Is It Dow 10,000 Or Dow 10000?
For Immediate Release
April 19, 1999
Media Contact: Will Casserly
wcasserly@ricedelman.com
(703) 251-0110
The Wall Street Journal and The Washington Post are at odds over whether the Dow Jones Industrial Average should feature a comma! Like most publications, the Post inserts a comma after the first zero, while the Journal does not.
Who's right? The winner of this debate is The Wall Street Journal, because it is owned by Dow Jones & Company, producer of the Dow Jones Industrial Average. Besides, a comma, which is used only to make 10000 easier to read, is unnecessary, because as the Dow rises, new numbers ? such as 10200, 10300, and so on ? will be easy to read without a comma.
Should You Pay Your Mortgage Every Two Weeks? No.
A caller to my weekly radio show asked, "Wouldn't it be smart to pay half your mortgage twice a month? That would pay off a 30-year loan in about 21 years." The answer is no. The reason: making half a payment every two weeks is 26 half-payments per year. That's the same as 13 full payments. So a bi-weekly mortgage plan requires you to make one extra payment per year ? 13 instead of 12. Invest that extra monthly payment in a good mutual fund instead, and you'll be way ahead.
Need Quick Cash? Try Hypothecation.
If you need to borrow money but can't get a loan, you could set up a margin account with your broker. But that assumes you have a brokerage account, something many people don't have. Also, you'd run the risk of having your investments liquidated if the market falls. So try hypothecation instead. This allows you to post your mutual funds as collateral with a bank, in order to get a bank loan. Just have your mutual fund company send you a certificate for some or all of your shares. Give the certificate to your bank; banks typically will lend you half of the certificate's value, and they will hold your certificate until you repay the loan. Meanwhile, you get to keep your mutual fund, and you get to continue enjoying their growth in value. (One note: you cannot do this with your IRAs or retirement plans!)
Did Jesus Preach The Financial Ten Commandments?
As we head into the Easter weekend, we note the following advice from Pastor Bill Hybels, Willow Creek Community Church, South Barrington, IL (847-755-5000). In his recent sermon entitled, "Money, Sex and Power: The Financial Ten Commandments", Pastor Hybels offers his parishioners these tips:
Thou Shalt- Work Hard
- Establish A Financial Plan
- Avoid Debt Like The Plague
- Distinguish Between Want And Need
- Determine When Enough Is Enough
- Get Involved With Get Rich-Quick Schemes
- Compete With The Jones (declare The Jones The Winner)
- Make A Major Financial Decision Without Getting Wise Counsel
- Corrupt Your Kids With Money
- Orient Your Whole Life Around Money (Don't Forget To Love)
Amen.
Pastor Hybels 11-page sermon, in full, is available from our offices.
Rescue Your Money, written by award-winning financial advisor Ric Edelman, is your personal investment recovery plan.
