SavvySugar

Blame Your Genes If Market News Makes You Anxious

SavvySugar — Mon, 16 Feb 2009 04:30:49 -0800

If your nails have taken a beating along with the economy, you might be able to blame your genes for desperately needing a manicure. Nail-biting nerves are genetic, according to new research - the study showed that a person's ability to deal with market turmoil is linked to her DNA.

Subjects' DNA was tested for variations of serotonin and dopamine which are thought to be impact risk-taking behavior, and the data was used to identify individuals with high-risk profiles or high-anxiety profiles. The participants were given money and told to invest it however they wanted, and the previously identified high-anxiety individuals invested 28 percent less money in risky investments than their high-risk peers.

Still, researcher Camelia Kuhnen acknowledged that experience has a lot to do with how much risk a person can handle and said, "People may learn a lot from this crisis."

Source

Have We Seen the Worst of the Financial Industry's Problems?

SavvySugar — Tue, 25 Nov 2008 04:30:11 -0800

Another week, another bank bailout. The most recent recipient of government aid is Citigroup, and the government's bailout package includes a $20 billion investment in the company and a $306 billion guarantee of risky assets.

Monday's market close was met with cheers as investor enthusiasm sent the market soaring, reflecting a general investor bet that the worst of the financial industry's problems may be over. Do you think we've seen the worst?

Source

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!

Source

Take the quiz

Watching the Market Will Drive You Nuts!

SavvySugar — Fri, 19 Sep 2008 04:00:34 -0700

Most of you aren't fans of the government bailing out private banks, but the market reacted more than kindly to the government's announcement that it may create an agency to buy bad debt from banks. Bad debt refers to the mortgage-related assets that were the Achilles heel to once Wall Street giants Lehman Brothers and Bear Stearns.

The market showed its largest percentage point gain in six years but is still down for the week. What's with the fluctuation? Markets are always sensitive to news, but a week of unexpected headlines has created an even more volatile market. For the moment, investors feel reassured that the government is planning a large scale bailout that is aimed at containing the credit crisis.

Source

Bull Market vs. Bear Market: How Money Are You

SavvySugar — Thu, 04 Sep 2008 12:30:59 -0700

Just as political parties have their token animals, so do market conditions; a bull and bear are used to characterize the state of the market.

The terms are often thrown around by financial news personalities and are on the tips of investors' tongues. Do you know the difference between a bull and bear market?

Source

Take the quiz

Three Tips For Sticking to Your Retirement Savings

SavvySugar — Wed, 16 Jul 2008 08:02:04 -0700

Unless you're hooked up with a bullet and foolproof investment plan, chances are your retirement savings have taken a beating over the past many months. You're not alone! My 401(k) has been dragged through the trenches and the result is not pretty.

Am I a sucker for pumping monthly contributions into my retirement investments? I'd like to think not, though it's tough to contain my frustration when I peek at my account's worth. Find out what rationalization I use to make myself feel better when you read more.

Here are the little gems I use to tell myself in the end, it's all going to be OK. Hopefully they'll help you feel the same way about staying on track with your retirement savings.

I'm in this for the long haul. Retirement savings are for the future and aren't to be touched any sooner than your golden years. My investment plan reflects a long-term strategy and I trust that it will serve me well in the end.
I can't control the market. The market is a cycle and it's currently at a low point. While the account's total worth is lower than I've seen it before, I'm getting more shares for my money by buying them at their cheaper price. If history is any example, the cycle will come around and turn around this bear market.
I'm not alone! Staring at your dwindling account value might lead you to conclude that you have bad luck. If that were true, than most investors would be unlucky, too! There's no glass ball predicting the future, so acknowledge that the market is in a slump and move on.

One final tip: Don't check your retirement accounts often. I only check mine about once a quarter, because there's no point aside from fulfilling curiosity. It's always a good idea to make sure your investment plan meets your risk tolerance and time horizon, so review your accounts and see if they need to be rebalanced to meet your investment goals.

Source

On Board and Ready To Buy

SavvySugar — Tue, 17 Nov 2009 17:41:23 -0800

In a new move to up their retail, airlines may soon be offering more in-flight opportunities to purchase anything from limousine services to Broadway theater tickets. Though The New York Times reports that only American Airlines has begun limited testing of the retail concept, nearly all airline carriers have confirmed that they are planning to unveil similar expanded retail offerings on flights.

So why expand retail, especially in the midst of a recession? Well, according to SkyMall president Christine Aguilera, airline passengers are "some of the greatest consumers on the planet," simply because they've got nowhere else to go and nothing else to do. This aspect makes "onboard" retail unique because, frankly, "operators are able to lock their doors with their shoppers still inside."

To learn more about airline retail, keep reading

Savvy Links: Don't Fall For Sneaky Tricks While Shopping

SavvySugar — Tue, 17 Nov 2009 04:00:27 -0800

Don't fall for these sneaky marketing tricks while shopping. - Glamour
Is there a generation gap in savings? - Get Rich Slowly
The job market will rebound a lot sooner than expected. - Slate
How to spend smarter this holiday season. - Consumerism Commentary
A mouse pad and a weekly to-do list in one. - GeekSugar
How to start investing. - Kiplinger

Grind Tip: Catch Up on Tracking Your Accomplishments

SavvySugar — Sun, 15 Nov 2009 04:30:55 -0800

The majority has spoken, and 87 percent of you plan on looking for new jobs when the economy takes a turn for the better. Be prepared for a stronger job market by taking stock of your accomplishments now.

Keeping an up-to-date resume is the best way to stay on your toes during any job market. Besides making sure your resume is current, you should keep detailed notes of specific projects you worked on, your individual contributions, instances when your problem-solving, leadership, or intuitive skills shined, etc. Your resume will quantify your accomplishments, but you'll need to discuss them in detail with a potential employer and this exercise will save you from having to rely on distant office memories.

Ask Savvy: Should I Buy a New Car?

SavvySugar — Wed, 11 Nov 2009 12:00:57 -0800

Dear Savvy,

I recently got a letter in the mail from a local car dealership requesting that I trade in my 2001 VW Passat, saying that they are getting lots of requests and stating the blue book value for my car. I wouldn't mind buying a new car, but promised myself I would drive my car until it is unrepairable or I graduate from college, whichever comes first. I still have two more years to go, but if this offer is legitimate, I don't want to let the opportunity go. Any advice?

Savvy says: The car dealership is reaching out to people who aren't in the market for a new car and convincing them to consider busting an auto move. That's a pretty successful campaign on its part, but are your best interests at hand? Find out what I think when you read more.

You have a car that isn't causing you headaches and you're still in school, which makes me assume that you're probably better off without the additional expense of an updated vehicle. While trading in your car would reduce the cost of the newer one, I'd put money on you walking out of the dealership with more bills to pay than when you walked in.

Car dealerships are fantastic at making us think the deals they're advertising right now are once-in-a-lifetime bargains that won't be seen again. They want you to worry that you'll regret not jumping on their current offerings so that you buy now instead of later, and as you put it, you don't want to "let the opportunity go."

Bottom line, a deal isn't a deal unless you're shopping for something in the first place and can afford the terms. And that lost opportunity? Think about the money you'll save by keeping your current ride for the next couple years, and don't be surprised when there are deals to be had when you're in the market for something different.

Have a question for me? Ask away by posting your questions in my Ask Savvy group and I may answer it on the site!