SavvySugar

What $100,000 Would Have Bought 10 Years Ago

SavvySugar — Sun, 04 Oct 2009 06:18:50 -0700

You may not have thought about what $100,000 would have bought in 1998, being that many of us were at the prom and watching non-rerun episodes of 90210. But 10 years later, money is on all of our minds, and maybe we worry a little more than we'd like. Most of us have a much better understanding of the value of a dollar than we did back then and can now truly get a feel for some of the surprises in terms of what $100,000 would have bought in 1998.

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How Much Has Google's Stock Gone Up Since It Went Public?

SavvySugar — Fri, 21 Aug 2009 06:30:59 -0700

It's been five years since Google went public in August 2004, and shareholders who purchased stock early should be more than pleased with their investments. Since the search engine's debut, Google has transformed into an Internet giant that's more than a noun.

Celebrate the company's success (where would you be without it?) by taking a guess at how much the stock has increased in value since it went public.

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Warren Buffett Wants Kids in His Secret Millionaire's Club

SavvySugar — Mon, 27 Jul 2009 10:30:46 -0700

Some investment managers bid millions of dollars to have lunch with Warren Buffett, but kids will soon be able to benefit from his expertise for free through a new series of webisodes. The Secret Millionaire's Club is an animated series that features Buffett in cartoon form giving guidance on money matters to a group of kids. Don't expect lectures from the Oracle of Omaha; the interactive story lines are developed to keep kids' attention and inspire them to form healthy habits at a young age.

Buffett spoke with CNBC about the project, and while he's not the one writing the scripts, he believes in the importance of financial education and is lending his voice for free. He said:

If we can get through to some young people, say it's better to be ahead of the game than behind, watch out for credit cards, most important message is the best investment you can make is in yourself. Teach them if something is too good to be true it probably is. So if they learn those things the easy way through these stories early on it may save them learning the hard way later on.

To see a video of The Secret Millionaire's Club, read more.

Lunch With Warren Buffett: Guess How Much?

SavvySugar — Sun, 12 Jul 2009 05:30:19 -0700

Advice from a great business mind like Warren Buffett does not come cheap, as demonstrated by the amount raised by his annual charity auctions that award the highest bidder lunch with the billionaire. The auctions benefit Glide, which provides social services to San Francisco’s homeless and poor. The 2009 auction winners are a group of Canadian investment managers - can you guess how much they paid for their future lunch with Buffett?

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President Obama Discloses His Personal Finances

SavvySugar — Mon, 18 May 2009 04:30:23 -0700

For all of the security it takes to protect the president and his family, the Obamas don't exactly get much privacy. A disclosure of President Obama's personal finances was released on Friday, making it clear he's a pretty conservative investor, his daughters' educations are a priority, and he's got enough cash for a rainy day. The numbers were provided with pretty big ranges, but here's a peek inside Obama's finances.

He has between $101,000 and $265,000 in two checking accounts.
There's between $100,000 and $200,000 in two 529 educational savings accounts for the First Daughters, Sasha and Malia.
Obama plays it safe with most of his money, investing between $1 million and $5 million in U.S. Treasury bonds.
His stock market exposure is mostly limited to between $115,000 and $250,000 invested in a mutual fund, the Vanguard FTSE Social Index fund (VFTSX).

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Madoff Devil Doll Comes Equipped With a Hammer

SavvySugar — Wed, 18 Feb 2009 13:30:55 -0800

A toy-maker with a sense of humor is hoping to help investors channel their anger toward alleged $50 billion Ponzi schemer Bernard Madoff. The accused investment manager's action figure is wearing a red outfit and holding a pitchfork accessory - subtle, right? A hammer for smashing the "Made Off With My Money" Madoff replica is included in the package.

The $100 handmade dolls could be a good stocking stuffer (thinking ahead!) for anyone who has been affected by the scheme, or just downright sickened by the whole thing. It was showcased at this week's Toy Fair in New York and immediately became popular. Frank Pizzaia, a toy store representative from New York commented, "I like the idea if it comes with a hammer. It is a good idea for people who want to get rid of their anxiety."

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How Money Are You: Match the Company to Its Stock Ticker

SavvySugar — Fri, 14 Nov 2008 07:15:34 -0800

We've been watching the market's volatile ebbs and flows and let it affect our moods since summertime. Following the stock market isn't necessarily the most productive way to worry, but many people just can't keep themselves from finding out how far the Dow dropped for the day. Publicly traded companies make up the stock market - can you match the company to its stock ticker? Take the quiz!

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Definition: Fear Index

SavvySugar — Tue, 21 Oct 2008 15:30:24 -0700

Introduced in 1993, the Chicago Board Options Exchange Volatility Index (VIX) measures market volatility and gauges investor fear, which explains its better known name - the fear index. Right now VIX is trading very high and indicates that investors are uncertain about how the market will perform over the next 30 days.

Current levels suggest that investors think the S&P 500 will fluctuate about 20 percent during the next month, something The New York Times calls "an almost unheard-of swing." While the index reports a good track record in gauging the market, like the upswing after 9/11, some traders see the attention on VIX as adding to the problems and sustaining fear of the market.

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Fear May Be More Powerful Than Greed

SavvySugar — Fri, 10 Oct 2008 15:30:26 -0700

As much as we utilize logical ways to cope with the economy, our brains are wired to work a certain way. I'm no scientist, so I'll let MIT Professor Andrew W. Lo do the explaining. According to Lo, the amygdala controls fear and responds more quickly than parts of the brain that handle cognitive functions. Because of this, he suggests that fear may be a more powerful force than greed.

Simply put, Lo says, "The loss of $1,000 has a much bigger impact than the gain of a $1,000.” People are more willing to take risks when it prevents them from losing money rather than take risks to earn more. A 1970s experiment asked students if they'd choose a sure bet and win $3,000 or an 80 percent chance of winning $4,000. Then, the same group was asked the same question worded differently; would they rather lose $3,000 or accept an 80 percent chance of losing $4,000? In the first scenario, most chose the $3,000 sure bet, and in the second scenario, most went with the riskier option.

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Four Ways to Get a Grip on Your Finances Right Now

SavvySugar — Thu, 02 Oct 2008 12:30:29 -0700

While there's no doubt the heads on Capitol Hill are spinning with what's been happening in our economy, it's not exactly a picnic for those of us feeling like we have a million and one unanswered questions. Watching big banks collapse and listening to what the news tells us was a horrendous day for the market, followed by the worst day ever, doesn't do much for the people anxiously sitting on the sidelines. Here are three things you can do right now to get a grip on your finances.

Spend wisely and save as much as you can: Sometimes, it's easier to turn a blind eye on the things that make us anxious instead of dealing with them. Now is not one of those times. Buckle down on your budget and figure out how you can save more.
Pay off debt: The economy has already lost 605,000 jobs this year and that number is likely to continue growing. You need to get aggressive with your debt (especially the high interest kind) in case you find yourself jobless - you'll need your savings for everyday expenses instead of debt repayment costs.

See two more ways to get a grip on your finances right now when you read more.

Make sure your bank is still the right one for you. The banking industry is moving toward consolidation, as we've see in recent weeks with JP Morgan Chase's purchase of Washington Mutual and Citibank's purchase of Wachovia. We could be seeing more of this movement in the months to come, so keep an eye out for any changes in fee policies that might not be favorable to you.
Review your investments: See that your asset allocation is appropriate for your risk tolerance and time horizon. If your portfolio's risk makes you anxious, it could be a sign that it's time to reevaluate your investments.

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