? posted at Free From Broke, saying, “So you want to invest in mutual funds but you are clueless about them? A good place to start is to answer the question: What is a mutual fund prospectus?”

Janet Russell presents The illusion of superior professional mutual fund manager performance posted at Personal Investment Management, saying, “If investment mutual fund managers were truly skilled at beating the market, then you would expect mutual fund manager performance prowess to persist over time. The effort to find those few supposedly superior money managers willing to sell their services sufficiently cheaply is a costly, time consuming, and futile, “Where’s Waldo?,” searching exercise for the individual investor.”

Darwin presents Seriously, a 9% Risk-Free Return in 1 Month. Here’s How posted at Darwin’s Money, saying, “Here’s how I earned a 9% return in 1 month – risk-free! This is a once per year opportunity that few people take advantage of!”

Frank Bertin presents Index Funds posted at Top Index Funds, saying, “Top ten no load index funds that track the Standard and Poors 500 composite index in terms of lowest costs.”

Dan presents 5 Reasons to Avoid the Most Popular Gold ETF GLD posted at ETF Base, saying, “Everyone’s talking about gold – and buying the gold ETF GLD. Here are 5 reasons why you should RUN!”

Managing Credit and Debt

Melissa Batai presents How We Plan to Tackle Our Debt posted at Mom’s Plans, saying, “We would like to have a significant chunk to put down on a house in a few years, and I don’t want to purchase a house if we have other debt. Here is our plan for paying down our current debt quickly:”

Jen presents The Life of The Evil Credit Card- part 5 posted at Master the Art of Saving, saying, “Documenting the life of a recently acquired credit card and my journey to paying it off. Tracking the interest, payments and balances as well as what it would cost to only pay the minimum payments.”

Matt presents 079 Financial Excellence: Why Dave Ramsey?s Advice Doesn?t Make Sense posted at Living In Financial Excellence, saying, “Dave Ramsey has a lot of critics in the financial world. Many of them criticise his methods because they don’t make mathematical or theoretical sense. But Dave isn’t trying to make mathematical sense.”

J.R. Weber presents Current Credit Card Rewards Offer Rankings posted at Smart Balance Transfers, saying, “Consumers who are debt free can benefit from credit card rewards offers, but there are a number of factors that influence whether a rewards card is the right option.”

MainstreamMom presents Get Out of Debt With the Help of Debteye posted at Mainstream Mom, saying, “I had a chance to check out a new program called Debteye. I wanted to find out more about how their program worked, and how it’s different from other debt relief companies out there. I had a chance to speak with Kevin Yu, who is one of the co-founders of Debteye.”

Janet presents Building Good Credit: It Doesn’t Have to Mean Debt posted at Credit, Eh, saying, “One of the misconceptions that many people have is that building good credit means that you have to get into debt. However, this just isn’t true. ”

Miscellaneous

Marie presents Compare DIY Material Costs and Save posted at Money Spending Mommy, saying, “When you hire a contractor, you usually have little say in the materials used for your home improvement project. But when you’re in charge, you can shop around for the best deals. Here are some tips that will help you save money on materials.”

DJ presents Budget Tips For School Trips and Activities posted at The Family Wallet, saying, “Handling requests to go on field trips and participate in activities can be difficult. Here are some ways you can work these things into your budget.”

Tim @ Faith and Finance presents 12 Seasonal Jobs for This Holiday posted at Faith and Finance, saying, “With the holidays around the corner, you might find a few extra job opportunities if you look hard enough. Be prepared and get some good ideas with these suggestions.”

Kevin presents Apple Picking posted at Invest It Wisely, saying, “Apple picking can illustrate three important life and financial lessons.”

MoneyCone presents Using PayPal To Send Money? The Deal Just Got Sweeter! posted at Money Cone, saying, “What if I told you you can send money via Paypal, fund it with a credit card yet not get charged any fees by either the credit card company or PayPal and actually earn cash back on your PayPal payment?”

Tripp Danner presents No Load Funds posted at No Load Fund, saying, “There are over 60,000 different mutual fund investment share classes sold worldwide. Some mutual funds and ETFs must be better than others, but which ones are they? How can you tell before the fact?”

Consumer Boomer presents Beware Of These Baby Boomer Scams posted at Consumer Boomer, saying, “Baby boomers need to know what to look out for in order to protect their assets. Here is a peek at just a few of the top scams to watch out for.”

Suba presents How sleep affects finances posted at Broke Professionals, saying, “Lack of sleep is often attributed as a sign of hard work and competitive strength. But do you know all the negative effects lack of sleep can have on your finances?”

Jaimie presents Seven Holiday Movies That Put Money and Materials in Perspective posted at Paid Twice, saying, “It’s a little early but here are some movies that put life back into perspective.”

The Skilled Investor presents Market Timing Does Not Work posted at Personal Financial Management, saying, “Always stay invested to earn risk premiums. You must have your money invested and at risk to get risk premium returns. Jumping out and in or “timing the markets” doesn’t work.”

Retirement Planning

James Bush presents Withdrawing from Your 401k Early (If You Absolutely Have To) posted at 401k Calculator, saying, “It’s often not a good idea to tap into your 401K but if you have made the decision to do so here are some things to consider.”

Brockton Eaton presents Long Term Investment Strategies posted at Retirement Investment Strategy, saying, “The investment research literature repeatedly demonstrates that a fully diversified, low cost investment strategy is superior.”

Risk Management and Insurance

FMF presents How to Buy Long-term Care Insurance: What Every Policy Should Include posted at Free Money Finance, saying, “Some of the basics you should look for when you’re thinking of purchasing a long-term care insurance plan (LTCI). There are standards that every policy should uphold as well as additional, more personal considerations to take into account.”

Savings

Matt presents Back-to-School Shopping… Saving Money After the Dust Has Settled posted at Living In Financial Excellence, saying, “To me – both as a parent,and as a thrifty adult – the best part of the back top school sales starts now… just in time for several upcoming occasions.”

Walter Binkle presents Large Cap Mutual Funds posted at Mutual Funds, saying, “You can save a lot by paying attention to mutual fund expenses. Each of these S & P 500 index funds is among the least costly on the market.”

SB presents When and How to Buy Holiday Airline Tickets to Save posted at One Cent at a Time, saying, “Summer is now gone, when you are waiting for the leaves to change color, this is the best time to buy airline tickets for holiday travel. How to get the cheapest airline fare this holiday.”

Bradson Oakley presents Bond Mutual Funds posted at Best Bond Funds, saying, “Higher bond fund expenses tend to mean lower net returns to individual investors. It is not worth paying higher bond fund fees.”

Mike Holman presents How to avoid cell phone data roaming charges when traveling to the United States posted at Money Smarts Blog, saying, “How to save on cell phone data roaming charges when traveling to the US or other countries.”

Jonathan presents Millionaire Master Class: 6 Tips from the Top posted at Wallet Watcher, saying, “When it comes to money management, millionaires aren’t so different from the rest of us after all. In order to maintain their position at the top and avoid the dreaded status of bankruptcy they tend to watch their every dollar and cent, budget, live frugally and avoid financial risk just as we do.”

Taxes

Investor Junkie presents What Does Netflix and Taxes Have In Common? posted at Investor Junkie, saying, “Now you might be wondering what does taxes have to do with Netflix? Everything! This is a classic example of elastic demand”

Gemma Flannery presents Tax Codes and your Personal Allowance posted at Tax Codes, saying, “Each year you can earn a certain amount tax free. This post shows how your tax code is affected by your tax code.”

Finley Merriwether presents Retirement Planning Calculator posted at Retirement Plan Calculator, saying, “Tax-advantaged retirement savings plans give you the opportunity to make investments with deferred taxes in 401k, 403b, 457, Keogh, Simple, or other employer sponsored retirement plans.”

Mark Roberts presents How To Choose The Right Filing Status posted at Tax Brackets, saying, “This article provides a guide to choosing the right filing status for your tax return.”

That concludes this edition. Submit your blog article to the next edition of Carnival of Financial Planning using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: carnival of financial planning, blog carnival.

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Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs 

Welcome to the August 20, 2010 Edition #154 of the Carnival of Financial Planning.

The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security. 

This edition is arranged by subject heading, so that you can browse efficiently.

Enjoy!

