Greetings and Happy New Year! Some 4,000 years ago, the Babylonians rang in the new year by making promises to pay debts and return borrowed farm equipment. Since then, people across the globe have rung in the new year with vows to make improvements in their lives. Like magic, the stroke of midnight sends folks scurrying toward the shiny, hopeful …
It’s Not a Race: Considerations for a New Year
One recent, unseasonably mild late afternoon, I hopped on my bicycle toward my regular mid-week basketball game. A main nearby boulevard has a bike lane, and heading out, I felt great. A comfortable breeze. A nice, easy pace. As I pedaled, I could feel, over my left shoulder, an approaching presence. I turned to look, and what I saw was, candidly, …
Just Give: Resources for Philanthropy & Thoughts on Effective Altruism
For those of us fortunate enough to have the interest and financial capacity, the end of the year is often the time to make charitable gifts. Many of you contribute to schools you attended and local non-profits, and those gifts are typically much needed and appreciated. In addition to the good these organizations are doing in the world, there is …
One Step Forward, or the Fragility of Recoveries
As occurred in July through mid-August of this year, stock markets around the world have seen significant gains in October and November 2022. The total US stock market rose about 8% in October and 5% in November. International stocks increased 3% in October and 13% in November. Bond prices have also gone up recently, with gains between 1.5% and 4% …
Tax Loss Harvesting: Silver Lining in a Down Market
With stock and bond prices still down significantly for 2022, one opportunity for a “silver lining” comes in the form of tax loss harvesting. This involves selling investments in taxable accounts that have declined in price, thereby “realizing” losses. (Tax loss harvesting doesn’t apply to retirement accounts like 401Ks and IRAs.) These losses can be used to offset gains from …
The Financial Perils of Herding
In recent weeks, the cryptocurrency industry has dominated financial headlines due to the bankruptcy of FTX, a popular crypto exchange. As an exchange, FTX allowed people to buy, sell, and trade digital currencies. The collapse of FTX began when reports surfaced about the company’s financial structure and levels of debt, which caused the price of FTX’s own “native currency,” the cryptocurrency …
A Thanksgiving Walk in the Woods
A few days before Thanksgiving, motivated by above-freezing weather and a late-afternoon urge for outdoor time, I bundled up and biked a couple miles to a favorite woodsy hiking trail. Often when I walk this trail it is empty of other people, and so as I pedaled, I presumed the same would be true. But as I turned into the postage …
How to Invest According to ESG Principles
This week’s Life with Money is our second installment on ESG investing. Last time we discussed various definitions and reasons why people might opt to invest in this way. One key takeaway was that “sustainable investing” is a general umbrella term, whereas Environmental, Social, and Governance (ESG) investing uses data to measure the sustainability of a company (both financial and in …
Pledged Asset Lines: Features and Updates
Many of PPA’s clients have short-term funding needs. The reasons vary: Some people require infusions of cash between pay checks, including those paid once a month, once a quarter, or only after completed transactions. Others need cash to make a down payment on a new house before their current house is sold. Still others want to finance renovation work on …
The Stock Market Isn’t the Economy
Stock market performance in 2022 has been dismal. Through October 31, the S&P 500, a broad measure of large companies in the US, had declined 19%. The causes have been diverse: The highest overall inflation in 40 years. Interest rates that have spiked, with the 10-year US Treasury yield rising from 1.5% at the end of 2021 to over 4% …