Archive for the ‘Blog Posts’ Category

On Entrepreneurship Part I - Fixed Income vs. Equity or Salary vs. Ownership

On Entrepreneurship Part I – Fixed Income vs. Equity or Salary vs. Ownership

By The Banker | Blog Posts, Personal Finance

A salary is Fixed Income Earning a salary, working for someone else, is earning ‘fixed income,’ which means you hope it comes close to covering your lifestyle expenses.  Like all fixed income, however, it will be limited.  In the case of your salary, the limitation of your fixed income comes not from prevailing interest rates, [&hellip

On Cars Part II - Acceptable Price of a Car

On Cars Part II – Acceptable Price of a Car

By The Banker | Blog Posts

Please see my earlier post: Cars I – On Not Getting Fleeced Here’s several ideas that may help you pay the right amount for your car. 1.       Cars are not investments.  Unlike houses, cars only lose value over time.[1]  Cars are big consumer goods that depreciate quickly in value. 2.       As a result, all money [&hellip

On Car Buying, Part I - Not Getting Fleeced

On Car Buying, Part I – Not Getting Fleeced

By The Banker | Blog Posts, Personal Finance

I’ve been thinking lately about what we buy when we buy a car, and how to make the best personal financial choices when car buying. Can you buy your personality at the car dealership? From birth, until now, you have been taught that your car is your personality. Are you Ford Tough?  GM Patriotic?  Audi [&hellip

On Insurance, Part III - Life Insurance Calculations

On Insurance, Part III – Life Insurance Calculations

By The Banker | Blog Posts, How Not To Invest, Insurance, Personal Finance

I previously argued that insurance is useful for risk transfer, but less attractive as an investment.  I also think that under certain conditions – such as responsibility for minor children or limited savings, you need life insurance.  I thought a quick post using compound interest calculations could help illustrate why life insurance can be an [&hellip

On Insurance, Part II - The Good, The Optional, & The Bad

On Insurance, Part II – The Good, The Optional, & The Bad

By The Banker | Blog Posts, Insurance, Personal Finance

Please see my previous post, on Insurance as Risk Transfer Only Good uses of insurance Car insurance – mandatory and necessary, appropriately transfers risk of sudden damage to car or bodily health away from you to a company that can spread that risk around. Homeowners and renters insurance – similarly transfers risk of catastrophic damage [&hellip