The Skilled Investor, Editor

Budgeting and Economics

Jeff Rose, CFP presents 3 Unusual Ways to Save Money posted at Jeff Rose, saying, “Here goes, three unusual strategies that not only save you money but also improve the quality of your life.”

Roshawn Watson presents Economists Blame ME for the Slow Recovery posted at Watson Inc, saying, “We are responsible with our money, yet instead of admiration (or even understanding), these efforts garner contempt as the frugal once again get the blame for dismal economic activity.”

Craig Ford presents 20 Reasons to Start a Budget posted at Money Help For Christians, saying, “This post gives reasons why non-budgeters should consider budgeting.”

Roshawn Watson presents Why Is Debt Really Decreasing? posted at Watson Inc, saying, “In the first quarter of 2008, our debt to disposable income peaked at a staggering 131%. This means for every dollar we earned, we spent $1.31. As of March, our debt as a share of our annual income is presently 122%. If you think this change indicates that we have collectively been so scarred by the “Great Recession” that we are now behaving fiscally responsible, think again. There is a surprising and sad reason why our debt has gone down. Hint, it has nothing to do with frugality.”

Mike @ Green Panda presents The $7.27 Mistake Plus Ways To Avoid It posted at Green Panda Treehouse, saying, “How to make the most out of your money when going out.”

Joe Plemon presents The Real Estate Bubble: What Happened and What Can We Learn From It? posted at Personal Finance By The Book, saying, “Understanding how the real estate bubble inflated and popped may help us spot other financial bubbles before they pop.”

The Skilled Investor presents Save More Money posted at Personal Finance Strategy, saying, “Budgeting and self-control in consumption is far more important than clever investing. Expenditure control and budgeting works, while “clever” investing usually is counter-productive.”

Estate Planning

Peter presents No Estate Tax In 2010 Means George Steinbrenner’s Family And Others Will Save Millions In Taxes posted at Bible Money Matters, saying, “2010 is apparently a good year to die.”

Financial Planning

Paul Williams presents How to Create a Balance Sheet, or How to Calculate Your Net Worth posted at Provident Planning, saying, “A basic step in financial planning is to create your balance sheet. It gives you a snapshot of what you own and what you owe. You’ll need one if you’re working on your estate plan or if you just want to keep track of things.”

Sustainable Life Blog presents Prioritizing Goals? posted at Sustainable Life Blog, saying, “Wondering where to turn when starting to attack debt? Here’s a quick guide on how to help you prioritize your goals.”

Tom @ Canadian Finance Blog presents Will The Fee Only Financial Planner Model Ever Catch On? posted at The Canadian Finance Blog, saying, “Hiring a Fee Only Financial Planner is in the best interest of the consumer. To get unbiased advice you need someone who has no interest in selling you something.”

Ryan @ MFN presents What to Do With an Enlistment Bonus posted at The Military Wallet, saying, “What should you use a large cash bonus for? Pay down debt, invest, spend?”

Ashley Jacobs presents Clogged Cash Flow? 4 Tricks to Restart the Flow posted at Cash Flow Sherpas, saying, “There are so many things that stop us in our tracks financially. Why does getting stuck seem easier than making progress? Here are four popular places we get jammed and four tips on how to remove obstacles from your fiscal flow.”

Frank Knight presents Roth IRAFinancial Software posted at Financial Freedom Plan, saying, “Whether to invest in a Roth IRA or Roth 401k versus their traditional retirement account alternatives is one of the most complex personal financial decisions. Roth accounts do not make sense financially for most people. They are a good deal, for a minority, but you need to do the analysis.”

Dividend Tree presents Building Core Competency for Long Term Survival posted at Dividend Tree, saying, “whether it is running a business or individuals investment portfolio, it is important to build a core competency for long term sustainability. In my case, I focus on good quality companies that consistently pay or have potential to pay growing dividends over time.

jim presents Review Your Credit Reports Every Year posted at Identity Theft Wall.

Larry Russell presents No Load Mutual Funds posted at Top Index Mutual Funds, saying, “Superior past performance has simply not been shown to be a reliable predictor of superior future performance. However, low costs can lead you to the best mutual funds.

Financing a Home

Jeff Rose, CFP presents Rent Vs. Owning: When Does it Make Sense to Rent posted at Jeff Rose, saying, “I’ve seen too many cases where young people were so eager to “live the American Dream” and get their first home that they didn’t realize all the little things that come along with being a homeowner. Slow down and do your homework before you take the plunge.”

Jeff Rose, CFP presents Dave Ramsey FPU 12 Real Estate and Mortgages posted at Jeff Rose, saying, “the absolute best mortgage is the 100 percent down plan, but if borrowing is necessary, he teaches to get a 15-year fixed-rate loan with payments that do not exceed more than 25 percent of your take-home pay. He also reminded students to make sure they have a fully funded emergency fund”

Ben presents 5 Good Reasons Buying a House Requires Planning posted at Money Smart Life.

Financing Education

Ryan @ CML presents Where to Open a Coverdell ESA Plan posted at Cash Money Life, saying, “Coverdell ESAs are a college savings account that have great tax advantages. This info can help you find a great place to open your Coverdell ESA.”

Craig Ford presents How to Graduate from College without Student Loan Debt posted at Money Help For Christians, saying, “A step by step guide for those who want to graduate debt-free.”

Health Care

GrrlScientist presents Free Money? posted at This Scientific Life, saying, “I just mailed a letter back to the comptroller for Columbia-Presbyterian Hospital [now: New York-Presbyterian Hospital], which promises a refund for one of several duplicate charges that the hospital levied against me for medical bills that were “unpaid.” I know I should be happy about this, but instead, I am very very angry. Why?”

Money Beagle presents Flexible Spending Account Review posted at Money Beagle, saying, “It’s always good to do a check on where you’re at every now and then if you participate in an FSA or HSA plan.”

Income

MoneyNing presents Three Reasons Stay at Home Parents Should Consider Working Part Time posted at Money Ning, saying, “Working part time is not as bad as it seems, even for stay at home parents!”

MoneyNing presents 15 Ways to Earn Extra Money posted at Money Ning, saying, “There are lots of ways to make more money. Here are 15 to start you off.”

Paul Williams presents The Three Methods of Making Money posted at Provident Planning, saying, “Trying to think of ways to make more money? This article helps you consider the methods people use to earn money. It might just help spark that idea you’ve been waiting for!”

Alexander presents General Mills Pays Dividends posted at Dividend Stocks, saying, “General Mills General Mills is a good stock for fixed income investors looking to add some income to their portfolio.”

Investing

Mr. Money Smarts presents Personal Finance Basics: The Power Of Compound Interest posted at Smart On Money, saying, “The power of compound interest – just make sure you’re earning it!”

freefrombroke presents Investment Strategy For Beginner Investors posted at Free From Broke, saying, “Some ideas for the beginning investor in, what is for many, the confusing world of investing.”

Super Saver presents Faith in our Long Term Future posted at My Wealth Builder, saying, “I still believe it is right to have faith in the historical long term returns of the stock market.”

Praveen presents Caveat Emptor: If An Investment or Opportunity Appears Too Good To Be True, Beware! posted at My Simple Trading System, saying, “Beware of investment opportunities that seem to be too good to be true.”

Sun presents Watch Those Fees to Improve The Performance of Your Portfolio posted at The Sun’s Financial Diary.

Dividends4Life presents 3 Signs of an Impending Dividend Cut posted at Dividends Value, saying, “Most investors are not surprised when a company cuts its dividend. They saw the early warning signs well in advance of the actual cut. Here are three signs that a company is heading toward a dividend cut:”

Tushar Mathur presents Can’t Control the Markets? Try controlling the Costs posted at Everything Finance, saying, “The financial markets are prone to unpredictable periods of turbulence. That can make investing feel a bit like a roller-coaster ride. The disappointing results may have left you feeling concerned over your financial future. You’re not alone.”

FMF presents Invest in All Six Asset Classes posted at Free Money Finance, saying, “Here are the six areas where you should be investing your money.”

The Skilled Investor presents Market Timing posted at Investment Portfolio Management, saying, “Always stay invested to earn risk premiums. You must have your money invested and at risk to get risk premium returns. Jumping out and in or “timing the markets” doesn’t work.”

