Wednesday links: Investing predictions, best 529 plans, unexpected mortgage price hikes

Investing predictions

I am a big proponent of passive investing for most people. If you don’t have the skills, the time, the inclination to closely monitor your investments, simply by an index fund of three and rebalance occasionally. An article in Bloomberg today suggests that the next decade may be tough on all investors. They expect returns may be below 5% annually. I can’t say I go in much for future projections. Projections and forecasts are wrong too often. Even if predictions of poor returns is true, what alternatives do you have? Are you going to put your money in your mattress? In CDs paying a percent or two? [… read more]

Saving for your kids education

Saving for your own retirement should be your primary goal. You may also want to save for your children’s education. Maybe your parents want to contribute to their grandchildren’s education. Is a degree a worthwhile investment? A friend told me that he told his son that he will pay for his kid’s degree… any degree! As long as the degree title includes the word ‘engineering.’ I am a big believer in STEM degrees, finance, and accounting degrees. Others? Well, you can probably learn enough on your own. Morningstar has an article discussing the best 529 plans. [… read more]

Your mortgage may cost more than you expected

Buying a home is something that everyone should strive for. Like stocks, buy early and hold for a long time. Eventually, the value of your asset will likely increase, in some parts of the country, they may increase quite dramatically. (Think SF, NY, and LA.) When buying a house, most of us need a mortgage. The cost of your mortgage may be higher than you expected. Here’s a few reasons why. [… read more]

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