Some good reads for the weekend.
I read two great articles from Allan Roth this week. One is in the lists below, while the second (which is actually a year old) I am calling out as my post of the week.
In Skimp or Splurge – Millionaire’s Car, Roth highlights the awesome wealth-destroying capabilities of an expensive automobile:
On average, each of the two Lexus SUVs cost $15,060 annually, while the Ford clocks in at $10,000 less. This leaves the [Ford-owning] Thriftys with $20,000 annually to invest.
If the investments return seven percent annually, the Thriftys will have built up a $1.9 million portfolio after 30 years. Of course to get that rate, you’ve got to keep expenses and emotions out of the equation and be a rational investor.
I’ve mentioned before the big wins – from a frugality standpoint – of avoiding the three Cs: Cars, cigarettes, and children.
It’s especially true in your 20s. I once worked with a young colleague who ran a top-end car and smoked like a Cold War spy. He was always in debt. Luckily he smelt like a chimney and preferred fine mechanical bodywork to a fertile chassis, so he avoided the children that his lifestyle would have sent to the poorhouse.
But perhaps I shouldn’t preach: This post is slightly late because I’ve been assembling one of these in my back garden. Even worse, I bought it in Waitrose on a whim, and it cost me £50 more than it will cost you if you follow that link.
Still, it’s summer and the time for spontaneity. Perhaps I’ll post some pictures next week if the weather holds!
From the blogs
- Financial freedom: It’s about time, not money – Allan Roth
- The stock picker’s quest for alpha – Canadian Couch Potato
- The perfect portfolio: Don’t bother trying – Oblivious Investor
- Philip Taylor’s first (bumpy) year as a full-time blogger – PT Money
- Three reasons to avoid corporate bonds – Larry Swedroe
- A close brush with consumerism – Simple Living in Suffolk
- College a better investment than stocks – Consumerism Commentary
- de Tocqueville: Trust in self-interest – The Psy-Fi blog
- Why physicians are not wealthy – Kevin MD
Mainstream money sites
- Greek austerity looks doomed to fail – The Economist
- The 300-year history of UK interest rates [fortnight old] – MoneyWeek
- How earnings ‘surprises’ are gamed – Wall Street Journal
- UK investors lose £250m to tax [See our guide] – FT
- ‘Deep value’ investment trusts – FT
- Merryn makes a contrarian case for Europe – FT
- Risks and wherefores of investing in fine wine – FT
- Gold ATM installed in Westfield, Shepherd’s Bush – Telegraph
- Public sector pensions are still very attractive – Telegraph
- Who will pay for your long-term care? – The Independent
- Kirsty and Phil’s housebuying app – The Guardian
- And finally, a chap who ran 66 marathons in 66 days – The Guardian
Like links? Subscribe (for free!) to keep ’em coming.