Super Saver presents Profiting from the Bond Bubble posted at My Wealth Builder, saying, “Over the past two years, our bond investments have done very well. Lately, I’ve been thinking that results are not sustainable, and that this may be a bond bubble.”

marc ryan presents The Vanguard Group, Inc. and Canadian investors – IndependentInvestor.info posted at IndependentInvestor.info, saying, “One of our readers, Eileen B., recently wrote to us: ‘’There are Vanguard ETFs now available from Canadian online banking/investing sites. These do not get the same positive recommendations in the Canadian media as do the iShares or Claymore offerings. Can you think of a reason for that? Why do Canadian investors not hear more about Vanguard? ‘’This commentary seeks to explain and help fill that information gap. Even though it is a US entity, there are many reasons why Canadian investors should take the time to learn about Vanguard and its products.”

Zach Scheidt presents Solar Selloff Close To Exhaustion? posted at ZachStocks, saying, “Solar stocks are off sharply due to Euro-Zone concerns. Trina Solar could end up being an exceptional value if earnings remain somewhat stable and management is able to calm investor fears.”

Dividends4Life presents 16 Confident and Secure Companies Boosting Dividends posted at Dividends Value, saying, “Are you confident and secure in your investing process? It appears many people are not. We must follow a process we are 100% confident in. Doubt is the gateway to destructive behavior. For me, dividend growth investing is what I am confident and secure in.”

The Financial Blogger presents Best 50 Canadian Dividend Stocks posted at The Financial Blogger, saying, “With the plethora of dividend stocks out there, here are the best 50 canadian dividend stock picks.”

Intelligent Speculator presents Of course Amazon (AMZN) results are terrible!! Blame Apple (AAPL) posted at Intelligent Speculator, saying, “Amazon isn’t doing so well with the iPad now out in the market.”

Frank Vertin presents Top Index Funds posted at Noload Mutual Fund, saying, “Top ten no load index funds that track the Standard and Poors 500 composite index in terms of lowest costs.

Dividend Tree presents Dividend Investing and Businesses with Moat posted at Dividend Tree, saying, “In general, companies with moats in their business are very good dividend growth providers. However, the opposite may not be true.”

Frank Knight presents Municipal Bond Financial Software, posted at Personal Finance Software, saying, “Municipal bond investments and your state and federal marginal income tax rates: Some investors hold municipal bonds in an attempt to reduce their tax burden. This article discusses the relationships between tax-exempt municipal bonds, bond market returns, marginal tax rates, and investment asset tax location.”

Silicon Valley Blogger presents Where To Invest Extra Cash and Savings Today posted at The Digerati Life

Tomas Escent presents Stock Trading Automation posted at Nerds on Wall Street

Managing Debt

Tim Chen presents Costco TrueEarnings: the Best Credit Card for Well-Rounded Spenders? posted at NerdWallet Blog – Credit Card Watch, saying, “When you, as a credit card user, are hunting for ways to maximize rewards, attention-grabbing 5% cash back offers can be tempting. But we’ve made no secret of our view that these cards rarely offer the best deals. If you just want to find the one card that fits your spending habits the best and move on with your life, the Amex TrueEarnings Card from Costco might be exactly what you’re looking for.”

The Smarter Wallet presents Are Debt Counseling Services The Way To Debt Relief? posted at The Smarter Wallet, saying, “On debt counseling services.”

Jeff Rose, CFP presents How Important Is Your Credit Score posted at Consumer Boomer, saying, “If you have bad credit or no credit at all, you have undoubtedly run into trouble getting approval for credit or good terms on the credit for which you are approved. Here we look at the importance of your credit score and how you improve your score to better your life.”

freefrombroke presents Sure-Fire Tips To Renegotiating Your Credit Card Debt posted at Free From Broke, saying, “Ways a person can re-negotiate their credit card debt.”

Big Cajun Man presents Found Money Trap posted at Canadian Personal Finance Blog, saying, “Found money should go on debt no matter what!”

Tim Chen presents Amex is Hiking Fees on the Starwood Preferred Guest Nearly 50%, and it?s Still a Good Deal. posted at NerdWallet Blog – Credit Card Watch, saying, “American Express has started sending out letters to its cardholders, informing them that it plans to raise the annual fee from $45 to $65 starting October 14th, and it’s modifying the rewards program a bit. If you’re a cardholder, you may be considering canceling the card in anger at the prospect of a higher fee, but we don’t think you should.”

Learn Save Invest presents 5 Steps To Debt Reduction posted at Learn Save Invest, saying, “Here are 5 tips you need to master in order to reduce your debts.”

Miscellaneous

Joe Plemon presents Should You File That Insurance Claim? posted at Personal Finance By The Book, saying, “There are times when filing a legitimate claim can earn you a penalty from your insurance company.”

PT presents Investment Properties: Should You Buy One? posted at Prime Time Money, saying, “Should a rental property be a part of your portfolio?”

Mike @ Green Panda presents Stop Waiting For The Big Idea posted at Green Panda Treehouse, saying, “Just thinking about the next big thing might just be a complete waste of time. Take that step towards your goals.”

The Wise Squirrel presents How Much Money Would it Take for You to Relocate? | Squirrelers posted at Squirrelers, saying, “When planning out your financial future, where you choose to live can be very important. How big of a role does money play?”

Pasadena Financial Planner presents Vanguard Investment Performance posted at Top Mutual Fund, saying, “Compares Vanguard’s actively managed mutual funds and Vanguard’s passively managed index mutual funds. Vanguard investors should read and understand this study.”

nissim ziv presents What are your career goals? How do you plan to achieve these goals? posted at Job Interview Guide, saying, “When you are asked about what are your long term career goals, consider it as a chance to speak about how you are stable in your professional and personal life, and how you would like to grow with the company that you are working for.”

Joe Plemon presents This Family Paid Cash For Their Car; You Can Too! posted at Personal Finance By The Book, saying, “A story about some friends who are excited about paying cash for their car. Turns out they are doing lots of things right.”

Ryan @ CML presents Best Business Credit Cards posted at Cash Money Life, saying, “Best business credit cards for small business owners who need credit cards to help manage and run their business.”

Mike Piper presents Replacing the 2% Schwab Credit Card posted at The Oblivious Investor, saying, “2% cashback on all purchases is hard to beat. Unfortunately, the card is no longer available to new users. What’s the next best thing?”

Retirement Planning

FMF presents How to Catch Up on Retirement Savings posted at Free Money Finance, saying, “If you’re behind in saving for retirement, this post will give some suggestions on how to catch up.”

Jules Wells presents Retirement Calculator-Retirement Savings Software, posted at Retirement Financial Planning, saying, “This article helps you understand the trade-offs between traditional and Roth tax-advantaged retirement plan contributions, including Roth 401k and IRA retirement plans. It helps with the 2010 Roth conversion decision.”

FMF presents Three Good Reasons for Retiring and Three Good Reasons for Not Retiring posted at Free Money Finance, saying, “Three times you should and three times you shouldn’t retire.”

Jeff Rose, CFP presents Basic Rules of the Traditional IRA posted at Consumer Boomer, saying, “It is important to understand how each type of IRA account that will best meet your current and future needs. Here we look at the traditional IRA which is a popular personal savings plan and the basic rules of this type of account.”

studenomist presents Is Retirement Becoming Obsolete? posted at studenomics.com.

Jacob A. Irwin presents What Percentage of My Salary Should I Save for Retirement? posted at My Money Blog – Personal Finance and Investing, saying, “A look at a spreadsheet tool I created to assist readers in figuring out how much they should be saving for retirement.”

Larry Russell presents Roth IRA Conversions posted at Best Financial Planning Software, saying, “Trying to decide about a traditional IRA to Roth IRA conversion without first having a comprehensive lifetime financial plan in place makes absolutely no sense. Without such a plan, you cannot figure out whether or not you are likely to achieve the tax savings in retirement that would warrant paying higher taxes now.”

Michael Pruser presents How Much Dough Does A Roller Need to Retire? posted at The Dough Roller, saying, “Wonder what the magic number is to retire comfortably? We can help you out.”

Risk Management and Insurance

Jeff Rose, CFP presents Term VS. Whole Life Insurance- Which Is Best For You? posted at Consumer Boomer, saying, “Knowing which option is better for your unique situation depends on your understanding of what term life and whole life insurance policies are and how they differ.”

