Comments for Guzzo the Contrarian http://guzzothecontrarian.com One Man's Quest to Conquer the Markets Thu, 17 Dec 2009 10:49:49 -0600 http://wordpress.org/?v=2.8.6 hourly 1 CommentsForGuzzoTheContrarianhttp://feedburner.google.com Comment on Obama the Oracle by Almost Millionaire http://guzzothecontrarian.com/2009/12/16/obama-the-oracle/comment-page-1/#comment-4643 Almost Millionaire Thu, 17 Dec 2009 10:49:49 +0000 http://guzzothecontrarian.com/?p=10829#comment-4643 What an amazing connection, it is truly a small world! Makes me wonder how closely I'm connect to either of those guys??? If you go back far enough, it seems like you are bound to hit! What an amazing connection, it is truly a small world! Makes me wonder how closely I’m connect to either of those guys??? If you go back far enough, it seems like you are bound to hit!


]]> Comment on Do You Have An Emergency Fund? by Guzzo http://guzzothecontrarian.com/2009/12/11/do-you-have-an-emergency-fund/comment-page-1/#comment-4633 Guzzo Sun, 13 Dec 2009 13:15:25 +0000 http://guzzothecontrarian.com/?p=10567#comment-4633 What do I mean by slippery slope? Here's an <a href="http://www.orlandosentinel.com/news/local/os-jobless-credit-ratings-20091212,0,5160193.story" rel="nofollow">unfortunate example</a>. What do I mean by slippery slope? Here’s an unfortunate example.


]]> Comment on Do You Have An Emergency Fund? by Guzzo http://guzzothecontrarian.com/2009/12/11/do-you-have-an-emergency-fund/comment-page-1/#comment-4632 Guzzo Sun, 13 Dec 2009 11:38:21 +0000 http://guzzothecontrarian.com/?p=10567#comment-4632 Wow, two years worth of living expenses. That's quite a savings accomplishment. We need more role models like you providing examples to others who say they can't save that much. You know your own situation better than anyone else, so paring down to one year of living expenses in your emergency fund probably was a smart thing to do. Mercedes sister, Christine Benz, discusses <a href="http://www.youtube.com/watch?v=wbXSn7uxql8" rel="nofollow">better uses of extra cash</a> when the dollar's falling and yields aren't keeping up with inflation. She does a good job of explaining what I mean to others who may be wondering why you took money out of your emergency fund. BTW, for those just getting started, it's always a good idea to view an emergency fund as a tool, more than an investment. It should be kept in the lowest risk vehicle possible, such as a savings account, CD, money-market fund, savings bond, treasury note, or similar. Preservation of value, liquidity, and ease of access trump keeping it in more risky income and growth vehicles such as stocks and corporate bonds that could potentially lose value. Wow, two years worth of living expenses. That’s quite a savings accomplishment. We need more role models like you providing examples to others who say they can’t save that much.

You know your own situation better than anyone else, so paring down to one year of living expenses in your emergency fund probably was a smart thing to do.

Mercedes sister, Christine Benz, discusses better uses of extra cash when the dollar’s falling and yields aren’t keeping up with inflation. She does a good job of explaining what I mean to others who may be wondering why you took money out of your emergency fund.

BTW, for those just getting started, it’s always a good idea to view an emergency fund as a tool, more than an investment.

It should be kept in the lowest risk vehicle possible, such as a savings account, CD, money-market fund, savings bond, treasury note, or similar. Preservation of value, liquidity, and ease of access trump keeping it in more risky income and growth vehicles such as stocks and corporate bonds that could potentially lose value.


]]> Comment on Do You Have An Emergency Fund? by Christine http://guzzothecontrarian.com/2009/12/11/do-you-have-an-emergency-fund/comment-page-1/#comment-4631 Christine Sat, 12 Dec 2009 21:29:24 +0000 http://guzzothecontrarian.com/?p=10567#comment-4631 I had 2 years of expenses in cash, but decided (while the dollar was falling daily) that was excessive. I've since brought it down to 1 year and invested most of the cash. I had 2 years of expenses in cash, but decided (while the dollar was falling daily) that was excessive. I’ve since brought it down to 1 year and invested most of the cash.


]]> Comment on Do You Have An Emergency Fund? by Guzzo http://guzzothecontrarian.com/2009/12/11/do-you-have-an-emergency-fund/comment-page-1/#comment-4627 Guzzo Fri, 11 Dec 2009 22:54:32 +0000 http://guzzothecontrarian.com/?p=10567#comment-4627 Some old school advice from <a href="http://gmj.gallup.com/content/124604/Economy-Real-Illusory.aspx" rel="nofollow">Dennis Jacobe, Ph.D.</a>, Gallup’s chief economist: <em>My advice is that Americans should go back to some of the old financial principles as they pursue both their personal and business lives. Consumers need to build a fortress balance sheet. Individuals should do everything they can to make sure they've got a manageable debt load. They should build up an emergency fund -- savings that can last them from three to six months in case something happens to the employment in their household or if something else unexpected occurs. If they buy a home, they should buy it with a significant down payment and a reasonable relationship between their monthly payments and their household income. If your company or organization makes investments, make sure you need them and can pay for them. You want to have a strong enough balance sheet that if economic forces outside of your company's control have a negative effect, your business can handle things financially and continue to survive. Maybe just make a new year's resolution that you'll end 2010 with less debt and more savings than you did in 2009.</em> Sounds like simple common sense to me. How did we ever digress from these principles in the first place? Some old school advice from Dennis Jacobe, Ph.D., Gallup’s chief economist:

My advice is that Americans should go back to some of the old financial principles as they pursue both their personal and business lives.

Consumers need to build a fortress balance sheet. Individuals should do everything they can to make sure they’ve got a manageable debt load. They should build up an emergency fund — savings that can last them from three to six months in case something happens to the employment in their household or if something else unexpected occurs. If they buy a home, they should buy it with a significant down payment and a reasonable relationship between their monthly payments and their household income.

If your company or organization makes investments, make sure you need them and can pay for them. You want to have a strong enough balance sheet that if economic forces outside of your company’s control have a negative effect, your business can handle things financially and continue to survive. Maybe just make a new year’s resolution that you’ll end 2010 with less debt and more savings than you did in 2009.

Sounds like simple common sense to me. How did we ever digress from these principles in the first place?


]]> Comment on Do You Have An Emergency Fund? by Moneymonk http://guzzothecontrarian.com/2009/12/11/do-you-have-an-emergency-fund/comment-page-1/#comment-4626 Moneymonk Fri, 11 Dec 2009 20:28:39 +0000 http://guzzothecontrarian.com/?p=10567#comment-4626 Nice video Nice video


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