Smart401k Blog

My son is approaching the end of his “terrible twos.”  He’s actually been quite good during this timeframe; especially after he learned to talk (it helped end some frustration on his part).  Every once in a while, when tempers flare or he pushes the edges of acceptable behavior, we give him a time-out.  It’s amazing the transformation that occurs; by the end of two or three minutes, he is back to his usual good-natured self.  (more…)

In the headlines

A look at some of the market movers over the past week:

• Amidst a deepening recession and financial turmoil, Barack Obama was sworn in as the 44th President of the United States
• Chrysler and Fiat entered into an agreement which gave Fiat a 35% stake in the troubled US automaker
• The New York Times received a $250 million loan from Mexican billionaire Carlos Slim Helu
• Mining giant BHP Billiton announced 6,000 job cuts and the closure of an Australian nickel mine

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Now that 2008 has come to a close you should be expecting to receive a few things in regards to your 401(k) or other qualified plan.  The first thing you should watch for is your year-end statement.   At the very least, every 401(k) plan is required to send out one paper statement, and this will likely be your year-end statement.  These statements are usually generated by the middle of the month so you should except to receive yours by the end of January.  (This is also a great time to update all contact information and verify your address with your 401(k) provider).  (more…)

In the headlines

A look at some of the market movers over the past week:

• President Bush requested the second $350 billion of TARP funds
• German officials increased the country’s stimulus spending by another $66 billion
• Spain has opened its own probe into the Madoff scandal
• Morgan Stanley and Citigroup announced a joint venture combining the two companies’ brokerage units

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In my first post on the economic crisis, I reviewed the players involved and the effect lax lending standards had on the real estate market.  In my second post on the crisis, I introduced the idea of a mortgage backed security and talked about their effect on the balance sheets of individuals and corporations.

In this post, I want to talk about credit derivatives and how they, in my opinion, played a very large part in exacerbating the crisis. (more…)

In the headlines

A look at some of the market movers over the past week:

• US auto sales provided plenty to be disappointed about
• Toyota announced that it will suspend production for 11 days in February and March
• The US Federal Reserve began purchasing mortgage backed securities
• Indian outsourcing giant Satyam crumbled after management admitted to fraud

(more…)

Last time, I discussed my plan for teaching my son about money through age 10.  This post will discuss my thoughts about how to approach the most challenging group – teenagers. (more…)

In the headlines

A look at some of the market movers over the past week:

• Kuwait pulled back on its planned joint venture with Dow Chemical
• Most retailers were left out in the cold this holiday season
• The Treasury gave $6 billion to GMAC in an effort to keep the auto lending business alive
• Billionaire Kirk Kerkorian sold off the last of his once-large Ford stake

(more…)