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 [1], 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 [2]
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 [3]
- The stock picker’s quest for alpha – Canadian Couch Potato [4]
- The perfect portfolio: Don’t bother trying – Oblivious Investor [5]
- Philip Taylor’s first (bumpy) year as a full-time blogger – PT Money [6]
- Three reasons to avoid corporate bonds – Larry Swedroe [7]
- A close brush with consumerism – Simple Living in Suffolk [8]
- College a better investment than stocks – Consumerism Commentary [9]
- de Tocqueville: Trust in self-interest – The Psy-Fi blog [10]
- Why physicians are not wealthy – Kevin MD [11]
Mainstream money sites
- Greek austerity looks doomed to fail – The Economist [12]
- The 300-year history of UK interest rates [fortnight old] – MoneyWeek [13]
- How earnings ‘surprises’ are gamed – Wall Street Journal [14]
- UK investors lose £250m to tax [See our guide [15]] – FT [16]
- ‘Deep value’ investment trusts – FT [17]
- Merryn makes a contrarian case for Europe – FT [18]
- Risks and wherefores of investing in fine wine – FT [19]
- Gold ATM installed in Westfield, Shepherd’s Bush – Telegraph [20]
- Public sector pensions are still very attractive – Telegraph [21]
- Who will pay for your long-term care? – The Independent [22]
- Kirsty and Phil’s housebuying app – The Guardian [23]
- And finally, a chap who ran 66 marathons in 66 days – The Guardian [24]
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