Novel Investor

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Happy Hour: Election Spending And Not Voting

by Jon

Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Election Spending

The amount of money spent to attract your vote is mind-blowing.  The political spending inflation has skyrocketed over the past several decades according to CNBC.  With $1.6 billion dollars spent already by the two presidential candidates alone, it’s a wonder how they both don’t get elected.

Since election day (November 6) around the corner, you can expect even more money being thrown away.  And you can follow along at home thanks to the New York Times Money Race.  When everything is said and done, we’ll be looking at over $2 billion spent for the presidential seat.  It’s a dollar or two more than necessary.

So my question is, how does a losing (or winning) candidate rationalize spending that amount of money?  Maybe that should have been a question for the debates. Continue Reading…

Higher 401k Contribution Limits For 2013

by Jon

401k Contribution Limits 2013The IRS increased the amount you can save for retirement with a slight boost to the 401k contribution limits for 2013.  Every year the IRS must calculate cost of living adjustments for the 401k and other retirement related plans when the CPI (Consumer Price Index) hits a certain threshold.

This year the CPI was high enough to call for an adjustment to some, but not all the 401k limitations.  The only change was in the maximum contribution limits.

Maximum 401k Contribution Limits

Starting in 2013, the IRS will increase the 401k and Roth 401k contribution limits to $17,500.  That’s a $500 increase over the 2012 401k contribution limits.  Which is about $42 more per month you can put away for retirement. Continue Reading…

Happy Hour: Political Fun And Job Promises

by Jon

Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Political Fun

It’s too bad presidential elections only happen once every four years.  The comedic fodder generated from late night talk shows and SNL makes me wish it happened more often.  Now it seems the Democratic National Committee is getting in on the act with the Romney Tax Plan website.

I back them 100%.  No, not the Democrats!  The comedy writers bringing us some laughter amid all those excruciating commercials.  As soon as the Republicans get in on the act, I’ll be sure to share. The Republicans can be funny too, right?

This is NOT an endorsement of Barack Obama or Mitt Romney.  Just of websites that make fun of them.

Job Promises

There’s a reason why politicians are targets.  Most of the stuff they spew forth is done in the hopes that a few unconvinced voters will actually believe them and vote.  Thankfully most of us are smarter than that.  Right? Continue Reading…

The Best Reasons To Sell A Stock

by Jon

Sell A StockThere is an art to selling stock, or more importantly, knowing when to sell a stock.  Which separates the good investors from the great ones.

In this case selling a stock leads to making a profit or taking a loss.  Yes, taking a loss on purpose is a strategy.  It may not seem right on the surface.  But it frees up money, in what was a poor investment, so you can put that money to work somewhere else.

There’s also the other side.  Where investors sell too early.  Happy to make a small profit only to watch the stock double or triple in value over the next few years.  There’s nothing wrong with locking in a profit.  But if the company is still chugging along and nothing has changed, why would you sell a winner?

Unfortunately, investors are driven by a number of irrational issues that make us do things we really don’t want to do.  The best example is holding a stock that has fallen hoping it will just get back to even.  This is especially true when no amount of time will return it to its previous mediocrity.  You’re better off selling early, take a loss if necessary and put that money to work somewhere else. Continue Reading…

Happy Hour: Bald Advantage And Worst Sound Ever

by Jon

Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Bald Advantage

In the world of business, perception is everything.  When it comes to hair, bald is big.  A new study by the University of Pennsylvania’s Wharton School says that men with shaved heads are viewed as more dominant, masculine, taller and stronger.  Guess there’s no need to hit the gym anymore.

Don’t grab that razor just yet.  There were two downsides to the study.  Those with shaved heads were viewed as less attractive and older.  So before you go razor shopping, you’ll have to weigh your options.  What’s more important: looking better at work or just looking better in general?

Worst Sound Ever

Sticking with the topic of studies, scientists at Newcastle University finally figured out the worst sound in the world.  And no it’s not fingernails on the blackboard.  That fell to number five.  The study conducted tests with 74 different sounds.  The volunteers were hooked up to an MRI to see the brains reaction to each sound. Continue Reading…

Happy Hour: Earnings Season And Proposed Debate Changes

by Jon

Welcome to the end of the week and another edition of Happy Hour!  Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Earnings Season

The third quarter earnings season starts next week.  The past three months we’ve seen another Fed QE program, a nice rally in the market and a boost in the housing market.

Yet, the economy has been in slow motion all year.  With so many unanswered fiscal questions ahead, now is a great time to hear what companies have to say about the future.  What’s the outlook for next year?  Any concerns?

These earnings reports and changes in forward guidance numbers should hint at what the CEO’s are thinking.

Proposed Debate Changes

The first of three presidential debates was this week.  The question becomes, with a month to go before the elections, did we learn anything? Continue Reading…

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