This blog is primarily about bad advice, that is, the recommendation of unwise money choices. But I also have a nice sideline going in misinformation, statements about personal finance that are not merely foolish, but are flat-out objectively wrong.
A recurring topic in that area, you might call it a running gag, is the lack of tax saving advantages of Roth IRAs over 
traditional ones. When I started this blog a few months ago I assumed that most of the people who published misinformation about Roths knew better but had some motive, be it sinister or well-meaning, to mislead. Now I understand that they just don’t understand what they are talking about.
The latest infuriating instance of this is a blog post on Mint.com written by Michael B. Rubin, author of the book and blog Beyond Paycheck to Paycheck and "President of Total Candor, a financial planning education company." It was linked to by the Wall Street Journal’s Wallet blog.
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There was just so much exciting frugal material in July that it took me an extra two days to sort through it all.
Many of the posts in the best frugal blogs are seasonal, so it should be no surprise that July brought a wave of excellent tips on Christmas shopping. (For example, here, here, here, here, and here.) Being Frugal (the fourth link) suggested getting your family photo taken now when studios are not so busy. I think that’s better than paying more in November, but if you were really being frugal you’d just use the same picture every year.
Speaking of Being Frugal, its author has decided to go on a "change fast" for August. The plan is to not spend coins received in change and to save them instead. How could that not increase wealth? My plan is to visit the ATM every morning, withdraw $100, not spend it during the day, and deposit it back in the bank each evening. By the end of the month I will be rich.
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Last week the Baltimore Sun ran a list in picture gallery form of "Money Wasters to Avoid." It got picked up by the often amusing Consumerist, which 
was then noticed by the WSJ’s The Wallet, which is where my jaded mouse found it. And now I am going to write about it too.
To be fair, this particular bit of sound in the blogosphere echo chamber hasn’t much substance and likely wasn’t intended to be taken very seriously. I imagine a few summer interns brainstorming a list of things people waste money on, rounding up some stock photos, and then poof, it’s internet content.
But if I limited myself to commenting on things that truly deserve comment this blog wouldn’t be much fun to write.
The thirteen wasters of money are: the lottery, books, eating out, pets, DVD rentals, ATM fees, cigarettes, coffee breaks, bottled water, designer clothing, car washes, speeding, and bars.
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As I write this, the S&P 500 is threatening to touch 1000 again. That would represent a gain of 47.8% since it’s low on March 9th, essentially delivering a good five years of appreciation in five months. That’s probably inspiring feelings of enthusiasm for investing in the stock market in many of you.
On the other hand, the last time the S&P touched 1000 was on Election Day, 
November 4, 2008, meaning the market has merely broken even over the past nine months. And it’s down 20% since this time last year. So maybe not so enthusiastic.
Oh what to do? You don’t want to miss out on the big gains if the market continues to recover, but you are really scared of the possibility that it won’t recover and will go down again.
Enter the miracle of principal protected notes, otherwise known as market indexed CDs. These allow you to have it both ways, more or less. You can’t lose money and you get at least some of the potential upside from the stock market. A typical proposition might be that you deposit $1000 today and in five years you will get half the gain in the S&P over the next five years or, should the market not go up, your $1000 back. Sounds like a free lunch, doesn’t it?
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As numbers go, the results of surveys are not my favorites. Especially with regard to economic issues, I’m a lot more interested in what folks actually do with their money than what they say to a stranger who calls them on the phone and asks them what they think.
Still, numbers are still numbers and there’s a lot to be said for quantifiable data of any kind relative to the opinions and speculations of those of us with the time to type. And one of my favorite places for numbers is Gallup.com. The site is just filled to the brim with juicy tidbits, and more arrive every day.
For example, Joe Biden is unpopular. I think of him as an amiable place-holder, certainly more likable than the last few veeps. (Darth Vader, The Inventor of the Internet, and Mr. Potatoe Head, respectively.) Alas, America does not agree with me, giving Joe lower favorability ratings than his predecessors. The same survey shows that Obama is about as popular as George W. was at this point in his term, which is surprising, given Obama’s margin of victory last fall and Bush’s non-margin of victory in 2000.
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traditional ones. When I started this blog a few months ago I assumed that most of the people who published misinformation about Roths knew better but had some motive, be it sinister or well-meaning, to mislead. Now I understand that they just don’t understand what they are talking about.
Investing, Media, PF Blogs, Taxes | Frank Curmudgeon | 
August 10, 2009 11:59 am | 
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