After the recent, highly publicized crash of the Costa Condordia, people around the world are looking hard at the cruise vacation industry. While everyone is focusing on the problems today, it might be a good place for you to invest for tomorrow.

Carnival Corporation

Costa, a cruise line that I have traveled on twice, is owned by Carnival Corporation (NYSE: CCL). Carnival is known for running cruises under the brands Carnival, Costa, Holland America, Princess, Seabourn, AIDA, Cunard, Ibero , and P&O Cruises. Carnival owns a tour company, 15 hotels, 395 motorcoaches, and 20 rail cars.

The brand owns dozens of ships around the world complete with casinos, bars, night clubs, excursions, and dozens of other ways to make money. Of course, running a cruise line is not cheap. The company is operating floating hotels that require fuel, staff, entertainment, maintenance, and regulatory adherence.

The company earned nearly $16 billion in revenue in fiscal 2011 and had earning per share of $2.42. The company issued a $1.00 dividend in 2011, which is about 3% of the investment value. Even better, if you are a regular cruiser, if you own 100 shares of CCL stock, you get a shipboard credit of $50, $100, or $250 depending on the length of your trip on all Carnival brands.

Royal Caribbean

Royal Caribbean Cruises Ltd. (NYSE: RCL) is another Florida based cruise operator best known for its flagship Royal Caribbean branded cruises. Royal Caribbean operates more than 40 ships under the brands Royal Caribbean, Celebrity Cruises, and Azamara Club Cruises in North America. Pullmantur operates in Spain, Portugal, and Latin America and its CDF Croisieres de France serves the French market. It is also a 50% owner in a German based cruise operator.

Royal Caribbean pulls in an annualized $9.2 billion in annual revenue based on its most recent quarter. It pays a 1.4% dividend and offers a similar shipboard credit to Carnival.

While the company looks to be in a cash flow crunch on its most recent earnings release, I believe the long term prospects for this company are bright, just like Carnival, as the economy continues to improve.

A Sunny Future?

Having been on four cruises myself, I can tell you that good weather means everything for an enjoyable cruise. Likewise, a good economy means everything for a tourism company.

Recent economic reports show that consumer spending and confidence is growing. While unemployment slowly decreases, tourism will pick up steam. As long as we stay on track for economic recovery, I think you can expect these investment opportunities to perform very well.

If you are nervous about cruises but want to invest in other tourism companies, be sure to look into the hotel and casino industries. I believe they will have similar results as the economy expands and will all offer a good opportunity for solid investment gains.

Have you ever invested in cruise companies or tourism based stocks? Do you think I am right? Please share your thoughts and experiences in the comments below.

Image by Accidental Hedonist.

Investing in the Cruise Industry is a post from: Narrow Bridge

Related posts:

1. Valuation of Stock by Comparing to the Industry
2. What Price/Book Ratio Means in Investing
3. Intro To Investing

In 1997, Reed Hastings and Marc Randolph created a company called Netflix. Hastings was angry about a late fee charged when he turned in the movie Apollo 13 after the due date. His business was about to change the entertainment industry forever and evolve into one of the most recognized brands in North America.

The Business

In 1999, the company evolved. Late fees and shipping fees were removed. You could manage your movie queue online and Netflix would ship you the next DVD on your list. When it arrived, you could keep it as long as you wanted. When you were done, you just sent it back and the next movie on your list came to your mailbox. The company also looked at your rental history to suggest movies you would enjoy.

That business model worked well, but Hastings was not one to wait for the trend to pass him by. While he was eating away at companies like Blockbuster and Hollywood Video, Hastings introduced a new product that would compete with pay-per-view cable and satellite providers. Netflix streaming revolutionized the way many of us watch movies and television. Through your computer, game system, web connected TV, or streaming device, you could just watch a streaming video on demand using your remote.

It changed the way I use my TV. I cancelled cable and get most of my entertainment from Netflix for a flat rate.

The Money

People loved it. By 2009, the company had grown to 10 million subscribers, most of whom were loyal to the company based on great customer service and reasonable prices. The 2002 IPO at $15 per share was just the beginning of a meteoric rise. As the subscriber numbers grew, so did the profit. As profits rose, the stock price skyrocketed. The stock split in 2004 and remained relatively flat until 2009. That year, investors took notice. The stock ballooned to over $50 per share by the end of 2009 and $175 in 2010. It seemed that Reed Hastings could do no wrong.

2011 kept the momentum going. By mid-2011, the stock broke $300 per share, reaching a peak of $304 in July. That is when Hastings screwed up. He screwed up bad.