Big Cajun Man presents Self Insured Company Disability Plans posted at Canadian Personal Finance Blog, saying, “Sometimes insurance is not as safe as you might think (in Canada at least)”

FMF presents How to Know Whether or Not You Need Long-Term Care Insurance posted at Free Money Finance, saying, “Some tips on how you can determine if long-term care insurance is for you or not.”

Savings

Madison DuPaix presents 9 More Ways to Maximize Back to School Savings posted at My Dollar Plan, saying, “Great tips on saving during the back-to-school season!”

Joe Plemon presents You CAN Afford That Baby – Ten Money Saving Tips posted at Personal Finance By The Book, saying, “I want to assure you that you can afford to bring that baby into this world even if you aren’t sitting on a huge nest egg. These ten tips will help.”

Madison DuPaix presents How to Pay Your Mortgage with a Credit Card posted at My Dollar Plan, saying, “Here’s a great idea for saving on your recurring bills!”

Ryan @ MFN presents Military Savings Deposit Program (SDP) posted at The Military Wallet, saying, “The Savings Deposit Program is a government sponsored savings account that guarantees 10% return on interest for deployed military members.”

KCLau presents Are You Rich in Internal Assets? posted at KCLau’s Money Tips, saying, “pay attention to the internal assets”

Jim & Martha presents Royal Caribbean Cruise Lines Shareholder Benefits posted at Wanderlust Journey.

Taxes

Intelligent Speculator presents Please do not let the Bush tax cuts expire posted at Intelligent Speculator, saying, “It may be easier to take the popular position and have the Bush tax cuts expire, but I personally think otherwise.”

Brenta Bevis presents The Pros and Cons of Hiring a Professional Tax Preparer posted at Jeff Rose, saying, “As with most things in life, taxes are not always so black and white but can be extremely complicated and dependent on each person’s unique financial situation. While tax season is still far from the near future, I have learned that it is never too late to start preparing for your next tax return and doing so in advance will save you not only money, but perhaps more importantly, time. Unfortunately this is something that took me years to learn.”

Jeff Rose, CFP presents Things to Know About Paying Taxes on Earned Income posted at Jeff Rose, saying, “While there are many different forms of taxation, we are going to focus on income tax. This is the tax you pay on earned income. Here are a few things you should know about paying income tax.”

Jeff Rose, CFP presents Simple IRA Rules For the Small Business Owner posted at Consumer Boomer, saying, “The SIMPLE IRA is designed with small business owners and employees in mind. Where many smaller companies lack the resources to offer retirement plans to their employees, the SIMPLE IRA makes it possible for contributions to be made through salary reductions (for employees), while the employer can provide a matching contribution.”

Darren presents How To Determine If Your Social Security Benefits Are Taxable posted at MORE than Finances, saying, “You may think it’s unfortunate enough that social security taxes are already taken out of your paycheck each pay period. But did you know that when you receive your social security benefits in retirement, they may be taxed again?”

Financial Freedom Plan presents Roth IRA ConversionFinancial Software, posted at My Financial Freedom, saying, “The Roth tax optimization puzzle for asset conversions, as well as for annual Roth contributions during working years, is one of the most complex decisions that the ridiculously complex US taxation and retirement planning system forces upon individuals.”

That concludes this edition. Submit your blog article to the next edition of Carnival of Financial Planning using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: carnival of financial planning, blog carnival.

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As US indices continue to climb higher, it is becoming increasingly difficult to find buy candidates that are trading in healthy patterns and can still be bought for a reasonable fundamental price.  Many of the speculative names have been bid to levels that imply too much risk, and stocks that are trading at a lower PE are usually priced that way because of a problem with future growth.

But not Atheros Communications (ATHR).  The technology firm has a very unique product that allows consumers to use the electrical grid in their house as a means of bandwidth.  Imagine plugging your home router into the socket in your office, and streaming video to your television in your bedroom.  All without the headaches and service disruptions of a wireless router or some other form of transmission!

Far from a “one hit wonder” ATHR actually creates chips for a number of different communication mediums such as Bluetooth, WiFi, Eithernet etc.  But the recent $240 million dollar acquisition of Intellon in December allows ATHR to now market this new electric grid technology.  While the acquisition is only expected to contribute $20 million in revenue for the first quarter (about 10% of expected sales), the long-term potential for this cutting edge technology is exciting.

Most of Atheros’ previous growth has been from designing wireless chips for low-end laptops. That market can continue to be a cash flow driver, but management expects future growth to come from the explosion in smart mobile devices and the need for these devices to communicate on multiple types of networks.

Most new smart phones today have the capability to connect to WiFi networks as well as cellular telecommunications networks.  And consumers are increasingly considering these devices to be “staples” or non-discretionary items in order to stay in communication from both a personal and a professional standpoint.  Atheros is seeing demand accelerate both domestically and internationally which has led to a sharp increase in revenue and earnings.

Atheros considers itself to be a “fabless” chipmaker, meaning that they do not actually own their manufacturing facilities.  This can be either a wise business decision, or a liability depending on the market environment.  For difficult periods like the credit crisis of 2008, firms without heavy overhead burdens (such as the debt that usually accompanies a manufacturing plant) found themselves under huge fiscal pressure.  Atheros was able to escape that issue and continued to grow earnings in 2008 and 2009.

However, during periods of rapid economic growth and full capacity utilization, it might be hard to find a fabrication facility that would be willing to contract out for a reasonable price.  Supply and demand issues cause a little bit more uncertainty, but I would take that uncertainty over the financial burden of purchasing a new facility.

The stock is currently attempting to push through $40 which is a new all-time high.  But despite the rapid stock increase, ATHR is still trading for less than 20 times 2010 expected earnings.  And with a growth rate of 55% this year, the multiple certainly looks attractive.

Next year analysts expect growth to moderate to only 11%.  The view is that the expansion of mobile phone purchases will back off a bit and ATHR will see its revenue stabilize.  But the potentially huge market for electric grid chipsets could turn out to be the growth driver in 2011.  And while there is uncertainty surrounding the 2011 revenue stream, the market appears to be accumulating the stock with mutual fund managers adding to their positions.

I would recommend buying ATHR as it breaks through this level, but only risking about $4.00 per share on the purchase.  If ATHR backs off and hits $36, it means there is less institutional support than I expected and it will be worth stepping away from the position until the future earnings stream becomes more concrete.  But if ATHR continues to push higher as I expect, we could soon see ATHR trading at 30x the 2011 estimates which would put the price north of $65.

Risking $4.00 for a potential $25 gain is a fairly good trade in my opinion.

FD: Author does not have a position in stocks mentioned

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Welcome to the November 13, 2009 Edition #115 of the Carnival of Financial Planning.

The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security. 

This edition is arranged by subject heading, so that you can browse efficiently.

Enjoy!

The Skilled Investor, Editor

Budgeting

Adam Williams presents Eat food in your pantry, you’ll save money. Really. posted at RabbitFunds.com, saying, “I think we’ve all read articles talking about how we should make a shopping list before going to the store. We almost always make a list. And yet, we still have what I’m going to call “unintentional food storage.””

April presents Large Amounts Matter Too posted at Get Rich Slowly, saying, “Remember: Saving money on the little things every day is great, but saving money on the big things can make an awesome difference to your budget.”

Four Pillars presents Get Out Of Debt With YNAB – You Need A Budget Financial Software Review posted at Quest For Four Pillars, saying, “Indepth review of You Need a Budget software.”

Baker presents Budgeting Ups and Downs: October and Beyond posted at Man Vs. Debt, saying, “Ever since we’ve left overseas, our budgeting system has been on one huge roller coaster ride. I’ve outlined what we DIDN’T plan for and what areas we had success. What about you, though… how was your budget in October? What about November?”

Susan Saverton presents Personal Budgets posted at Family Financial Planners, saying, “When you don’t understand how much you spend and how much you save and invest, you do not have a financial plan. This dramatically increases your family’s long-term financial risk.”

The Debtress presents Financial Lessons from a Man Who Lives for Free posted at - The Debtress Blog -, saying, “Daniel Suelo of a Utah lives in a cave and has no money. Lessons we can all learn from his lifestyle.”

Wise_Bread presents The First Step to Budgeting posted at Wisebread.

Estate Planning

The Financial Blogger presents Estate Planning: 5 Reasons Why You Should Have A Professional Among Your Liquidators posted at The Financial Blogger, saying, “managing an estate is more complicated than simply writing a few checks! Fortunately, for those who can afford it, you can name a professional among your liquidators.”

