Personal Finance

Who We Are
The BlueCollarDollar was designed as a personal finance center where you will find the complicated world of investing and financial planning explained. We take a common sense approach to the money you earn, your investments (mutual funds, bonds, mortgages), retirement planning (IRAs, 401(k)s, etc.), insurance, mortgages, and debt. We want you to have a financially stable retirement, that is both comfortable and healthy.


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  • Investing
    Money in Motion

    Order your copy of Building Wealth in a Paycheck-to-Paycheck World by Paul Petillo. It is packed with safe, proven wealth-building strategies that cover all the major components of a balanced financial plan, including:

    • Straight talk on mutual funds, bonds, real estate, and annuities
    • Techniques for avoiding financial disasters
    • Tools to help readers track their debt and create a plan for staying out of it
    • Road maps to buying a home and saving for college and retirement

    Economics of Family

      Join us as we explore the cost of doing business as a family unit in this three part special to the BlueCollarDollar.

      Part One
      The cost of raising children is still climbing. Have you successfully budgeted for your future?

      Part Two
      Your job may be one the line as the economy continues to soften. Have you changed your outlook financially?

      Part Three
      As the folks in Washington return to deficit spending, are they setting a bad example?


    The 2004 Outlook
    It was a wonderful year in terms of gains, but even those gains are relative to (past)losses and don't really add up to anything worth congratulating ourselves about. We bought speculative stocks and were handsomely rewarded for our risk. But congratulations will still be the order of business as we drop the ball on the New Year, understanding that it is safe to say that everyone will remember the positives of '03 as having defeated and overcome even triumphing over all the negatives.

    In blurring those lines, which are firmly delineated as good news/bad news, we have in a sense decided that we will believe the best story while discounting the bad news sooner. That will make it easier to be forgotten as the clocks turn to '04.

    Part two of our outlook towards the coming year suggests that this economy cannot continue to adopt the Wal-Mart thinking as a business model.

    Thanks for reading the BlueCollarDollar,
    Paul Petillo,
    Editor


    Another Look at Retirement
    I have to admit that I felt a little sheepish at taking a shot at what a fellow columnists wrote in a nationally recognized magazine published by a national recognized group. For awhile I even debated publishing it. But the advice he gave to that wide readership deserves rebuttal.

    Another Look at Risk
    Larry Swedroe, frequent contributor to the site has left us with some very lofty material for us to delve into concerning risk.
    "Since we live in a world without crystal balls that allow us to clearly see the future, prudent investing is all about the management of risk and expected returns. A problem that both investors and investment advisors face is defining what exactly is risk."
    It is all in Seeing
    Dr Eleanor Gibson recently passed away. This remarkable woman was a pioneer in the study of perception. One of her most famous studies concerned infants and toddlers and the "visual cliff". Children in this experiment were coaxed to do something that acted against what they actually saw. She was once quoted as saying: "We perceive to learn, as well as learn to perceive."
    This is the last of three part series concerning your place in the investment world as seen from letters written by those you trust. This one comes from the a newly elected governor who is forced to explain the whys and the whatfors of the current economic state.
    Previous letters, one from a mutual fund manager and the author of the tax proposal also are matter of perception.

    Why Rent? Buy A Home Today!                         

    Re-decorating
    We are a nation of homeowners with roughly 67% of the population nestled into their own piece of the American dream. Of that figure, over 25 million people have more than remodeling on their minds, they actually have done something about it. The current trend towards changing the old nest around was enabled by the low mortgage rates of recent years. What happens when the Jones' are on television? How can I possibly keep up with the steady flow of notions that my wife gets from watching HGTV?

    Shiny Things...Another Look at Gold
    Gold has become even more alluring since I warned you off of thinking about it several months ago. During that time, I suggested that the markets would see some recovery and that recovery, coupled with a technique used by gold producers to inflate the price of the metal ending soon, would bring the price down to its past 22 year trading range.
    The Lonely Investor

    Professor David Riesman wrote a book in 1950 that became the sociological handbook for direction. This scholarly work looked at population in relation to the way its people acted given certain technological advances. Borrowing from his book, we ask, what kind of investor are you?
    Balance Matters
    The days of double digit expectations are over. Now the word is balance.
    ReAllowance
    If you are using a broker to buy mutual funds, are they interested in your return, or the reallowanceoffered to their firm?
    Parental Guilt
    They are getting older and it might be time to think about them as part of your future plans. Could the pressure of aging parents have an effect on your financial plans?
    Focus on Risk
    It is important to remember that volatility tells us nothing about risk, amounting to a statistic that is more probability than fact. The real risk, according to Robert Jeffery is "in holding a portfolio that might not provide its owner...with the cash he requires to make essential outlays."
    Golden Opportunity?
    Along with the Dow futures, the Nasdaq futures, and the S&P futures, all considered market indicators, suddenly gold was being tracked as it climbed north of the $300 an ounce mark, priced as bullion.
    When to Sell
    Funds falter, markets stumble, and things change. You change.Do you know when to sell your mutual fund?
    If Equities Stumble...
    The National Association of Real Estate Trusts reported that mortgage REITs returned 77.3% total return in 2001. So what about 2002? Many mutual fund managers have conservatively estimated that the sector will return in the 7-10% range for the year. But that may be just a little too conservative.
    So what is a REIT?
    Readers ask about Bonds
    The bond market boom might be over, but readers are still interested in this mystifying investment.
    The Thirty Year Note
    The 30 Year Treasury Note has been cancelled. Does this mean that the one last bastion of economic stability, the housing market, might miss the recession completely?
    Sage Advice
    The investment community has trotted out some of their old sages to help with the lack of optimism, and read the color right back into the current economy. But will a fresh coat of paint actually help matters, or merely mask what couldn't be fixed?
    Hiring Out
    This is certainly the perfect environment to ramp up the efforts at convincing you that you can not go it alone. What happens when the thought of educating yourself becomes something you don't want to do? You Hire Out
    A New Post Bubble Fund

    Success in mutual fund investing has had different definitions in recent years. What do you do now?
    Star Spangled Investing
    Thinking about a patriotic investment?



    Leaking Hot Air...REITs Undone
    When most investors think of REITs and real estate, they think locally in terms of their own homes. But the companies involved in real estate trusts are more likely to have invested in commercial properties. When business is hurting, it is the properties that take the hit.

    Investing
    Mutual Funds


      Head Smart Investing
      Are you asking yourself some pointed questions about your investment style? We are asking for you.
    Investing
    Your Home


      Spending the House

      An increasing number of Americans are using their homes and the equity in them recklessly. What effect will this increased debt have on an economic downturn? The BlueCollarDollar examines the effects of spending the house.


    Finance

    Mutual Funds We have designed a series of portfolios for every stage of your life. Early Bird Portfolio of Funds (aggressive, with a high tolerance for risk), a Chaser Portfolio of Funds (the late starter who needs to catch up to reach the retirement goal) , and a Relaxer Portfolio of Funds (a portfolio for someone who can see the light at the end of the tunnel and what's a little more protection).

    Survey Take our 401k survey All responses and any other information gathered here at the BlueCollarDollar is kept completely confidential. We are just a curious bunch.

    Insurance
    It is the kind of peace of mind that millions of Americans live without and in doing so, chance the loss of everything they own. A health insurance primer.

    Mortgages We take you on a step by step walk through the maze of home buying. It is the single biggest purchase you will ever make. And you should feel comfortable about it. First Steps

    Calculators What would a financial site be without some fun toys to play with? These calculators are here for your use, although we find the outcome of the numbers generally depressing. Use them for fun but follow your debt reduction plan first.