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Beyond Buy-and-Hold #86
By Rob Bennett
 The last 30 years of academic research shows that long-term investors MUST change their stock allocation in response to big shifts in valuation levels. That’s why I favor Valuation-Informed Indexing over Buy-and-Hold strategies. Stocks are riskier at times of high valuations. Thus, investors who stick with a single stock allocation at all times thereby permit their risk profile to get wildly out of whack.
There’s one complication.
Short-term timing doesn’t work. That is, you cannot expect to see good results immediately following your switch to the Valuation-Informed Indexing approach. You might lower your stock allocation when prices rise to insanely high levels and then stocks might do well for another two or three years. Or you might increase your stock allocation when prices fall to juicy low levels and then stocks might do poorly for another two or three years.
Why investors resist this strategy
Continue reading Why You MUST Change Your Stock Allocation from Time to Time →
Guest Post
 Buying a home requires setting aside money for the initial down payment, closing costs and normal monthly payments on the home. Saving money for a house is a goal that many individuals strive to achieve and with a few simple methods it is easier to save more cash for that house purchase.
Stop Using a Dryer
Dryers are convenient because the clothes are finished within an hour, but it also adds up in costs. Renters who have a washer and dryer in the apartment or house they are renting can hang clothes to dry instead. This will result in a dramatic reduction of energy costs throughout the year. You’ll probably need to find effective ways to hang your clothes to dry inside your home as many neighbourhoods and apartment complexes frown on laundry outside.
Write a List for Shopping
Shopping is a necessity in life, particularly in the case of groceries. It is also the time that impulsive spending is particularly easy. Taking time to sit down and plan out meals for the week and then write a shopping list will reduce the amount of impulsive spending and ultimately reduce the expense of shopping. Once inside the store you must also discipline yourself to stick to your list, otherwise having it will mean little.
In addition, before grocery shopping it is best to eat something to prevent hunger, which makes impulsive spending easier. Never go shopping on an empty stomach–it’ll end up costing you more.
Continue reading 7 Ways to Save Money for a House →
By Mike Brains
Hold onto your hard earned cash, by checking out the savings calculator widget below. This nifty little tool can help you get your finances in order and is really easy to use.
Simply enter a few details and find out what your savings will be worth after a short time or how long you’ll need to save a certain amount. You can also work out much you’ll need to save per month to reach a particular financial goal and can get a better idea of the interest you can expect to earn on your savings.
Money matters can get confusing, but this widget’s specifically designed to make things easy. If you want this handy tool on your site, just click the link at the bottom and paste the code wherever you want it to appear – simple!
Continue reading Get Your Finances in Order with this Savings Calculator →
Guest Post
Every day across the United States there are about 2,000 workers who have the misfortune of experiencing a job-related eye injury that requires some medical attention. This is a shocking number of injuries that the Centers for Disease Control and Prevention have revealed; and the worst part of all is that these are injuries are preventable by wearing safety glasses.
Shockingly, the financial cost of these injuries amounts to more than $300 million every year in medical costs, lost production time as well as workers compensation. The Occupational Safety and Health Administration (OSHA) compiled this figure and what they also address is that there is no amount of money that can truly reflect how these injuries have affected those who are affected. What can never be stressed enough is that anyone who may have any chance of sustaining an eye injury needs to be wearing safety glasses on the job (or at home if need be).
Bottom line, three out of five workers were not wearing safety glasses at the time of the accident according to the Bureau of Labor Statistics. Wearing the wrong kind of safety glasses is to blame for some of the other workers. Although they were wearing some form of eye protection, these glasses had no side shields. In some cases, people are wearing safety glasses when they should be wearing safety sunglasses to be able to better see what they are doing.
Continue reading Safety Glasses – There is No Excuse Not to Have Them →
Guest Post
 Depending on where you live, winter is either approaching or already upon you. The days are getting shorter, the nights have turned cold, and you may have already seen some snow flurries in the air. For some people, winter means holiday shopping and exotic getaways, ski chalets and warm fireplaces. For those of us in debt, however, winter simply means more expenses that we cannot easily afford. Our utility bills are higher. Our car may require maintenance. Our kids might need new coats.
These looming winter expenses can be discouraging. But before you despair and start taking out title loans, consider making an investment that should stand to drastically reduce your winter expenses. Consider, in short, going green this holiday season.
Here are some suggestions:
Get Energy-Efficient Light Bulbs
While more expensive than traditional light bulbs, energy efficient bulbs are proven to last far longer – a longevity that more than makes up for their increase in cost. Replacing the lights in your home, then, can bring in savings over the course of the winter months.
