Paul Puckett | Enemy of Debt: Where Behavior Meets Reality

Hidden Expenses That Impact Retirement

Written by Paul Puckett on February 14, 2012 · 3 Comments

Anthem Healthcare sent me an advertisement for their health insurance and priced it on a daily basis. “Now just $1.58 per day!” Naturally, that rate didn’t apply to me but to a hypothetical 35 year old “healthy” male. Surely their comprehensive database could have sent the quote for me as a 50 year old. In any case, you don’t pay insurance daily. That $1.58 day rate is paid at $47.40 per month or almost $600 per year, which for health insurance is pretty inexpensive. I called and my daily rate would be $5.04 per day or $151 per month or [...] Read more »

Tags: Behavior, debt, Debt Elimination, hidden money, money, personal finance, rertirement

The Danger of Marketing

Written by Paul Puckett on January 31, 2012 · Leave a Comment

According to the American Marketing Association, the definition of marketing is “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” Basically, the purpose of marketing is to let you know about the products and services companies offer that have value for you. The first problem with marketing is that the catch phrases are often misleading and may cause you to buy inappropriate and expensive products. The second problem is the marketing message may blind you to the reality that no product is, in itself, [...] Read more »

Tags: Investing, marketing, personal finance, Risk, safety

How Do You Choose to Handle Change?

Written by Paul Puckett on January 10, 2012 · 3 Comments

Anyone who knows me, also knows how often I can be found at Starbucks. Several locations fix an Iced Quad-Shot Espresso when they see me pull into the parking lot. That is, after all, my preferred drink and has been for several years now. Originally, my drink was a Grande nonfat, with whip, Mocha. After several years, I chose a Grande Iced Coffee. Then, my doctor suggested espresso since it has less caffeine and much less acid than brewed coffee. (I know it doesn’t sound right, but see references below). Even though it has a stronger flavor, espresso is lower [...] Read more »

Tags: Behavior, eating out, Investing, personal finance, Priorities

Happy New Year!

Written by Paul Puckett on January 3, 2012 · Leave a Comment

Here are a few thoughts to consider as we begin 2012. The majority of the money and investing related news for the past week are either focused on the past or the future. Every media outlet will have reviews of 2011 and predictions for 2012. This news trend will continue for the rest of January. While it is helpful to look back at the past, don’t spend too much of your time looking in the rear view mirror. As you know, you may learn from the past but you cannot change it. Congratulate yourself for your successes and good decisions. [...] Read more »

Tags: 2012, Investing, personal finance

Where Do You Focus When You Invest?

Written by Paul Puckett on December 13, 2011 · Leave a Comment

Let’s have a little fun and begin with an exercise. Begin by taking a break and go sit anywhere outside. Once your comfortable, take your hand and hold it about a foot in front of your eyes. It’s probably been a while since you really looked at your hands so focus for at least a minute on every detail. Study your nails or the lines in your skin for at least a minute. This next step may be challenging but it is critical that you keep your focus on your hand without allowing your eyes to refocus. Now while focusing [...] Read more »

Tags: focus, Investing, investing tips, psychology of investing

Managing your Investments is Like Baking a Souffle

Written by Paul Puckett on December 6, 2011 · 3 Comments

I love to cook! A few years ago, I decided to try to bake the often dreaded souffle. NPR had a feature on The Science of the Perfect Souffle that made me crave the delicate and light texture of the aerated eggs for a nice brunch. There are a few challenges if you want a perfect souffle and NPR’s Joe Palca turned to Jeffrey Buben, owner and head chef at Vidalia, a restaurant in Washington, D.C, for the perfect souffle. The really neat thing about souffles is they can be a main dish when the eggs are mixed with herbs [...] Read more »

Tags: Baking, Behavior, Investing, Investment Management, psychology, Souffle

Investing Tip: Don’t Be Like an “Overly Emotional Teenaged Girl”

Written by Paul Puckett on November 29, 2011 · 1 Comment

CNNMoney features an excellent column by Paul R. La Monica today contrasting the “overly emotional teenaged girl with an unrequited crush. OMG! My life is over!” stock market investors with the seemingly apathetic and “too-cool-for-school kids that don’t get bothered by anything” bond market investors. I encourage you to read the column as Paul, (who has a really great first name), hits the nail firmly on the head. You can find it here: The United States of Apathy. Investing in the stock market is a long term process. In any given year the market may rise or fall significantly and, [...] Read more »

Tags: apathy, Investing, investing tip, long term

The Dangers of Debt from a Financial Pro

Written by Paul Puckett on November 15, 2011 · 1 Comment

November is No Restaurant Month and if you embrace the concept fully it’s a month to avoid unnecessary expenses. I recently read an article in the New York Times in the “Your Money” section. That issue profiled one of my idols in the industry, Carl Richards; financial planner, blogger, and napkin illustrator. Carl has been in the industry since 1996 and has provided easy to understand illustrations exploring the relationship between people and their money. He refers to this as the “behavior gap”. In short, Carl is an experienced and knowledgeable financial professional. But, as you’ll see in the New [...] Read more »

Tags: Behavior, dangers of debt, debt, personal finance

What Will You Do With Your “No Restaurants in November” Savings?

