Archive

Monthly Archives: April 2006

Kelly Criterion For Stock Trading Size

I’m sure some people know about Efficient Frontier, but I’m guessing that there are less investors that know about Kelly Criterion. So what is Kelly Criterion and who is Kelly? Kelly worked at AT&T, and published the original paper back in 1956. Its math is quite involved with communication and information theory, mostly dealing with […]

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Saving On My Car Insurance

I’m paying $529.60 a year for car insurance on my two cars. It’s probably not easy to pay a lower amount than this. I think there are four major reasons for this low rate: Both my wife and I have a clean driving record and zero claim history. Our cars are modest and not very […]

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The Importance Of Knowing How To Budget

How can you keep the money in your pocket, if you don’t know how it comes in and how it goes out? Granted, the most painful part about saving money is not to spend it. Deferring immediate gratification for the future takes some real discipline. Having a realistic financial goal in sight with a proper […]

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How I Bank: Online Banking

I actually started online banking back in 1998/1999 when I first read an article on online banking in BusinessWeek. The article was comparing two internet banks, and I chose to give NetBank a try. NetBank was one of the highest yielding banks in the nation at that time according to www.bankrate.com, and has been so […]

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Steps To Wealth: Saving and Networth

Saving = Income – Expense Networth = Asset – Liability Accumulating networth is a process by which one controls the expenses and trickle down the savings into growable assets, while reducing liability. Sounds simple? Yes, it’s easier said than done. But that’s how it always is. If you don’t get a lottery income, or don’t […]

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Why Is Your Home The Best Investment

Well, I should really qualify the title of this, by not buying the home in a bubble. Whether our current housing market is a bubble or not is debatable. Under normal circumstances however, buying a home is usually your best investment. And the reason is inflation. Historically, housing price tracks inflation fairly well. Since inflation […]

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Stages In Life: Retirement Planning

Most people when they finally get out of school and start their first job, are so happy with their financial independence and the first paycheck, that they splurge the entire paycheck, if not more.  Few people think so far ahead about the next stages in life, of getting married, having a family, and eventually retiring from work.  If one doesn’t […]

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All About Inflation

Modern money is paper money since the world came off from the gold standard in early 1900. One problem with paper money is that it is based upon confidence and trust, which can be fickle and fleeting sometimes. When the confidence is suddenly gone, then you have an Asian currency crisis or Mexican Peso crisis. […]

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