Jeff Rose presents Your Estate Planning Checklist posted at Jeff Rose.

Financial Planning

Dividend Tree presents Building Core Competency for Long Term Survival posted at Dividend Tree, saying, “whether it is running a business or individuals’ investment portfolio, it is important to build a core competency for long term sustainability. In my case, I focus on good quality companies that consistently pay or have potential to pay growing dividends over time.

jim presents Conduct a Financial Fire Drill posted at Blueprint for Financial Prosperity, saying, “Conducting a financial fire drill is one of the most important financial planning steps you can take. You can make better decisions when you aren’t emotionally involved.”

Susan Saverton presents Financial Advisor Pasadena California posted at Pasadena Financial Planner, saying, “Appropriately setting your personal asset allocation in line with your personal risk tolerance is a critical decision for every investor. The percentages that are allocated to various asset classes tend to change slowly over time, so it is important to get it right at the outset.”

Financing a Home

Joe Manausa, MBA presents Home Buyer Tax Credit Expanded By Congress posted at Tallahassee Real Estate Blog, saying, “Congress has extended and expanded the homebuyer tax credit. The modifications will become effective when President Obama signs the bill, which could occur as early as November 6, 2009.”

Roshawn Watson presents Should You Buy A House Outright? posted at Watson Inc, saying, “Suppose you find yourself in the somewhat unique predicament of having the resources to purchase your house outright without a mortgage. Is it then financially-wise to make the purchase?”

Madison presents $6,500 Home Buyer Tax Credit for Existing Homeowners posted at My Dollar Plan, saying, “Great news for those planning to move soon! A tax credit for existing homeowners.”

Alex Fotopoulos presents When to Refinance a Mortgage? posted at My Trader’s Journal, saying, “Some key points to consider when refinancing your home.”

Financing Education

Praveen presents Will Education Follow the Housing Bust? posted at My Simple Trading System, saying, “Tips for students to avoid excessive loans and debt”

Health Care

Jeff Rose presents What’s the Best Health Savings Plan For You? posted at Jeff Rose.

PT presents Save Money on Health Care: A Quick Summary of Tax Advantaged Medical Savings Accounts posted at Prime Time Money.

KCLau presents Withdraw EPF Fund to Pay Insurance Premium? posted at KCLau’s Money Tips, saying, “Vincent Lee generously shares an idea to use your EPF”

Income

Ted Reimers presents Tips for making a Career Change posted at A Degree Online, saying, “The road to financial independence requires many changes. Here are a few tips when changing careers.”

nissim ziv presents What Are Your Salary Expectations? posted at Job Interview Guide, saying, “It is worth being prepared to answer this question wisely because you can, accidentally, make some critical mistakes that greatly weaken your negotiating power down the road.”

Dividend Tree presents Three Companies with Sustainable Dividends posted at Dividend Tree, saying, “Even in soft economic environment, there are companies out there that are continuing to increase dividends for their shareholders. While dividend increase is good, it is more critical to make sure we understand that companies can sustain their dividends.”

Investing

Soo-Young presents 10 Things Zombieland Taught Me About Stock Market Investing posted at Bullishness.com, saying, “Applying The Zombieland Rules To The Stock Market”

ABC presents Top Down Investment Approach posted at ABCs of Investing, saying, “An explanation of the “top down” investment method.”

Aussie Investor presents How To Buy Shares In Australia posted at Australian Investing, saying, “Investing in the stock market can be a rewarding experience, but where do you start? This post introduces the mechanics of buying shares. What sort of things do you need to consider beforehand and how do you actually go about making your first purchase?”

Zach Scheidt presents Blue Nile Reports Growth posted at ZachStocks, saying, “Blue Nile Inc. (NILE) reported earnings growth in the third quarter. The company is growing market share but the stock is simply overpriced. Watch for a 50% drop in the coming months.”

Super Saver presents Dow 10,000 3.0 – What’s Next? posted at My Wealth Builder, saying, “After the Dow crossed 10,000 in October, 2009, the big question is where next . . . up, down or sideways?”

Fred Elkins presents Diversified Munis Offer Good Value and Minimize Your Tax Burden « Finance Banter posted at Finance Banter, saying, “Diversified muni funds offer investors current income without increasing their tax liability. Here is advice on what to look for and a few core choices.”

Patrick @ Cash Money Life presents Best Discount Brokerage Firms posted at Cash Money Life, saying, “A list of the top online discount brokerage firms, including a short review of each to give information about what gives each brokerage an advantage over the others.”

Jules Wells presents Best Investment Strategy posted at Financial Planning Software, saying, “Personal investing seems incredibly complex, but the best investment strategy also tends to be a more simple investment strategy.”

Roshawn Watson presents Save For Retirement or Avoid Student Loans posted at Watson Inc, saying, “If a student is working and has acquired some cash, should he or she use that money to avoid future student loans or invest the money for retirement?”

Praveen presents Just Bought Hyatt Hotels (H) posted at My Simple Trading System, saying, “About Hyatt’s recent IPO and why its a good stock.”

Patrick @ Cash Money Life presents Alternative Investments to High Yield Savings Accounts posted at Cash Money Life, saying, “Looking for a safe place to stash your cash and still receive a decent rate of return on your money? Then check out this article, which lists several good safe investment alternatives to standard high yield savings accounts.”

Silicon Valley Blogger presents EverkBank Review: Online Bank For High Yield Investment Accounts posted at The Digerati Life, saying, “I look into some interesting CD products from Everbank.”

MoneyNing presents How to Get Your Wife to Invest posted at Money Ning, saying, “Talk and discuss. Learn how to get your significant other to invest!”

Control your Cash presents Reading this post will make you sound 477% more financially literate posted at Control Your Cash, saying, “What does Dow 10000 really mean?”

Curt presents How I Plan to Double My Money Twice Next Year posted at PennyJobs.com.

Zach Scheidt presents Blackstone Sees Improving Trends posted at ZachStocks, saying, “The Blackstone Group, LP (BX) reported earnings and the stock is trading sharply higher. The environment is improving for the private equity company as liquidity and risk premiums increase.”

ABC presents More Exciting Facts About Stock Indexes posted at ABCs of Investing, saying, “Some interesting facts about stock indexes.”

GeoffG presents Technical Analysis | Stock Market Timing Signals | Top Stock Picks » Blog Archive » Technical Analysis and Market Timing Update for 11/10/09 posted at Market Timing and Top Stock Picks, saying, “Want to know the best and worst time to own stocks. Use technical analysis and market timing signals for long term investing success.”

FMF presents Portfolio Recommendation Beats S&P 500 by 9.4% posted at Free Money Finance, saying, “Suggestions on a market-beating portfolio.”

lifestyles presents Chunking: Using Passive Income Streams from Real Estate to Pay for Chunks of Your Bills posted at Lifestyles Unlimited Real Estate Investing and Mentoring, saying, “Brian Lee addresses the concept of “chunking.” Pay off parts of your bills by investing in real estate!”

Frank Vertin presents Low Cost Index Fund posted at Best Index Fund, saying, “Buying an S&P 500 index fund through an investment counselor can substantially increase your initial purchasing costs and and drive up your annual management expense fees. Unfortunately, the vast majority of individual investors buy mutual funds and ETFs through brokers and investment advisers. Rarely do financial advisors recommend that you buy index funds with low fees. This is because low cost, no load mutual funds do not pay them as well as loaded, high fee mutual funds.”

Dividends4Life presents 4 Stocks With Higher Dividends posted at Dividends Value, saying, “Investing in Dividend Stocks is a long-term strategy. Frequent buying and selling of dividend stocks can significantly increase your expenses and taxes, thus lowering your returns. A growing dividend is a strong indication of a company’s increasing intrinsic value.”

ABC presents “Bottoms Up” Investment Method posted at ABCs of Investing, saying, “A short description of “bottom’s up” investing style.”

Steve Alexander presents Magic Formula Buyouts and Bankruptcies 2009 posted at MagicDiligence – Optimizing Joel Greenblatts Value Stock Strategy, saying, “In addition to normal capital returns and dividends, the Magic Formula has a knack for finding stocks that are good acquisition targets – but also some that go bankrupt. A look at some buyouts and bankruptcies on the MFI screen in 2009.”

