Wednesday Links – January 27, 2016


Like exercise, investing requires persistence and patience Just like working out, investing requires the same kind of long-term view in order to achieve financial goals. (Christian Science Monitor)

The most common investing mistakes When it comes to investing in the stock market, people make the same mistake over and over. They react emotionally to the dips the market makes on a regular basis. Financial advisers say that when you invest in stocks, the best strategy is to think long term—five or 10 or more years down the road. Don’t try to predict what the market will look like in the next few months. Historically, the market has always bounced back over the long haul. So trust in your instincts and allow your assets to grow. (

The cost of investing continues to decline as brokerage houses and ETF funds continue to lower the costs of their funds. In November, asset manager BlackRock Inc. said it would slash by more than 50% the annual expenses charged to investors in an exchange-traded fund that aims to mimic the performance of the entire U.S. stock market.

By the end of the day, executives at rival Charles Schwab Corp.had matched the price cut. In December, Vanguard Group announced fee cuts of as much as 25% at dozens of its funds. The cost of investing is tumbling toward zero for some basic portfolios of stocks and bonds as firms duel for customers.

The slide has been under way for years but is accelerating as the industry’s biggest companies target increasingly cost-obsessed investors. More than 100 mutual funds and exchange-traded funds now cost $10 or less per $10,000 invested, up from 40 in 2010, according to Morningstar Inc. (Marketwatch)

The smartest way to invest during a stock market correction The best time to invest in stocks is also the hardest time to invest in stocks: during a stock market correction. If you let fear dictate your decisions, you’ll look back in the future and wish you hadn’t. But if you approach the task calmly and rationally, you’ll benefit handsomely. (Motley Fool)


Key numbers for 2016 retirement planning (Forbes)

A new DIY approach to retirement planning With the decline of traditional pensions, many older workers and retirees face a “do it yourself” retirement: You’re on your own to figure out how to make your retirement savings last for the rest of your life. With retirements that can extend 20 to 30 years or more, this is indeed a daunting challenge for those who are fortunate enough to accumulate significant savings by the time they retire.

To address this challenge, different thinking and new language is needed to transition from a mindset concerned with accumulating assets for retirement to a mindset concerned with generating income in retirement. (Forbes)

59 1/2 – A key birthday for retirees The age you finally can get at those dollars you have been stashing away for years in your retirement plans without paying a 10% penalty. Congress imposed a penalty on early withdrawals from retirement plans to discourage workers from taking money out of their retirement plans. But in reality the penalty has not discouraged workers from taking their money. (Boston CBS Affiliate)

Your Money

the index cardThe Index Card: Why Personal Finance Doesn’t Have to Be Complicated A while back, we wrote about the inspiration for this book. When University of Chicago professor Harold Pollack interviewed Helaine Olen, an award-winning financial journalist and the author of the bestselling Pound Foolish, he made an off­hand suggestion: everything you need to know about managing your money could fit on an index card. To prove his point, he grabbed a 4″ x 6″ card, scribbled down a list of rules, and posted a picture of the card online. The post went viral.

Real Estate

Mortgage applications up 8.8% as buyers look to lower rates. Defying expectations for the start of 2016, mortgage rates spiraled down further last week, spurring more volume in the mortgage market. Total applications increased 8.8 percent on a seasonally adjusted basis last week from the previous week, according to the Mortgage Bankers Association. (

Can the mortgage process become 100% digital?! The two biggest misconceptions of digital mortgages are that you can get a mortgage with the push of a button, and that you won’t have to provide as much documentation. Technology advances have reinvented mobile phones, music, TV, and many other industries in the past decade. And now technology is finally beginning to overhaul the mortgage process. But is it really possible to have a 100% digital mortgage?

How to refinance to eliminate PMI  FHA loan policy regarding mortgage insurance premiums have changed several times over the past few years. Depending on when you got your loan, you either were required to pay MIP for the entire length of the loan (with no possibility of cancellation, no matter how much equity you built) or until you reached a certain level of equity (22 percent) combined with paying on the loan for a fixed period of time, in your case five years.

How to choose the best mortgage Buying a home is probably the largest purchase you’ll make in your lifetime. And choosing the right mortgage is one of the most important decisions you’ll make in the homebuying process. With so many different options out there, it can be hard to find an affordable home loan that meets your financial goals.


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