If It’s Not Broke…

If something is working really well, it is probably not a good idea to piss off your entire customer base. While changes to the user profiles and site layout annoyed a few customers, the business model and pricing had been unchanged in quite some time. Rather than make a small increase to offset rising costs, Netflix split the DVD service and streaming service into two products giving customers an effective price increase of about 60%.

People were not happy. Thousands of customers fled the service. Then tens of thousands. Then hundreds of thousands.

Then they made it even worse. Hastings announced that he was sorry for upsetting so many customers, but that rather than make them happy, he was going to split the DVD service into a new company called Qwikster. The seemingly poor planning was bad for the company and agitated subscribers. More customers walked away.

The Fallout

On October 24th, 2011, just minutes after the markets closed, Hastings announced Netflix’s Q3 2011 earnings. They were not good. 800,000 subscribers cancelled. The company is on track to a net loss. The stock plummeted about 35% on October 25th. From its July peak, the stock was down 75% or $227 per share. Ouch.

The Lesson

If you are an entrepreneur, blogger, manager, or business leader, don’t fix what is not broken. Don’t alienate your customer base. Don’t make people feel like they are not being listened to. Don’t follow a mistake with another mistake that is just as bad. Don’t scare away nearly 10% of your customers and see service level declines for thousands more.

Reed Hastings revolutionized entertainment, but he will not be remembered for that. He will be remembered for raising prices 60%, the Qwikster debacle, and the 75% drop in his share price in three months. He will be remembered for breaking the rule that took him to the top: keep your customers happy.

How can you apply these lessons to your life? If you are a blogger or entreprenuer, what can you learn from Hastings’ mistakes? Please share your thoughts on those question and the Netflix story in the comments.

Image by Marit & Toomas Hinnosaar.

The Meteoric Rise and Fall of Netflix is a post from: Narrow Bridge

No related posts.

While they are not in all the headlines anymore, the Occupy movement is still going strong around the country. From Occupy Wall Street in New York to Occupy Denver in my neighborhood, the movement has gained media attention and thousands of supporters, but what are they really doing and what are they all about?

Why They Are There

There is a lot of confusion, even among some of the protestors, about what the Occupy movement stands for. As far as I have been able to draw out from the New York, Denver, and Boston websites, they are there because they are mad and frustrated.

Distribution of Wealth – The occupy folks are mad that the top income earners make such a large share of income and hold such a high percentage of wealth. The growing inequality is a primary reason for their anger. The top 10% of Americans hold 80% of all wealth in the United States. The top 20% of Americans earned 49.4% of income in 2010 while the bottom 15% earned only 3.4% of the income in the country. Over the last five years, studies have shown that the United States has one of the top income inequalities of comparably developed countries.

Corporate Greed – The movement has been vocal about corporations gouging the middle class for higher profits. While many banks are making record profits, they are evicting people from their homes. The protestors have gone so far as to ask for the banks to forgive debt to some people that can’t afford their payments.

A Clear Goal?

While we know why they are protesting, the movement has been slow and unclear about clear goals. They are mad at banks and rich people and politicians, but they lack a clear message and direction.

Like the Tea Party protests in 2009, the Occupy movement has potential to make an impact in the United States. In the most divided political time in recent memory, the far right is well represented in the government but the far left is not. To make an incredibly nerdy reference, they have potential to “bring balance to The Force.”

My Opinion

I absolutely hate the Tea Party and I don’t hate the Occupy movement. However, I do not agree with everything they have to say. I do support freedom of speech and both groups’ rights to speak their mind and peacefully assemble. Free speech, a First Amendment right, is a higher law than any municipal ordinance or state law, and these people have a right to be on public land to make their point.

I do support higher taxes on the top 1% (people who make over $550,000 per year can afford it) as a way to help balance our budget. I do support higher taxes, but not as dramatic, on the top 2% (about $200,000 and up).

I do support a simplified corporate tax code that would bring our corporate taxes back in line with the original rates. There are so many deductions and write offs that some of the biggest companies do not pay any taxes at all. We have one of the lowest effective tax rates in the OECD, and you can see what that has done to help our deficit.

I do not support a Robin Hood steal from the rich and give to the poor scenario. Income disparity happens, but life is not fair.

I do not support a debt forgiveness program. People signed the papers to take out a loan. If they signed up for something they could not afford, it is not the bank’s fault. The banks were stupid to give out loans to people who could not afford them and they deserve some losses, but they should not should the cost of stupid people’s homes.

Where It Is Going

I don’t think anyone knows exactly what is going to happen next. I watched live (on TV) as 24 protestors were arrested six blocks from my home for being in a park after hours. These people are not going away without a fight.