Mike Piper presents Where to Rollover My 401k posted at The Oblivious Investor, saying, “For anybody who has left their job recently, one of the biggest questions is what to do with their old 401k. This article helps sort through the three major options.”

Tomas Escent presents Professional Investment Management posted at Nerds on Wall Street, saying, “Think of this book as sort of a Hitchhiker’s Guide to Wired Markets. There are no robots parking cars for six million years, but there are robots trading millions of shares in six milliseconds, so maybe that’s close enough.”

The Skilled Investor presents Investing Strategy posted at Personal Investment Manager, saying, “Investors more easily understand investment costs that are directly measurable, such as fees deducted on investment statements. However, many investors ignore or are unaware of the opportunity costs of their sub-optimal investment behaviors. Opportunity costs are usually much more difficult to measure directly, but these investment costs can be even higher than more visible investment fees.”

The Financial Blogger presents The Financial Blogger » Blog Archive » Canadian ETFs That Pays Dividends – Am I in Heaven? posted at The Financial Blogger, saying, “There are a lot of people that love dividends. There are 2 major reasons why so many investors love them. #1 they are usually issued by very stable companies which mean less volatility in a stock portfolio. #2 they pay quarterly income, which is great for revenue seekers.”

Mike Piper presents Is Technical Analysis Profitable? posted at The Oblivious Investor, saying, “An extremely thorough study was recently performed, testing over 5,000 different technical analysis trading rules. The results: Not so rosy.”

Diane Laine presents The Definitive Inverse ETF Guide posted at ETFdb.

Tushar Mathur presents Can’t Control the Markets? Try controlling the Costs posted at Everything Finance, saying, “As 2008 proved, the financial markets are prone to unpredictable periods of turbulence. That can make investing feel a bit like a roller-coaster ride. The disappointing results that many mutual funds posted in 2008 and at the outset of 2009 may have left you feeling concerned over your financial future. You’re not alone.”

Larry Russell presents NoLoad Mutual Funds posted at Best No Load Mutual Funds, saying, “Taken as a whole, the vast body of investment research studies show that there really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work.”

Zach Scheidt presents Rosetta Hits IPO Price – Lowest Trading Since April posted at ZachStocks, saying, “Rosetta Stone Inc. (RST) has traded below it’s IPO price, leaving all investors with losses. Weakness in consumer spending, and a difficult macro environment will likely continue to pressure this vulnerable company.”

Managing Debt

Darwin presents The Truth About Rewards Credit Cards – But, Is it Really True? posted at Darwin’s Finance, saying, “After ABCNews published some rather disturbing data on the spending habits of users of reward cards, it’s worth evaluating their assertions because Correlation is not necessarily Causation. Is this just sloppy reporting or is there something to be concerned about?”

Manshu presents Disney Rewards Visa Credit Card posted at OneMint, saying, “A look at the rewards and features of the Disney Visa Credit card.”

MoneyNing presents Credit vs Debit Transactions with Your ATM Card posted at Money Ning, saying, “Are there any difference with saying credit or debit when you hand over an ATM card?”

Tristan presents How Do Debt Collection Agencies Work posted at How To Eliminate Debts, saying, “A quick look at how debt collection agencies work with creditors to collect on delinquent debts.”

oneadvice presents Debt Management Solution posted at One Advice, saying, “Looking for a debt management solution which is right for you? Be clear and concise about your debt management requirements before signing ANYTHING….”

The Smarter Wallet presents How 0% Balance Transfer Credit Cards Can Save You Money posted at The Smarter Wallet, saying, “You can save money with the right kind of credit cards!”

The Dough Roller presents Balance Transfer Credit Cards posted at The Dough Roller, saying, “Balance Transfer Credit Cards”

Miscellaneous

FMF presents How to Buy a New Furnace and Air Conditioner posted at Free Money Finance, saying, “Keys steps to buying a great furnace and AC unit at a great price.”

No Load Bond Funds presents Low Cost Bond Funds posted at Bond Index Fund, saying, “Simply put, if you pay higher bond mutual fund fees, then these bond management expenses tend just to be a deadweight loss to you. The best bond fund buying strategy is to pick only very low-cost no load bond funds.”

Mike presents Journey of 1000 Miles: Part III of III posted at Minting Pennies – Personal Finance, Investing, and Microfinance, saying, “A post about finishing the journey to achieving good credit and reaping the rewards you are at the final destination. It is also about the importance of reaching out and helping others during your journey.”

Tom @ Canadian Finance Blog presents Do You Know If You Are Owed Money From A Bankruptcy? | The Canadian Finance Blog posted at The Canadian Finance Blog, saying, “To help you find out if you are owed money from bankrupt debtors, the Office of the Superintendent of Bankruptcy maintains an Unclaimed Funds Database.”

Frank Knight presents Identity Theft Prevention posted at Personal Financial Planning Software, saying, “Financial Planning and Identity Theft Prevention — Identity theft prevention is a key, but often overlooked, component of a prudent financial plan.”

Tyler Tervooren presents Stop Feeling Guilty and Go Do Something Awesome posted at Frugally Green, saying, “Guilt gets in everyone’s way. We use it as motivation to do all kinds of junk we don’t really care about, but think we should. What could you accomplish if you forgot about what everyone else thinks you should be doing and started making your own rules?”

Susan Saverton presents Personal Financial Strategy posted at Family Financial Planner, saying, “When pursuing optimal financial planning and investing strategies and controlling your costs and capital gains taxes, you also need to establish a time-efficient system to monitor, adjust, and adhere to your financial plan.”

Retirement Planning

FMF presents The World’s Best Places to Retire posted at Free Money Finance, saying, “One way to make your retirement savings go farther is to retire overseas.”

Jeff Rose presents 2010 Traditional and Roth 401k Contribution Limits posted at Jeff Rose, saying, “401k limits for 2010 have been announced.”

Patrick @ Cash Money Life presents 2010 Roth IRA Contribution Limits posted at Cash Money Life, saying, “The IRS recently released the 2010 Traditional and Roth IRA contribution limits. Now is a great time to get started on your retirement and tax planning for next year!”

Frank Knight presents Roth IRA Retirement Planning posted at Financial Planning Software, saying, “Roth IRA Retirement Planning — Deciding between traditional retirement plan contributions and Roth retirement plan contributions”

Jeff Rose presents What you need to know about your Medicare and Medicaid Benefits posted at Jeff Rose, saying, “Many seniors have misconceptions on the differences between Medicare and Medicaid eligibility benefits. Throw in long term care insurance, and the water gets even more muddier.”

Top Stock Index Mutual Funds presents Stock Index Funds posted at Top 10 Index Fund, saying, “To build your retirement portfolio, buy some of these top 10 very low cost no load S&P 500 index mutual funds directly. You do not have to pay the heavy added expenses of buying through a stock broker, financial adviser, investment adviser, or investment counselor.” 

Risk Management and Insurance

Patrick @ Cash Money Life presents Save Money on Auto Insurance Rates posted at Cash Money Life, saying, “Tips on how to save money on your auto insurance rates, including multi car discounts, multi-line policies, defensive driving courses, and more.”

Chris McClelland presents Things to not say to your insurance company posted at Lucrative Investing.

Patrick @ Military Money presents COBRA Benefits 2009 Economic Stimulus Recovery Act posted at Military Finance Network, saying, “The 2009 Economic Stimulus Plan includes additional COBRA and unemployment benefits.”

Savings

MBB presents Best Online Bank: Savings and Checking Accounts posted at Money Blue Book Blog.

The Smarter Wallet presents HSBC Direct Review: Top Savings Account posted at The Smarter Wallet, saying, “Reviewing an online savings account”

Four Pillars presents $8,000 Credit For First-Time Homebuyers Extended 6 Months – Not Increased To $15k posted at Quest For Four Pillars, saying, “Home buyers credit extended 6 months.”

Jody T Fransch presents The Law of Saving | jody fransch posted at jody fransch.

David Carlson presents Attitudes Towards Savings posted at Dual Income No Kids, saying, “This article is about American’s view towards saving and how we as a nation are saving less than the past. This is done through comparing past attitudes towards saving to today’s attitudes towards saving. It also talks about how saving can be more than just an emergency fund and can serve other purposes.”

