Investing: The four scenarios driving the markets now

Investors are in a market that is currently being driven by bets on the outcomes of four main global scenarios, according to today's link. For risk management purposes, traders keep their eyes and their portfolios consistent with their views on how these four events will play out. While everyday folks are not global macro traders, it's an interesting read because your portfolio can be significantly impacted based on what happens.

The four really big global events (Institutional Investor)

Insurance: Summer vacation season...car rentals...the scary insurance pitch

It's summer vacation season.  And if you need to rent a car, your probably not looking forward to trying to make snap decisions on all the pitches of the guy at the counter (esp. that scary pitch for the car rental insurance).  It's probably because you're not sure if you're getting ripped off, or you're already covered by your credit card or your auto policy.  Take a few moments to get more knowledgeable.

Rental car insurance:  Is it worth the price? (Fox Business)
Confessions of a rental car agent (Edmunds)

Today, renting a car can expose you to every ill known to consumers (Consumer Reports)

bloomberg

Personal Finance: Credit score surprises

A roundup of some recent links that discuss your credit score and ways you may be inadvertently hurting it and credit card balance pay down strategies to improve it.

Don't rent a car with your debit card - and others [walletpop]
Don't dispute a credit card bill when you're in the market for a loan - and others [more walletpop]
Alternate credit card balance pay off strategies [mint]

Conversations with super wealthy people

Some interesting philosophical gleanings on work and money from Barry Ritholz's conversations over the years with some of his High Net Worth clients.

Don't become "cash rich" and "time poor" and 6 other learnings (wapo)

Remodeling instead of moving

Today's link is for homeowners in the early stages of considering a remodel. Given the housing downturn that shows little signs of abating, more homeowners are needing or choosing to remodel instead of trading up to a home that more meets their current situation (why is here and here).

How to choose a general contractor (nytimes)

Retirement Planning: 411 on 401(k) loans

Today's post links you to 2 informative articles about taking a loan from a 401(k).  With credit from traditional loan sources harder to obtain, this is something the press is reporting as increasing in popularity.  If you really need immediate funds, tapping your retirement account is a viable option to consider.  But these articles also lay out some cautions.

A lender of last resort—your 401(k) plan (wsj)

The two biggest traps behind 401(k) loans and how to avoid them (forbes)

Investments: Greek debt 101

These days it seems like the Greek debt situation is controlling the markets.  Sometimes it's hard to understand why seemingly obscure developments have such a large impact.  Here are two links that help bring some clarity.

The big picture (fortune)

How to position our own portfolios (smartmoney)

Congratulations graduates - now what's all the studying worth?

Fascinating study from Georgetown University that quantifies the earnings power of specific undergraduate majors.  For new Psych and Social Work majors, which score the lowest median earnings, of course college is more than just securing future earnings.  For Tiger Moms where the paycheck is king, start steering your kid into Petroleum Engineering.

Congratulations graduates - now start paying back your loans

Class of 2011, most indebted ever (wsj).  In you are in this class, here are tips on keeping your pile o' debt under control.

Insurance and tax: Natural disaster readiness

Hurricane season has started and the devastating tornadoes are still fresh in our minds. Some recent links therefore have come across that provide good reminders and tips on readiness from insurance and financial paperwork perspectives.

Safeguarding your finances from natural disasters (Walletpop)
Tax tips: preparing for disasters (IRS on youtube)

Investments: Dollar cost averaging in question

Interesting study here from the Journal of Financial Planning for the numbers-inclined.  In the most realistic investing scenarios, the study results suggest there is very little economic difference between Dollar Cost Averaging and Lump Sum investing.  Empirical evidence does suggest that DCA produces some tax benefit associated with selling higher-bases stock. That tax benefit, however, does not make up for the loss of wealth accumulation of the DCA strategy compared with the LS strategy.

(For a another perspective)

Retirement: 5-year checklist to "R" day

You're about five years from retirement and you're not sure what you need to do be prepared?   Here is a WSJ checklist in consultation with Deena Katz, a noted personal finance professor at Texas Tech.

Economics: Where does the US stack up against your criteria for a better life?

Here's an interesting, certainly very colorful, tool from the OECD (Organization for Economic Cooperation and Development) - Prioritize 11 criteria from eduction to housing to jobs, based on what you think would mean a "better life" you, and see to which country you should consider moving. 

Investments - Pros and cons of dividend paying stocks

Stat of the day: 54 percent of the returns in stocks since 1928 have come from dividends.  Good nytimes article on the value of dividend stocks.

Investments - Burt Malkiel

Interview with Burton Malkiel, early proponent of index investing, including positive comments on high frequency trading, says it's OK to buy LinkedIn, and talks about a core and satellite portfolio.

Gotta know when to hold'em

Investments:  Interesting links to help you be honest with yourself on if you are gambling or investing in the stock market.  Kiplinger's summary of academic research. Take the quiz.  Personality traits of the stock market gambler.