If they were smart and really wanted to impact the banks, they would close their accounts and move their money to credit unions or just start a bank of their own. Some are closing their accounts, but unless they act as a whole they are not going to make an impact.

I do expect that the “99%” will press for a unified voice in government. Just as the Tea Party holds a caucus, the Occupy movement will likely see more structure going forward. However, unlike the Tea Party, there are not a ton of millionaire supporters that are going to pay for the campaigns of its members.

I hope this group is able to establish a single voice and make progress toward a more logical tax system for both people and companies. I do not want to see such dramatic change that businesses are wiped out, but the excesses we see today while wealthy Americans and corporations pay such a disproportionate share of the taxes relative to their income needs to come to an end.

What Do You Think?

Do you support Occupy America? Are you part of the 99%? Do you think the 1% should be treated differently? Why? Why not? Please share your thoughts in the comments.

Occupying America is a post from: Narrow Bridge

Related posts:

1. America, We Have Health Care!

If you read the news today or listen to talk radio, you will most likely hear some mention of unemployment and how bad the economy is. I disagree, the economy is in great shape. You just need to look after yourself to ensure your personal economy stays on top.

Education

Education is the core to most people’s financial success. If you look at top CEOs today, almost every single one has a college degree. Many of them have master’s degrees. Most of them went to business school or have an MBA. This is not a coincidence.

If you want to keep your economy stable, you need an education and a degree that will lead to the future you want. I am thrilled that so many people want to be social workers, but a $60,000 master’s in social work from a private university will likely make you $25,000 per year. Is that warm fuzzy feeling worth it?

The same university offers an MBA for the same cost. That degree will leave you making double what a social work degree will make you.

History degrees, art degrees, English degrees, and other liberal arts do not have a bright future today. Unless you want to be a teacher or go to grad school, these degrees will help you land a job with good benefits at Starbucks. Make sure you know what you are getting into when you pick a major.

If you don’t believe me, this graph from the Department of Labor breaks down the numbers.

Savings – Emergency Fund

Even the strongest economies often hit hard times. The United States has had a Great Depression and a handful of recessions to keep us on aware of what can happen if you do not have strong momentum.

But, just like a strong economy, you can hit hard times. I know a whole lot of people from my former employer that were laid off after it was purchased by another company. People with law degrees, accounting and finance degrees, and MBAs were laid off just like everyone else.

While these people have better odds of finding a good job than someone with a high school diploma, they still have to pay the bills and support their families in until that happens.

If you are young and single, you need an emergency fund that can cover at minimum three months expenses to have as a backup for a rainy day. If you have a family to support, you should build an even bigger cushion to ensure you can make it through tough times.

Retirement and Investments

New businesses open everyday, and old businesses close everyday. Whether they were forced out by competitors or decided to close up shop to pursue other adventures, if they were run the right way, they have a good nest egg behind the operation.

You need a strong nest egg too. When you are ready to close up shop and take up a full time golf and sailing career, you need to have the cash in the bank to get you where you want to go.

I invest over 10% of each paycheck automatically into a combination of savings, investments, 401(k), and Roth IRA accounts. If you do that for the duration of your career, you should be in good shape when retirement comes around.

Insurance – Health, Life, and Everything Else

If the economy gets hit with a terrible event, the government and taxpayers have to foot the bill to keep things going. Unfortunately for you, the government and your neighbors will not hand you money to keep going when times get tough.

Make sure you have health, life, auto, homeowner, and any other insurance you need to protect yourself and your family from unforeseen catastrophe. As I recently learned, a $600 illness can cost thousands if you are not adequately covered.

Budget

If you are wondering how you are going to pay to keep your economy going strong, look no further than the trusted budget. If you keep your spending under control and focus on the end goal, you can find a balance between income and expenses that should keep your economy chugging along no matter what life brings you.

If you have never used a budget, take a look at Mint.com or Adaptu as great personal finance tracking tools that will automatically keep you on the right path.

Multiple Income Streams

Okay, okay. I know everyone’s situation is different. Maybe you don’t make enough money to support your lifestyle. While I strongly believe everyone has the ability to live below their means, many people live beyond what they can afford anyway.

You can be like me and try to turn hobbies into income and make multiple income streams. I know many stay at home moms that have built successful blogging businesses. I know full time workers that have a photography gig or weekend business. I even run a flash mob business when I am not working.

You can easily come up with a way to make more money. If you are struggling, I recommend Ramit Sethi’s Earn 1k course as a good place to start.

Don’t Forget to Have Fun

I know all of this might sound stressful and difficult, but if you make a list and knock things out one at a time, you will be all fixed up in no time.

Image by epicharmus.

