Investors have a few options on what to do with their money. Let’s play out some of the scenarios. One: Hold cash, 6 month CDs currently yield below 1% Two: Purchase Government Debt, risk free 10 year treasury bonds currently yield below 2.5% Three: Purchase High Yield Debt, currently yields roughly 7% Four: Equities, high [...]
The Cost of Leisure and What You Should Do About It
Sitting on a public park bench is not free. Although it may not require you to hand over any money, it still carries an implicit cost – OPPORTUNITY COST. Instead of slaving away at your local McDonalds (where you may actually be earning more per hour than the average investment banker), you decide to spend time at the park enjoying the warm rays of light hit your face while you update the world via twitter. Every hour spent sharing your 140 character thoughts is an hour that could have been devoted to flipping some burgers and dishing out fries. Time devoted to leisure is time that could have been devoted to work, effectively equating cost of leisure to the wage rate per hour of work. So in theory, an increase in your hourly wage is actually making your stroll through the park more costly! Makes you think twice about celebrating your next promotion.
Not Working Yet Getting Paid
With the midterm elections in sight, I find it appropriate to discuss some policies of the current administration as Americans no doubt will be presented new ideas and promises when politicians rush to secure their future seats. In normal times – are these normal times? Are we witnessing a new normal? I digress – when a person loses his/her job, that person is eligible for unemployment benefits for up to 26 weeks. The United States government has passed legislation to extend benefits to as much as 99 weeks, providing a roughly two year period to find gainful employment!
End of Summer
With the Labor Day weekend upon us – we begin to exchange our goodbyes with the passing summer. It has been a hot and humid one, especially when one spends a small portion of each day in the subway systems of New York City. Whether you are spending time with family around the grill or stuck behind a desk working on an assignment that had been devilishly brought upon you by a higher authority, I wanted to lighten things up and kick off the fall with a cool and refreshing post.