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$100 Million Room with a View, or Not

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You just gotta love the obnoxious real estate prices in Manhattan. Vornado Realty Trust’s 220 Central Park South has already secured $1.1 billion, or one-third of the building, making it already profitable reports the WSJ. “We are doing beyond well,” said Vornado CEO Steve Roth. Yawn. Then you have the penthouse at the building called One57 (how clever) which sold for $100 million in January. The view must be really pretty, or not. Read this comment from a WSJ reader: Actually, looking at the building (One 57) from Central Park on Saturday it appeared that the top ten or so floors were … [Read more...]

“The Moment” I Lost Money

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If you’re over 50 and lived in or around the Boston area during the 70s then you know the moment. 45 year’s ago, Mother’s Day 1970, Bobby Orr took the pass from Sanderson, scored to clinch the Stanley Cup, and “The Flying Bobby” was born. That was the defining moment in Boston sports for Boston Globe sports-writer Kevin Paul Dupont. In describing his most important moment in Boston sports he talks about winning and losing. It made me think about making and losing money. I lost money at a very early age and it hurt. The summer between my Junior and Senior years at Babson I had an … [Read more...]

Bond Bubble

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I've been hearing, and reading a lot, and I mean a lot, about the bond bubble. But you know what? I’m not concerned in the least. I’ll tell you why. Yes, I know the Fed is talking about raising rates this year. But you and I know the economic reports they gloss over, and wax and wane about, have zero to do with the economy you and I deal with—the one we live and breathe everyday— you know, the real world. And yes, I know how bonds work: when interest rates go up, prices go down. I get it. But the Fed has almost no control over interest rates that you and I care about. They control the … [Read more...]

Be Great at One Thing and…

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You may know Mark Knopfler, the “Sultan of Swing,” from his years fronting the rock band Dire Straits. Well he’s still pickin' that guitar. He released another solo album this year, Tracker. Talk about being great at one thing. You don’t have to be great at just one thing to create wealth, but it definitely helps. I was speaking with a prospective client last week who is great at one thing. But he didn't start out that way. He said he remembers dumping change on the dining room table to come up with enough money for a gallon of milk when he and his wife were raising their young family. … [Read more...]

It’s Never Too Late

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Do you remember the first rock concert you ever went to? Mine was actually more of a "Rap" concert. I was 16 years-old working at Oxford Creamery in Mattapoisett, MA scooping ice-cream and serving fried clams, lobster rolls, and coffee frappes. Some co-workers had an extra ticket to see rappers Run DMC and DJ Jazzy Jeff and the Fresh Prince the following night at the Providence Civic Center. The Fresh Prince is actor Will Smith. I was reminded of the concert over the weekend while watching this video at a baseball camp with my son. Will Smith is a winner. Here he gives a great message for … [Read more...]

The Power of Compound Interest

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Making money with your money is a no-brainer. Take a look at the difference in returns between two $40 investments in Coca-Cola in 1919. One had dividends put into a piggy bank. The other had dividends reinvested. Without reinvesting, the initial $40 investment grew to $456,273 by 2012. With dividends reinvested, the value increased to $9,876,106. That's a difference of over 2060%. That's the power of compound interest. … [Read more...]

Assets Are Booming

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With the Fed creating money out of thin air, real estate prices such as commercial and condos are going up like crazy especially in places like New York City and Miami. My family was in Key West in March and I can tell you restaurants aren’t lowering their prices. And there’s a ton of money in certain pockets. I’ll use the boat racing teams in Key West back in November as an example. There’s no shortage of spending power on toys here. Check out Miss Geico, which won the event. But again there’s deflation too. For retirees it’s a brutal deflationary environment for interest bearing … [Read more...]

Advice from My Father

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When I was a kid my dad would talk to me about money. It was usually unsolicited advice. You know the kind. The advice he would give was the same advice his father had given to him when my dad was a kid. It was more of a question. “When is the best time to plant a tree?” he would ask. I had never planted a tree so I didn't know. Then he’d answer “Yesterday.” I would think, “Great I’m already behind.” Then he would ask, “When is the second best time to plant a tree?” And he’d answer, “Today.” And I would think, “But I have a baseball game.” Thinking back on his  advice this morning I … [Read more...]

Thank You Julia Child

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You never know the power of a hand-written thank you note. I was reminded of this yesterday reading about a thank you note Julia Child wrote before her death. She thanked Roger Berkowitz, president of Legal Sea Foods, for a clambake he had sent to her. It was a special note for Mr. Berkowitz. Julia Child was a loyal customer and a family friend. Their relationship went back to the days when his family ran the fish counter in Cambridge, MA. "We were her fish store," recalls Berkowitz. The note is framed and hangs in his office. I'm sure it reminds Mr. Berkowitz every day. It's a … [Read more...]

Tax Day: Top 20% Pay 80%

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As if April 15th wasn't depressing enough the WSJ reminds us that the top 20% of earners pay 84% of the income tax. The bottom 20% get's paid by Uncle Sam. Who pays what in income taxes? With April 15 just around the corner, filers may be curious about where they fit into the system as a whole. The individual income tax remains the most important levy in the U.S., providing nearly half of federal revenue. This is unusual: On average, developed nations get only one-third of their revenue from income taxes. Typically they also impose national consumption taxes, such as a value-added tax, … [Read more...]