Category: Investing

What is the Most Popular Fund For Retirement Accounts?

|
Oct 17, 2017
|
Savings, Research, Retirement, Index Funds, Investing
Answer (with hat tip to Big Picture Blog who posted this research study 401(k)/IRA Holdings in 2016 published by the Center for Retirement Research): Target-Date Funds now used by 72% of participants in retirement plans at Vanguard. For more on Target Date funds, check out this NGPF primer with an activity idea too.  ----------------- Check out this NGPF Case Study: Compound My Interest in 401(k)s              ...

NGPF Podcast: Tim Talks To Ted Benna, "Father of the 401(k)"

|
Oct 08, 2017
|
Podcasts, Index Funds, Investing, Retirement, Compound Interest
401(k) plans have gone from 0 to about $5 trillion in assets in just 35 years. They have become THE dominant way that people save for retirement today as pensions have become a thing of the past. Today on the NGPF Podcast, you will hear from the "Father of the 401(k), Ted Benna." You will hear about his "aha moment" that led to the birth of the 401(k), the challenges of getting employers and employees to adopt the program in the early years and his opinion of 401(k) plans today. Enjoy! Details:...

Student Debt: A Detriment to Homeownership?

|
Oct 04, 2017
|
Article, Personal Finance, Investing
Imagine not being able to afford a house of your own because the financial burden of student loans prevents you from saving for a down payment. This is the unfortunate reality is that many students face since the income they earn after they graduate college isn’t sufficient from to both pay down their student loans and start saving for a house. An article from MarketWatch highlights how student debt has impacted the quality of life for many Millennials, and infers how homeownership is just...

Saving vs. Investing: Where Should You Put Your Money?

|
Sep 29, 2017
|
Article, Budgeting, Stocks, Personal Finance, Investing
Warren Buffett, perhaps one of the most well-known investors (and philanthropists) of our time, once said, “Do not save what is left after spending, but spend what is left after saving” (EOC POTPOURRI: Financial Literacy Edition). These days it’s all too easy to follow the mantra “treat yo self” and spend your hard earned money on things you don’t necessarily need the minute you get that direct deposit notification. So how much should you save every time you...

What Company Has Created The Most Wealth Since 1926?

|
Sep 25, 2017
|
Investing, Stocks, Chart of the Week, Question of the Day
And the winner is.....Apple at almost $1 TRILLION! Great chart from NY Times shows the 50 companies that created the most wealth in the last 90 years (size of the circles is based on the company's compound annualized stock return): Questions: In your own words, how does the graph measure wealth creation?  In looking at the wealth created by companies that have been publicly traded for less than thirty years, what industry are most of the companies operating in?  Which ten companies...

Question: What's Your Tolerance for Risk?

|
Sep 21, 2017
|
Investing, Stocks, Index Funds, Article, Question of the Day
One of the most fundamental questions when creating an investment plan is assessing how one feels about risk, or to put it more specifically, how does one feel about losing money. If you feel the need to check your investment portfolio every hour or so fearing an incipient crash, well you might not do well with a 100% stock portfolio. Similarly if you are a buy and hold (and forget) type, and you understand the value of long-term investing and bought more stock in 2008 when the stock market...

Activity Idea: 36 Obvious Investing Truths

|
Sep 19, 2017
|
Investing, Activity, Activities, Article, Stocks, Index Funds
I am an avid reader of Ben Carlson's Blog A Wealth of Common Sense for a good reason; he takes this complex topic of investing which vexes many an educator and makes it accessible and simpler for all of us to understand. His recent post, 36 Obvious Investing Truths is a great example of this common sense approach to investing as he distills his years of experience into a set of "truths." Here are a few examples: 1. If you need to spend your money in a relatively short period of time it...

What I'm Reading...

|
Sep 16, 2017
|
Identity Theft, Investing, Current Events
Interesting articles I stumbled across this week: Diversification sucks (Bason Asset Management) We all know investors are supposed to diversify their investments. It's really hard in practice though because you accept that not all of your investments will be top performers. This article provides the psychology behind what makes diversification so difficult.  If You Want to Feel Better, Spend Money on Saving Time (Wall Street Journal) "People feel happier when they pay to save time...