KCLau presents Caring for the Elderly posted at KCLau’s Money Tips, saying, “Problems faced by the elderly”

Taxes

Super Saver presents End of Year Tax Planning – Deductions posted at My Wealth Builder, saying, “For me, October is a good time to review my 2009 financial status for tax return filing purposes. It gives me a few months to make any changes that can lower my taxes.”

Jacqulyn Richey presents First Time Home Buyer Tax Credit Extended posted at Las Vegas Real Estate News, saying, “Details of the extension of the 2009 First Time Home Buyer Tax Credit. A breakdown of who now qualifies, the new income limits and the extension deadline.”

Jeff Rose presents 2010 Traditional IRA to Roth IRA Conversion Tax Rules posted at Jeff Rose, saying, “Tax implications of converting from a Traditional IRA to a Roth IRA. Don’t forget the after-tax contributions.” 

That concludes this edition. Submit your blog article to the next edition of Carnival of Financial Planning using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: carnival of financial planning, blog carnival.

Zino,
Those are VERY good questions.  When I started blogging a couple of years I had no intention of moving towards being an investment advisor, partly because I wasn’t even aware of how a fully independent investment advisor worked and didn’t take the time to learn what certifications were needed until recently.  I’m still learning and planning how my company will work, but I now understand the flexibility I can offer clients while not overextending myself.

I consider an “investment” advisor and a “financial” advisor different.  I’ll go into it more eventually with a different post dedicated to just that, but one example is that I’ll only advise on investments, not insurance or estate planning.  Most financial advisors include a sales pitch for life insurance and annuities.  I don’t plan to move in that direction from where I sit right now.  Life insurance can be very important for most people, but I plan to specialize on investments.  I still am not a fan of mutual funds that many financial advisors recommend, not counting index funds.  The fees are too high and the tax implications can be poor choices.

I’ll have to re-write my trading model page, but I’ll be sure to leave that paragraph in to show how my thought process has changed.  Along with that statement, my thought process towards my trading model has changed as I’ve learned more too.  Readers’ comments such as yours in November 2008 helped push me to hedge more often. 

The way I’ll advise clients will be for their risk tolerance, not mine.  My record since April 2007 is documented, so it will be up to my clients to decide if it qualifies me in their opinion to manage the higher beta portion of their accounts.  My gripe with the writers who don’t document their “brilliant, no risk” trades still stands.  I’ve had only one trade in the past 26 months that I haven’t documented until the next morning and it was still before the markets opened, so I’ve lived up to that commitment.  I’ll have full disclosure on how I’ve traded my own investments.  Part of my personal portfolio management includes our savings in CDs and recently bonds too and our IRAs which I trade/invest differently.

I do want to make money from my investments, but for the foreseeable future I’ll need an income too and being an advisor will allow me to combine what I’ve enjoyed in my career with my hobby.  I’ll combine the helping of people that I enjoy from recruiting and will be able to add in my organizational and documentation skills I used more as a project manager.  Both of those jobs relied heavily on communication which seems to be a common complaint I hear about financial planners who are more salespeople than investors.  My work experience combined with my 20+ year hobby with the markets (I hope) will make me a better advisor who can listen and communicate well with clients.

I started blogging to learn from those more experienced, to teach those just beginning down the options path and to share ideas with everyone.  I continue to learn a great deal from My Trader’s Journal readers.  I recognize that I will always have more to learn.  What might separate me from some financial advisors is my love of the markets rather than just someone who is a salesperson in it to make money from dumping his or her clients in whatever mutual fund his mega-company’s squawk box told him to.  Writing this blog has moved me more towards this new career more than I ever would have guessed.  When I told my wife my plans, she replied, “It’s about time.”  It just seems to make sense based on my personality and interests.

Thanks for the comments!

He sent me the following screen shot of his trades.  You can see he’s starting small and staying small to get big.  His strategy is to make small gains every day.  He had a long streak that just ended with some small losses, but he doubled his account value in a month buy taking small bites.  His plan is to day trade and exit positions before market’s close.  He hasn’t stuck to that on each day, but bases his strategy around this.

I find it interesting to read other’s trading plans and details.  I’m assuming you do which is why you read my trade details, so enjoy another trader’s approach to working this market. 

This is most of an email he sent me that shows a new lesson he learned while developing this day trading strategy.

Alex,

Here’s a take what happens when you are on the wrong side of QQQQ options. A single call opened Friday (April expiry) is down 50%. Some May calls are down 25% and some June calls are down less than 20%. Opening calls Friday was a mistake, it wasn’t conducive at all to day trade Friday, and holding isn’t part of the plan. So things go wrong, but after Monday’s tiny move, I’m egged into holding longer to see if we follow our typical pattern of getting back what was lost. I’ll be more upset with myself the longer they are unresolved, primarily because both Friday and Monday were excellent trading opportunities, if done right. Which is why I may cut losses and re-assert myself to my day trade plans. Mixing longer term projections causes this. So, the main point is how easy it is to get off course from a simple day trade. Glad I showed you the other trades, because you’ve seen I know how to do them, and anyone can really. But, anyone can get bungled too!This is good knowledge to see, as I knew my consistency would be tested, but let’s just see what happens, it won’t be the end of the world.Also, the last time I entered in overnight I think I planned to enter differently, but in excitement Friday didn’t follow my plan.

• If the stock you purchase trades against you is there an adjustment strategy you utilize to lessen the shock of capital drawdown?

A month ago I might have answered differently, so keep in mind the foundation for my answer is flexibilty.  If I’ve been assigned a stock from a naked put or look like I’m about to I first have to decide if the stock is worth keeping.  If it is, I sell a covered call to try to keep a profit.  If it continues to drop, I have to reconsider and might sell an other call, although this one would NOT be covered, it would be a naked call and therefore a lot more risky.  I sold a naked call on AA a few months ago and wrote about it here.  It worked for me then as the stock came back above the naked put strike and stayed below the naked call strike.  That gave me a profit on both sides.  If it stayed down I would have reduced my cost per share by the amount of the call on top of the original reduction from the put.

• I read your article regarding exits with great interest today and I think you are absolutely right.  The exit decision should be predicated on decisions other than getting back to breakeven. I was wondering if you also wouldn’t mind elaborating a bit on the approach you take when assigned stock that goes far against you.  

If a stock moves against me farther than I can sell options on to recover to a profit I’ve made a mistake (just happened on MOT, GM and DOX this month) and I have to deal with it.  I can take it from a “start from scratch” point of view based on what I have now or dump it for a loss (as I did with GM and DOX).

• Do you have any conditional entry techniques that help you avoid getting caught in a stock like C?  Even though I have written puts and now selling calls on stock assigned, I am still underwater.

I try to avoid the obvious bad sectors and don’t try to time the bottom.  I’d probably have dumped C once all the bad news started coming out.  It’s hard to admit when you are wrong, but C is another example that just keeps getting worse every day.  Eventually it will find footing, probably, but for me it’s not worth guessing when I can find a better opportunity to trade elsewhere.  That’s the same reason I just dumped GM for a loss.  I made a bad trade and it cost me so I cut my losses and moved on.  If it goes up after I exit, then so be it.  I exited FWLT twice for a loss before getting in a third time for a profit.  The risk of a downturn wasn’t worth it for me to hang on the first two times, although the stock tripled when I wasn’t invested.  All I cared about was the premium, so up $1 or up $100 didn’t really matter.  My profits were limited by selling the option and I dealt with the loss by using my money elsewhere.

• The year you ended with a loss, even though it came on the heels of a 40%+ year, any lessons learned from the trading experience?

I was too new to investing in options then and got overextended before I understood the risks.  I set a rule for myself not to have less than 50% of the underlying stock available in cash (ie 2x cash).  I only let myself break that rule when I’m very far out of the money on a few positions and even then no less than 40% ever.  I try to stay away from stocks with very high p/e ratios and I try to diversify.  I updated my current portfolio page this morning to show how much I’m diversified right now.  That year I lost, I was overweight in tech stocks and when they fell I was slow to react. 

Keep a trader’s journal to allow yourself to look back on your successes and mistakes to learn from both.  I also try to sell naked puts farther out of the money if I’m not extremely confident on a trade or see an opportunity to just be a little safer on a high flier like AAPL or FWLT.

