Quarterly Investment and Net Worth Review

April 6, 2009 by  
Filed under Financial Planning, Investing

net_worthThe first quarter of 2009 has ended. Thus, it’s time to formally re-visit a couple of performance metrics in the Mr. and Mrs. ToughMoneyLove financial empire. (OK – our financial realm is more like a hamlet than an empire but it’s still important to us.) Read more


Good Debt, Bad Debt and Flawed Investment Return Data

August 18, 2008 by  
Filed under Debt and Credit, Investing

I can’t tell you how often I hear or read someone argue that they have “good debt.”   This “good debt”  argument is made to rationalize having a car loan, a HELOC or second mortgage balance, and even credit card debt.  The argument goes something like this:  “The money I have borrowed is being paid back at 6% interest.  Instead of paying it back all at once, I have invested the money in the stock market which historically has an average annual rate of return of 12%.  So I come out way ahead.”  (Yes, 12% is the number I read most often.) Read more