Question: What's the Probability That You Will Live to 100?

|
Aug 30, 2017
|
Question of the Day, Savings, Research, Current Events, Investing
Talking about investing for retirement may seem abstract to your students, but what if you framed it from a longevity perspective? Do you want to prepare your financial life knowing that you could live to 100? This MarketWatch article provided some actuarial tables showing the probability of living to 100 for different age groups: So students in your class have a not too insignificant chance of making it to 100 (6.1% for men who are 25 today and 10.2% for women of the same age). Ah, the powers...

All Rise! Invest In The Judge?

|
Aug 29, 2017
|
Investing, Current Events, Career
Thanks to NGPF Fellow, Brian Johnson, for this entertaining post about collectibles and how the value of one baseball card has risen in light of an outstanding rookie season.  ------------------------------- Building an investment portfolio should be made up of a good diversified stock index fund (e.g., S&P 500), perhaps a tech focused fund and maybe some international flavor.  But what about collectibles?  People have been investing in coins and stamps for years.  What...

Finance in My Life

|
Aug 22, 2017
|
Investing, Savings, Retirement, Student Loans
Just back from vacation and reflecting on various conversations that arose in the course of my travels. As anyone who has listened to my podcasts knows, I like to ask lots of questions but in the conversations described below, finances were brought up without my prompting. Here's what I heard: A 67 year old cab driver lamented the fact that he was collecting his Social Security check which wasn't enough. As a result, he had this side hustle driving a cab. "If I had only socked some money away...

NGPF Podcast: Tim Talks to Innovative Financial Educator, Lothar Konietzko of Everett High School (Lansing, Michigan)

|
Aug 22, 2017
|
Podcasts, Investing, Savings, Entrepreneurship
From his first job delivering newspapers to assorted "side hustles" he had in high school and college, Lothar Konietzo learned early on the value of saving money. I became aware of Lothar's work as he was recently recognized by VISA as an Innovative Educator. You will enjoy hearing about the creative activities he has developed to engage his students. These include using sneaker culture to teach entrepreneurship and how he has adapted the stock market game to teach the importance of long-term...

Interactive Handouts Courtesy of Barbara O'Neill and Kerri Herrild!

|
Aug 11, 2017
|
Interactive, Budgeting, Featured Teachers, Investing, Lesson Idea, Tips for Teachers, Summer Institute, Teaching Strategies
As part of our Summer Institute session, educators had the opportunity to take an engaging personal finance interactive resource and create a handout to accompany it.  Hat tip to Barbara O'Neill of Rutgers University, New Brunswick (NJ) and Kerri Herrild of De Pere High School, De Pere (WI) who shared their finished products with us. For those of you looking for high quality, engaging, resources guaranteed to get your students thinking about their financial mindset, look no further than...

Interactive: What Happens To Risk When Your Investing Period Lengthens?

|
Aug 08, 2017
|
Investing, Chart of the Week, Question of the Day
From Of Dollars and Data: Over 1 year periods, markets can be very chaotic for both U.S. bonds and U.S. stocks. This is also true over shorter time horizons (i.e. monthly, daily, intra-day, etc.). However, the chaos fades as the time horizon increases. Below is an animation I created that shows the S&P 500 and U.S. 10-year Bond returns as they vary from a 1-year horizon to a 30-year horizon. Here are two charts from his animation (it changes before your eyes if you cilck on the link above):...

This 48 Minute Podcast Explains The Investing Revolution

|
Aug 01, 2017
|
Index Funds, Research, Investing, Stocks
Teachers often complain that investing is one of their most challenging topics to teach and surprise, surprise, it is an area that students struggle with understanding too. So much jargon (P/E ratios, dividends, IRRs, oh my), so many choices (thousands of stocks and mutual funds to choose from) and so little experience. It’s no wonder that it can seem so overwhelming. Yet there is another way to think about investing and it has one major difference from the existing way that it is taught...

Search The Blog

Categories