Q & A : How can a successful approach be so simple?

Posted on June 10th, 2009 in Investing, Q & A | Leave A Comment

Q : Spencer, If the successful approach (e.g. Rainbow Portfolio ) is so simple, why isn’t it exploited by all the funds out there? (Also, what is the expectation for the fund and upcoming (two year) market? ~H

A : Dear H,

Most funds are set-up to be actively managed funds.  I think that most investors like the possibility of making a killing and the Rainbow Portfolio doesn’t offer that.  So, even though over 90% of professional fund managers underperform the index funds, they keep at it because it’s so exciting to people to pick a fund that is smarter than the rest.
Over such a short time frame like 2 years, I have no idea what the fund will do.  It also depends on how much of the fund you decide to allocate to our fixed income category.  Over longer period of times, it has averaged between 5 to 13% per year.
Spencer

Q & A : Hamster In a Wheel

Posted on June 1st, 2009 in Investing, Q & A | Leave A Comment

Q : Dear Spencer,
I feel like a hamster in a wheel.  I am a money saver.  I have ever shifting goals (forever higher) for my bank balances.  I am constantly plotting how much I will have in the future which takes all the joy out of today.  I become anxious if I cannot save the projected amount I had planned.  How can I free myself with this saving fixation?  It is making me and my family miserable.

~R

A :

R -

Recall a time in childhood when you learned to just save and save. Realize that all your saving habits originate in childhood.

Do the Actual Net Worth statement on my website and in my book.

Read my chapter on Sufficiency. Nobody ever gets to their future savings goal. We all want and more. The solution to the wanting mind is to write down your financial gameplan with the assumption that you have all the money you’ll ever have right now.

Start spending small amounts of money on pleasure items even if it feels uncomfortable.

Look into attending my Esalen or Harbin workshop.  A workshop will allow you to go into these issues deeply and will accelerate your progress. See www.currmoneymadness.com/register.

All the best,

Spencer

Q & A : 4000.00 in debt plus car loan of 8000.00….

Posted on May 11th, 2009 in Excersises, General, Investing, Q & A | 1 Comment

Q :
I am a 52 year old woman and in 1980 I broke my back and was paralyzed from the waist down.  Wayne Dyer came to see me and encouraged me to walk again and I do but am in constant pain.  It is difficult to work alot. I collect worker’s comp and make a small amount on my own.  I am now 4000.00 in debt  plus my car loan of 8.000 dollars.  I am barely making it and have trouble not flying into fear.  What  suggestion can you give me to stay calm and not so scared.

~C.V.

A :

  1. Find a friend who has no agenda with each others  financial ally or money mentor and meet 4 times a year w/this person to review your finances.
  2. Start collaborating with your friends; you might surprise yourself with a new source of income.
  3. Do the Intentional Spending statement that’s on my website, under tools and resources on the home page.
  4. Read my book – it is all about getting out of fear and into your creativity and wisdom around money
  5. Do the money breath everyday that’s explained in book.

Good luck and remember that there are billionaires in poor health who would envy your situation.