Continue reading Hamilton's Bank of New York Mellon has endured

Hamilton's Bank of New York Mellon has endured originally appeared on BloggingStocks on Mon, 06 Apr 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Housing sector slump seen decreasing some Baby Boomers' nest eggs

Housing sector slump seen decreasing some Baby Boomers' nest eggs originally appeared on BloggingStocks on Thu, 26 Jun 2008 12:44:00 EST. Please see our terms for use of feeds.

A neighbor in my middle-class neighborhood of $200-$400,000 homes recently bought two adjacent houses and bridged them to create a 10,000-foot, $1+ million mansion. I thought he was nuts, until I read the New York Times article that suggests this is the best price point in today's market.

No one quibbles that selling a modestly-priced home in virtually any American market today is an exercise in despair. According to a report on NPR yesterday, the country is sitting on a one and a half year supply of new homes. And the numbers seem to be getting worse for some new home builders (see Eric Buscemi's post on the cancellation numbers at Ryland).

The ultra-expensive spreads, such as the $165 million Hearst estate Peter Cohan blogged about yesterday, are also struggling on the sales block. The 'tweeners, though, such as gentrified Boston homes, generous Manhattan flats, or Gold Coast condos, seem to be bucking the trend.

So maybe my neighbor has the right idea. Perhaps the multitude of house-flipping shows on cable television will be replaced with home mergers, turning two modest homes into one gargantuan (and sellable) property. If our society's income is stratifying, the new wealthy will need their estates, and the rest of us, our wattle huts.

Million-dollar homes buck housing slump originally appeared on BloggingStocks on Wed, 11 Jul 2007 12:00:00 EST. Please see our terms for use of feeds.

In the musical Fiddler on the Roof, Reb Tevye laments in the opening line of "If I Were a Rich Man" that "It's no shame to be poor. But it's no great honor either!"

The image of the poor peasant is so powerful that when people come into even a small windfall, they start to think of Tevye, which is a pity because he's offering bad financial advice. In fact, the last thing that anyone should do if they come into extra money is to break out into song.

Of course, the odds of Tevye or anyone else striking it rich are tiny but many people do get windfalls from an inheritance that's neither as generous nor as wacky as those outlined in this story. More commonly, people get extra money from investments including stocks and real estate.

Though everyone's situation is different, there are a couple of principles that people with extra cash on their hands should consider.

Rule number one is not to act like you've won the lottery. You shouldn't act that way even if you hit the latest Power Ball jackpot. That saying about a fool and his money being soon parted is true. Remember spending yourself into huge amounts of debt is easy. Just ask Michael Jackson.

The best investment for most people is themselves. Pay off any high-interest credit card debt if you have it. Get additional training or education if you need it. If there's still money after those expenses, then consult with either a tax or financial planning professional about your situation. If possible, do this before you get the money so you can plan ahead.

Continue reading Your inheritance: Don't spend it all in one place

Your inheritance: Don't spend it all in one place originally appeared on BloggingStocks on Thu, 05 Jul 2007 08:04:00 EST. Please see our terms for use of feeds.

Continue reading Mansions of billionaires: Where too big means barely adequate

Mansions of billionaires: Where too big means barely adequate originally appeared on BloggingStocks on Wed, 27 Jun 2007 13:20:00 EST. Please see our terms for use of feeds.

While sadly observing the craziness that has surrounded the death of the late, legendary soul singer, James Brown, it seems timely to post a friendly and necessary reminder about the importance of having wills and other financial and legal work in order.

The 73 year old musician passed away on December 25th, and has yet to be buried due to a legal family feud in which his companion, Tomi Rae Hynie, and their 5 year old son, were not only locked out of they home they shared on the morning of the singer's death, but also apparently left out of the will completely. Now, a battle between his six children named in the will, his estate's trust, and Ms. Hynie's attorney has become fodder for an insatiable media circus.

I cannot imagine sharing a home and a child with a man and coming home and finding myself locked out of my very home, grief-stricken and now engulfed in an ugly lawsuit. I also read about how the family of 88-year-old evangelist Billy Graham is already at war over where his final resting place will be. How terribly tragic is that?

My advice is to get your financial affairs in order now. You can't fix nor alter them once your dead, unfortunately so the time is now. Not only do they need be in order, they also need to be consistently updated to reflect divorces, births, etc. Findlaw has a pretty good estate planning 101 overview, which should at least you lead you in the right direction.

In reading some of James Brown's more popular song titles; like Get On The Good Foot, I Don'T Want Nobody To Give Me Anything, Christmas In Heaven, and Sweet Little Baby Boy, the irony of it all is quite upsetting. Don't allow this to happen to you or yours.

Get on the good foot with your finances (or become a player in a financial Family Feud) originally appeared on BloggingStocks on Fri, 12 Jan 2007 14:25:00 EST. Please see our terms for use of feeds.