Don’t Go To Business School (2)

Daily FinanceBy creating a monthly budget and sticking to a weekly spending plan, college students can make sure to fulfill all of their financial obligations and still have fun each week. One might cost a simple 0.25 percent on the dollar, while another will claim the potential for far greater returns but charge 1 percent. This makes the traditional advice for short-term goals – keep your savings liquid and protected – a test in patience and restraint. Investors are more likely to panic during a market dip and sell out when assets earmarked for a short-term goal are bundled together with longer-term assets.

Indexes finished off their highs of the session after Federal Reserve Chair Janet Yellen said she expected the Fed to raise interest rates at some point this year, while expressing concern that the U.S. labor market remained weak. Eurozone finance ministers will meet Saturday to decide on a third bailout for Greece, which made substantial concessions in its latest proposal to lenders, including tax hikes, in hopes of receiving $59 billion to help it cover debts until 2018. The reason rates are so important for the U.S. housing market is that most buyers have to get mortgages in order to afford to buy a home.

New potential risks have emerged since the Fed’s June 16-17 meeting, including the on-going Greek debt crisis and a sharp plunge in China’s stock market over the past month. Dealerships have huge overhead expenses, which means they have prices higher than what you find on the private market. Philip Martin, head of market research at Chicago-based Waterton Associates, a real estate investment firm, said that in 2000, 80 to 85 percent of seniors (defined as 55 to 74) owned a home.

Yet it is also fact that the last decade has seen a roller coaster homeownership market in which many thousands lost big money – sometimes in foreclosure, sometimes in short sales – often because the owner had to sell at a loss just to unload a home that was no longer wanted. It’s true that money can’t buy many things – but some things can buy money, and wealthy people practice them daily.

One trigger is that at least in some home markets – San Francisco, Los Angeles, Brooklyn, to name a few – there’s a sense that the top of the housing market is near so now is the time to sell. But the wealthy track and pour much more money by percentage into pensions and insurance, whether actively or passively, on a daily basis. So while the rest of us hit the vending machine at work, they dedicate a daily portion of their salary to becoming millionaires.Daily Finance

Daily Finance