I think keeping your pride and greed in check are probably the two most imporant generalizations I can make on what I’ve learned so far.  Too much greed and you overextend beyond a reasonable level.  Too much pride and you don’t accept losses when you can.  Without losses I’d return better than 45% on a regular basis, but that’s not possible.  I’m going to make mistakes and need to accept that to really try to keep my returns above 20% for each year. I have been running around a 35% return for the past 12 months trailing most of this year, but with this recent pullback I’m back down to 21% for the past 12 months.  I’m still beating the indexes, but now with a more sustainable level that includes more than one bad month.

• If you were going to target lower returns, with accompanied low volatility, how would you do it?

I don’t necessarily target lower volatility, I target stocks that are on the lower end of their trading channels and off their highs usually, sometimes these are still very volatile stocks.  Then again, if I see a stock breaking out to new highs I’m willing to sell puts on it too.  I also don’t like to sell stocks with high p/e ratios.  That was part of my problem in my losing year.  I did well with most of my picks, but the few bad ones sank me.  Along that same thought, I have learned cut losses before they sink me. 

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First, I had 14K in PUTS I bought and lost 11K the day of the surge. My account balance was $38,000 end-of-May. Today I have just $8,000. I managed to lose 30K in just 3 months! Good for me! No, seriously, this is the case. My wife and I are dealing with the setbacks very well, as I am in the military with good security, and the chance to “do-it-all-over”. Here’s something I want you to twirl in your mind a bit. Because of your family’s new highs of 68.5 with another deposit soon, leading you to deal with seemingly larger sums to play if you can’t find enough plays, think about my case. I was the same way in that when I had the 38K, I didn’t realize HOW MUCH it was, and simply did not diversify and was overloaded in plays. Then, of course, after the first bad play, desperation led me to chase profits back in the riskiest ways. Humans can be so foolish. Well, we both know you have never overloaded, and it seems as though you mentioned putting 25K in a safe place somewhere simply because the overall balance was rising, and you still sold puts.I would have gotten to 50 thousand, which is still half of my overall goal of 100K, if I would have pulled some of “it” aside such as you did, and stuck with the normal sized trading I was used to.

Naturally, you may be shocked that I allowed the prior 3 months experience in options to get me, but it can happen to anyone, and my hands have been burned. So, I’m planning to go back to my original working strategies of owning stocks and writing calls, but again, I will be open to selling puts, and still may even trade options-knowing of course that I have to “win” sometime.So, here is my concept for you. Choose an amount, any amount of the 68K, whether it’s 800 bucks, 8000 dollars, or 18K and do something completely different with it. For example, imagine if I’d just bought a car, or used money down in a house, or financially socked CD’s or zero coupons. None of these things yield the results you are accustomed to or I want either–which is why I guess I didn’t do it, or that the thought didn’t occur to me too well. But for your overall wealth, you don’t need all of it in your trading model anymore. Even if you did a wait-and-see for 6 months with 18K in a CD, and traded the rest, you would feel safer and not have to worry about larger sums in play or having enough plays. Plus, you couldn’t lose the CD in the way I lost the huge sums I did. Think about getting to 100K slower, but guaranteed. Just imagine, if I now have to make 92,000 to get to 100,000 but you need just 30,000. My point is I was at nearly 40,000 3 months ago, and thought 50,000 was a guarantee. Well, it’s still achievable, but obviously at much later dates. As always, my enthusiasm and future hopes remain high, but my curiousity in options and greed, and overall lack of planning has temporarily sabotaged me.

So, if I wasn’t successful lately, at least I can encourage you to make it and do it right. I will start again of course, and don’t worry I’m taking it well. But, as I follow your blog, I don’t want to see you run into any difficulties. Recognize some of your current success for what it is, but avoid doubt. Be careful about changing how or what you do–I changed things in June and it was wrong. Check your greed factor, that I know you have, and ask how willing you are to take even 500 or 1,000 and just go SPLURGE on you and your wife. You deserve it, and it may help you focus on exactly how you want to proceed.

Bottom line, my recommendation is go spend something “wasteful” financially but practically beneficial on your family, then consider what you can ADD to your wealth plan, such as doing a zero coupon bond, or pulling some of it aside for the real estate you mentioned before. Diversity doesn’t have to be just in your put plays. Even if you didn’t profit as much as fast in near term, WHEN YOU HIT 100,000 you would be so happy. It won’t be long because you see how quickly the balances can rise when you do your model well. But, please, make the goal without the worry and pressure hassles I just went through. Being wise isn’t easy, being foolish is very easy. I would never have enjoyed your blog in April if I didn’t respect your story and your judgement. So I know you can take today’s story with a grain of salt and make your own choices.

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This is a great (sad) story of how easy it is to get carried away with options.  These are my take-aways/lessons learned:

1. When buying options, use a small portion of your account.  The percentage gains/losses can be so big the majority of your account is not needed.  Just last week Kadena commented about a 20% gain he made in a few days.  With gains like that, small positions is all it takes to beat the indexes.

2.  Avoid desperate moves.  Reacting to a loss by taking a bigger risk is a recipe for disaster.  It’s best to step back, figure out what went wrong and start over.

3. When learning a new trading strategy, ease your way into it.  What worked for this trader at first backfired on him as his trades got bigger.  Had he practiced his trading model for a longer “grace” period before putting so much of his portfolio into it, he might have learned how quickly options can turn against you just as easily as they can make a year’s worth of gains for you in a week.

4. It takes a big person to admit when he makes such a big mistake and a very smart person to learn from it as this trader did.  My compliments to him for learning from it and sharing his story with us.

Other thoughts/clarification:

1. I have been overloaded like he says he did, but I did it when my account balance was under $10k and I learned not to repeat those mistakes again.  I’m certainly not above making big mistakes.  I just try not to repeat them.

2.  The $25k I wrote about putting in another place is now $30k as I added to it last month.  To clarify what I did though was not to withdraw it from my brokerage account, but to use the cash I had for reserves into a money market until I needed it.  I still base my puts on having that cash available, I just earn a bigger return on that cash while it sits and waits for me to use it.

3. I also own CDs in another account and keep that 100% seperate from my trading account.  We have ~$31k in that account, so we’re actually at the $100k mark now including what we keep in CDs as a cushion for life’s unexpected expenses or lack of jobs.  Establishing this safety net was a priority for us before moving to a larger investing account.

4. I don’t withdraw from my investing account for personal use.  This account is only there to grow until we diversify into real estate or I’m unemployed and need the income from my trades and that’s only after we use up our cash in CDs from the other account.  I would not consider using this trading account for buying a car or other household item.

5. We plan to buy a car next year, but after we hit the $100k mark in our investing account.  I’m not looking at any “treats” for myself before then.  I’m so cheap that when I buy a Coke with my lunch I feel I’ve treated myself.

Technorati Tags: buying puts, investing, stocks, options, options strategies, trade, finance 

Today I opened 5 different kinds of bull plays on AIG.
The first is simply bought stock in my E*Trade account for the long term, so no expiration here to worry about.  Very timid, 20 shares at 65.85.  The other 4 plays are option moves in TOS broker.
1. Single call buy Jan08 60 strike for $970.
2. Single call vertical contract buy Jan08 55/60.  Paid 13.60 for the 55 side/received 9.20 for the 60 side (hedge) total paid $440
The total risk in these 2 purchases is $1,410.  Profit potential of mere $60 for vertical at expiration or can trade the vertical for profit if situation arises.  And the call can be sold for unlimited profit if AIG moves up.
3. Single put naked sell Jan 08 50 strike for 1.10.  credit if AIG remains above 50, $110.  potential to trade ahead of time
4. Single put vertical sold Jan 08 60/55.  Received 2.85 for 60 side/paid 2.00 for 55 side(hedge) total received $85
 
I wanted to work off of 60 strikes for Jan, except for the naked put went all the way down to 50 strike.
Best scenario credits of 110 and 85 for bull put positions, bull call positions set up for 60 on vertical , and unknown for the call, so 245 plus
Loss scenario, well let’s just monitor the stock, AIG

I picked AIG because it came up in my Aug p&f list I built, and being alphabetically at the top was the first i spent the most time looking at the chart.  Certainly, the stock could revert down and all the bull options will suffer, but I agree with the p&f long term in a price rise.  So I am trying to balance long and short term ideas.
Actually, something very strange last night in looking at price charts was that most of the stocks which had the + in my p&f appeared to be ready for price dips, while the ones with – price targets appeared to be ready for price jumps.  Not sure why, but know it is important.

Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade