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

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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

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