Written by Paul Puckett on November 2, 2011 · 4 Comments

If you’ve accepted Brad’s challenge for No Restaurants in November by the end of the month will have saved up a sum of money. Last year, Brad saved $524.25 during the 2010 version of No Restaurant Month. Your savings will depend on how much you make and then spend at restaurants. When November ends, what should you do with the money you saved? Pay down your debt! First, if you have debt, use your November savings to reduce your outstanding debts, particularly the higher interest rate credit cards. You might think about what those balances represent and, if it’s financing [...] Read more »

Tags: budget, dining, eating out, Investing, no restaurants in november, pay off debt, savings

2 Sure-Fire Ways to Lose Your Money…Guaranteed

Written by Paul Puckett on October 18, 2011 · Leave a Comment

A few years ago, I bought my daughters a fun, entertaining, and great inspirational book. The title is, How to Be Totally Miserable: A Self-Hinder Book by John Bytheway (Clearly a pen name). I highly recommend it! Inspired by this book, I am writing a short book focused on money. Thousands, maybe hundreds of thousands of books have been written on making money. Few, if any, help you find fun, innovative, creative and entertaining ways to lose money. Soon, at least one book will address this very needed niche for those who have grown tired of the constant battle to [...] Read more »

Tags: book, personal finance, ways to lose money

Should you “Occupy Wall Street”?

Written by Paul Puckett on October 11, 2011 · 14 Comments

You may be aware of a growing social protest movement that began on Wall Street a few weeks ago. According to their website: “Occupy Wall Street is leaderless resistance movement with people of many colors, genders and political persuasions. The one thing we all have in common is that We Are The 99% that will no longer tolerate the greed and corruption of the 1%. We are using the revolutionary Arab Spring tactic to achieve our ends and encourage the use of nonviolence to maximize the safety of all participants.” And now this protest is metastasizing and spreading to 25 [...] Read more »

Tags: accountability, Change, Economy, Investing, Personal Responsibility, Priorities

With a Falling Market Should I Bail on my Investments?

Written by Paul Puckett on October 4, 2011 · 6 Comments

The markets fell, for the most part, during the third quarter continuing the challenge for many people to remain invested. Some investors moved out of the market already and will eventually have to decide when to invest again. That is the challenge for short-term investors and for those who attempt to time the market. The advantage of long term investing is the stress and strain of rapidly fluctuating markets is something you can ignore. Here are a few important questions you should consider. First, do you have adequate savings and emergency funds? (At least 6 months of your net take [...] Read more »

Tags: emergency fund, falling markets, Investing, markets, Money Management, paying off debt, retirement plan

Three Keys to Financial Fitness

Written by Paul Puckett on September 27, 2011 · 3 Comments

I was planning on writing about a new survey from Prudential Retirement Services today. It is a very interesting survey from 2006-2011 of primary or joint financial decision makers who are between 45-75, have a household income of at least $100,000 ($50,000 if already retired), household investable assets of at least $100,000, and retirement savings of at least $100,000. Many who fall in this “retirement red zone” have serious concerns about their ability to maintain lifestyle in retirement. For those of you who would like to read the study, here’s a link to the Prudential website: http://news.prudential.com/images/20026/2011ChangingAttitudesAboutRetIncome.pdf It is worth [...] Read more »

Tags: Budgeting, Debt Elimination, Investing, Retirement Planning

Investing — The Whole Return

Written by Paul Puckett on September 20, 2011 · Leave a Comment

Losing money can really make you angry, but, eventually, you can make up the losses. But when time is lost, you will never get it back. The factor of time in investment return calculations is limited to the time period of the investment, e.g. One Year, Year To Date, Trailing Three Years, Calendar Year, etc. Return calculations are objective and purely mathematical. The value of your time is left out of the calculation of investment return. What about the time you spend as an investor? What is it worth? Isnʼt that part of your whole return and shouldnʼt you include [...] Read more »

Tags: Investing, investment return calculations, money, Money Management, personal finance, the whole return, time management