What I’ve been reading – May 2017

Here are a few of the personal finance related articles I read and recommend you check out:

  • AND NOW FOR SOMETHING ON INDEX FUNDS, by Jason Zweig: I first came across Zweig in some of his articles in, if I can remember correctly, the Wall Street Journal. Then, I got a good dose of him when I read an edition of Ben Grahame’s The Intelligent Investor where that he had edited and made commentary throughout. He is an excellent thinking and writer and you should be sure to read him. My favorite part from this article: “What I wrote below, in 1997, was almost heretical at the time. I can still remember the dozens of letters — yes, letters, many of them written in pen on legal pad — I received from readers outraged that I didn’t respect their superior skills as fund-pickers. I also can still remember that many of the funds they were proudest at having identified have long since gone out of business.”
  • How to invest in your 30s: This article was geared towards people who haven’t done much thinking about investing. But I still like to skim articles like this. Here is one part that think is very helpful: “saving can be difficult when there are so many competing priorities for your dollars. That’s why it’s important to create specific goals”
  • Love And Finances: Is Money Tearing Your Relationship Apart?: “the biggest money mistake that couples make is not talking about it.” While my wife is not particularly interested in our family finances (at least on the management side), I always check in with her to make sure she is comfortable with our basic plan.

  • DONATING STOCK OPTIONS, PUBLICLY TRADED SHARES AND PRIVATE COMPANY SHARES CAN BE A WINNING STRATEGY: “In 2006, the federal government implemented tax rules that make it very attractive to donate appreciated publicly traded securities such as stocks … that are held in a non-registered investment account. … If you choose to sell the appreciated securities, you would incur a taxable capital gain. However, if you donate the securities (in-kind) to a charity, you avoid the taxable capital gain and receive a charitable receipt for the market value of the securities you’ve donated. The charitable receipt can then be claimed on your income tax return.” We have been using this method to make our donations to charity and it has worked well. The charity gets its donation and we save money by not paying any capital gains tax.

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