20 Cents from January 2010

This is a list of 10 articles from January of 2010 that I thought you might find interesting. Go ahead and browse some of these websites if they are new to you and you’re certain to find a lot more great information. Enjoy!

1. Pop Economics had a great post asking What Investment Return Should You Plan For? I very much agree with the analysis here, as I think the conventional wisdom of 7% – 10% returns is way too optimistic, especially given the challenges we face in the near term with global debt levels where they are. Manage your risk, control what you can, and be careful what numbers you enter in those retirement calculators!
2. Byron Wien is a seasoned expert who is often tagged with the “legendary” moniker, so a lot of people listen to what he has to say. The fact that he’s often right helps a lot too. Each year, he puts out a list of “surprises” that are possible for the coming year, but often many of them end up coming to fruition. Hence, the “legendary” label. His list came out shortly after my post on 2010 What Ifs where I outlined my own ideas on the New Year, and highlighted the thoughts of some folks that are way smarter than I. Mr. Wien is definitely in the latter camp, so I would encourage you to read about his 10 Economic Surprises for 2010. You may also want to read his 10 Economic Surprises for 2009 as well to see how he did last year.
3. Larry MacDonald of Canadian Business asked whether or not it’s Time to Buy Inflation-Protected Bonds? He explains what they are and examines what you need to consider before making your investment decision.
4. Kathryn over at Million Dollar Journey was Rethinking the Latte Factor®, which refers to David Bach’s idea that saving a little money by giving up something like a latte a day adds up to a lot over a long period of time. I have often disagreed with Mr. Bach’s 10% return estimates, but I still think the main premise is valid. The Pop Economics article above references (and disagrees with) Mr. Bach as well. Kathryn suggests 6 ways to keep the latte (or another indulgence you really enjoy) by getting rid of other things that aren’t so important to you. Check it out!
5. The Digerati Life had a guest post from Austin Morgan of Foreigner’s Finances that urges everyone to Get a Financial Education in Your Twenties. That’s great advice by itself, but the information here is useful at any age. Better late than never!
6. Generation X Finance posted a thorough discussion on Three Types of Asset Allocation: Strategic, Tactical, and Core-Satellite. This ties into our brief discussion of asset allocation in the recent RRSP Basics series. Which type of asset allocation is right for you?
7. MoneyNing pondered The Brilliance of Carelessness. Sounds nice, doesn’t it? He doesn’t actually encourage us to be outright careless, but rather to choose action over endless deliberations in an effort to find perfection.
8. Darwin’s Finance asked Do People Who Speak Up Have Better Financial Outcomes in Life? Do you think extroverts have an advantage because the squeaky wheel gets the oil?
9. Cash Money Life provided some really good information on How to Organize Your Finances with a Financial Inventory. This has been on my to-do list for about 2 years now. I really need to do something about that.
10. Gail Vaz-Oxlade posed the trillion dollar question in a post that asked if we are Out of the Woods? She blows the sugar coating off the cow pies like only Gail can, questioning the wisdom of keeping interest rates low so that people, companies and governments can take on more debt. She sees another storm brewing and she thinks “you should plan like a pessimist so you can live like an optimist”. I agree with her on all counts. What do you think?