Truth Test: Prudential TV Commercial on Retirement

Any financial planner will tell this is a nice amount of spending money, but as a retirement fund in the year 2054, it is no way close to being sufficient to retire on. . . . → Read More: Truth Test: Prudential TV Commercial on Retirement

Market Value vs. Inflationary Price Point

Fifteen years go by, the mortgage is paid down a little, the development is finished with homes like yours; some smaller but pretty much like yours. Your life has changed and you need to sell your home. You do some math and, based on the CPI inflation rate calculator over your 15 years, you think your house is worth $262,100. The bank shows the principal balance on your mortgage to be $125,628. . . . → Read More: Market Value vs. Inflationary Price Point

Can We Rely on the CPI Inflation Calculator?

When I was 16 years old and starting to drive my car, a gallon of regular gas where I lived was 24.9 cents. Given that, I can use the CPI Calculator to find out what I should be paying for a gallon of gas now (1965 then, 2014 now) – correct? NO! Why not? . . . → Read More: Can We Rely on the CPI Inflation Calculator?

Simple vs. Compound

You can now see that simple interest benefits the borrower and compound interest benefits the lender. . . . → Read More: Simple vs. Compound

Economic Indicator “PPI”

The basic definition of PPI is that it “is a weighted index of prices measured at the producer level, not the consumer level. Imports are not included.” . . . → Read More: Economic Indicator “PPI”

“P”onzi

Ever since the “swindler” was created, there have been Ponzi schemes, so named for Charles Ponzi. . . . → Read More: “P”onzi

What price should you pay for a Call Option?

Have you ever asked yourself how to find the best price to pay for a Call Option or do you just rely on your financial broker recommending the right option for you to buy?  If you have ever wondered how to calculate the best price for an option contract, and want to find out, you . . . → Read More: What price should you pay for a Call Option?

Investing in Options – Risk of the Put Option

So – you lost $400 on this investment while the stock value went up $200, this would have been your gain if you would have just purchased the stock outright. . . . → Read More: Investing in Options – Risk of the Put Option

Investing via the Put Option

The reason to buy a put option is based upon your expectation that the price of ABC stock will fall from its current value and it will fall soon. . . . → Read More: Investing via the Put Option

The Downside to the Call Option

I am very much in favor of having positive thoughts and words. Having stated that, one must acknowledge risk and be aware of how to manage it. So – are there risks to buying a call option? Absolutely. . . . → Read More: The Downside to the Call Option