Posts Tagged ‘compound interest’

The Allowance Experiment, Completed!

The Allowance Experiment, Completed!

By The Banker | Blog Posts, Personal Finance

Last night completed Day 30 of the “Allowance Experiment,” in which I offered my eldest daughter a daily payment calculated as 10% of her allowance savings, compounding daily.  On day 1, she began with an initial grub stake of $1.  She received $0.10 on day 2 (10% of $1) and $0.11 on day 3 (10% [&hellip

The Allowance Experiment Gets Better

The Allowance Experiment Gets Better

By The Banker | Blog Posts, Personal Finance

More Happy Unintended Consequences More exciting things (to me) keep unfolding from the ongoing financial education of my 8 year-old. A little while back I took all of my daughter’s tooth fairy savings and invested it in Kellogg stock, a wonderful, awful, idea of mine to begin teaching her about investing. Following that, my daughter [&hellip

Book Review: The Only Investment Guide You'll EVER Need

Book Review: The Only Investment Guide You’ll EVER Need

By The Banker | Book Reviews, Personal Finance

It pains me to write this[1], but Andrew Tobias’ hyperbolically titled[2] The Only Investment Guide You’ll EVER Need actually lives up to the name. Tobias delivers solid personal financial advice, but in a playful tone. He enlivens an entire chapter on saving money – the world’s dreariest subject – with anecdotes about his own fetishistic [&hellip

Book Review: Master Math; Business and Personal Finance Math

Book Review: Master Math; Business and Personal Finance Math

By The Banker | Book Reviews, Personal Finance

I’m finishing up teaching an undergraduate course on Personal Finance this month, for which I find the assigned textbook totally useless, so I am on a quest to come up with a useful book to recommend for students as well as Bankers Anonymous readers. What’s useful The most impressive strength of Master Math: Business and [&hellip

Upper Income People Can't Be Bothered With The IRA

Upper Income People Can’t Be Bothered With The IRA

By The Banker | Blog Posts, Personal Finance, Taxes

Please see my earlier post on The Humble IRA.   Does the humble and homely Individual Retirement Arrangement (IRA) matter to well-paid people? I remember being shocked in the late 1990s when my mentor Jim on the bond trading floor at Goldman declared “I don’t bother with IRAs because nobody’s getting rich investing through an [&hellip