Continue reading Save Money By Going Green This Winter →
By Kevin M
 I’ve never taken part in a blog ”meme”, but Glen at Free From Broke nominated my site in on ongoing meme called “my 7 links.” It was created by a site called TripBase (click through that link to see the specifics).
To participate just match an article you’ve published to each of the 7 categories and then nominate up to five other bloggers to take part and continue the fun. It’s a nice way to feature some great articles people may not have seen in a bit.
Here are the 7 links from OutOfYourRut:
Continue reading My 7 Links – OutOfYourRut.com →
Guest Post by Timothy L. Barnes, CLU
This post is Tim’s response to my post of June 17th, The Self-Employed Health Insurance Dilemma. As a Chartered Life Underwriter, Tim wishes to point out that there are affordable health insurance options for the self-employed–and for nearly everyone else–if you know where to look and are prepared to make necessary trade-offs.–Kevin M
In the 1939 classic, “Mr. Smith Goes to Washington,” Frank Capra illustrated thatWashingtonD.C. had already become a place where politicians were willing to spread lies and misinformation to serve their own desire to hold onto power.
Nothing has changed in the last 60 years. Politicians have used the media to spread rumors about health insurance that are not entirely true. The only difference is that in 1939 the media was dominated by newspapers. Today, politicians prefer to smile in front of TV cameras.
The people called “journalists” in 1939 are now called TV anchors. Just like the “reporters” in the 1930s, TV news tells stories that will result in more advertising dollars. Newspapers before World War II and TV stations today honestly tells stories but with their own agendas in mind.
Continue reading There IS Affordable Health Insurance IF You Know Where to Look →
Beyond Buy-and-Hold # 45
By Rob Bennett
You’re walking down the street and a fellow offers you a proposition. He will flip a coin. You will say in advance whether you think it will turn up heads or tails. If you are wrong, you will pay him $10. If you are right, he will pay you $20.
The fellow is offering you odds strongly in your favor. There’s a 50 percent chance that you will lose money. But there’s also a 50 percent chance that you will gain twice that amount of money. Logic says that this is a good bet to take. Casinos get rich by setting things up so that they can be on the right side of bets like this. This fellow is offering you the opportunity to enjoy the edge ordinarily possesses only by casinos.
The behavioral finance literature teaches us that, if you are like most people, you will turn the fellow down.
Our aversion to losses is greater than the joy we feel in response to wins. Intellectually, the proposition being offered you is a winner. Emotionally, the edge you are being offered is probably not sufficient to persuade you to take a chance on suffering a loss.
Continue reading Fear of Admitting Investing Mistakes Can Cause Bigger Investing Mistakes →
Beyond Buy-and-Hold # 39
By Rob Bennett
Some people believe in God.
Some people don’t.
Have you noticed that those who believe find new evidence of God in everything they see? They look at the stars and they see evidence of God. They look at the grass and they see evidence of God. They experience hard times and that brings them to a closer relationship with God.
But those who do not believe find evidence that there is no God in everything they see. They look at the stars and they see evidence there is no God. They look at the grass and they see evidence that there is no God. They experience hard times and they become more confirmed in their minds that there is no God.
Both groups see the same things. They come to opposite conclusions about just about everything. Because they examine the same inputs from entirely different perspectives. It’s often the starting point in a logic chain that determines its ending point. Get the fundamentals wrong and you can never end up in the right place no matter how much work you put into the project.
Continue reading A Clash of Investing Faiths →
 If you are like me, you are always getting rid of stuff. Maybe you are in the process of moving, relocating, or simply doing some spring cleaning. Or maybe you are just clearing some much-needed space in your house.
Whatever the reason, it always gives me a sense of relief and accomplishment to fill up my trash cans with things I no longer need or perhaps things I never really needed in the first place. And I’ll bet you are no different.
Throwing Money Away
But there is one thing you would never think of putting in your trash can. That would be your wallet. Yet based on some of the things I see in the dumpsters at some of the storage facilities I visit, people may as well be throwing away their wallets along with all the money inside them.
Continue reading Is There Cash in Your Trash? →
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OutOfYourRut Disclaimers
General: Any information in regard to money, credit, personal finance, or in regard to any other monetary topic, provided or shared on OutOfYourRut.com is presented for information and entertainment purposes only and does not constitute financial advice. It is intended to provide general information only and does not constitute personal financial advice in regard to your specific circumstances...MORE-->
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