Fixing Your Own Economy is a post from: Narrow Bridge

Related posts:

1. Investments in a Bad Economy
2. Why Layoffs Are Good For the Economy
3. It Doesn’t Take a Rapper to Save the Economy… Or Does It?

I have really good insurance. I work at a great company with great healthcare benefits. My monthly cost is only about $60. Even with that, things are not always as they seem.

A few weeks ago I got sick. Really sick. I had a fever over 101. I was coughing, sweating, freezing, vomiting, had a headache, and just felt like crap. After a couple of days of my symptoms only getting worse, I went to the doctor. I didn’t have a primary care doctor (I know, irresponsible of me), so I went to a local clinic. $107 after my insurance paid its part. The prescription was another $15.

The next evening (a Friday), my temperature was on the rise. When it broke 102, we called the doctor I saw the day before. She said I needed to go to the hospital. $481. There is also a charge of $17 for tests. A follow up doctor visit (I had passed my deductible by this point) cost $8.

It turned out I had a nasty virus. They were not sure what kind. But that virus cost me $628. Good thing I have a good job.

But here is what makes me livid. What did it really cost for me to be sick. I paid $628 and my insurance company paid $3362 (glad I have insurance). So apparently being sick cost a total of $3990.

BUT WAIT! DOES IT REALLY COST $3990?

The doctors and hospital billed my insurance company for $5650. Apparently it costs $1660 more than I cost to be sick? That can’t be right. Can it? Why would it cost an uninsured person $5650 to be sick but only cost me $3990 to be sick? I would like to think I got the ‘good looking person’ discount, but no matter how attractive I am, I know that is not the case.

The fact of the matter is that we take advantage of people who do not have the financial insight or means to take care of themselves. If someone who can’t afford insurance walks in with the same problem as me, they are charged thousands more just because they don’t have insurance. That is disgusting, wrong, and should be illegal.

I don’t know why we allow this sort of atrocity to continue in this country. We are allegedly the most developed and powerful nation in the world, yet we can’t even take care of our own sick people without sending them into bankruptcy unless they are privileged enough to have insurance.

To me, going to the doctor is a human right, not a privilege for the wealthy. I usually try to keep politics to my personal blog, but I know that when I vote in 2012 and every year after, I will always vote for the person that thinks every single American deserves top quality healthcare no matter what.

Photo by lydiashiningbrightly.

The Disgusting State of American Healthcare is a post from: Narrow Bridge

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1. American Express Starwood Rewards – My New Credit Card

It is no secret to Narrow Bridge readers that I am a fan of Warren Buffet. His investing strategies have helped him grow investments from family and friends in Omaha into the company with the seventh largest revenue in the United States. As the debate moves forward on dealing with United States debt, the second richest American has voiced strong opinions on how to fix the problem.

I have long been an advocate of social programs such as social security and universal healthcare. I enjoy driving on freshly paved highways and hate the two lane highway that should be at least double the size that I take to work every day. I enjoy the fresh air and clean water protected by the EPA. I like going to public firework shows on the fourth of July. I am glad impoverished Americans can access Medicaid and can visit a doctor when they are sick. I am thrilled that every young American can access a free education, though I wish many were better and that the education lasted through college.

Of course, many could be managed better. The wasteful spending at some organizations, like the military and IRS, could be fixed. If run more effectively, the military could have the same power and effectiveness at a lower cost. The IRS could require electronic filing and save millions, if not billions, in costs. The US Federal Reserve could stop printing paper dollar bills and replace them with coins, also saving billions.

Overall, I am happy with government programs. I enjoy taking advantage of them. I don’t mind paying for them.

Buffet wrote an op-ed in the New York Times this week accusing our legislators of coddling the super-rich. They are. He uses his own company as an example:

Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.

Does that not disgust you? The second wealthiest man in American followed the law to the letter. He paid his taxes, just as I paid mine. However, my effective tax rate was closer to Buffet’s staff than the man himself. Why do the 98% of Americans no revolt at the plutocracy in this country? The government has engineered a structure that protects and helps the wealthiest Americans keep money and power while encouraging the rest of us to finance our Middle Class lifestyles with debt.

Buffet does not get it either. He clearly attacks the ludicrous claims of the far right. I once had a personal discussion on this topic with a blindly conservative friend. He said that if taxes go up for the wealthy that they will not work as hard because they will take home less for earning more. First off, learn math beyond what Rush Limbaugh teaches you. (Hint, it does not add up) Second, that is the most ridiculous thing I have ever heard. Yes, if your income is $2,000,000 a year and the tax rate goes up on rich people, you will take home less if you earn the same $2,000,000 a year. However, my heart does not bleed for you.

The amazing thing about our graduated tax system is that they pay the exact same tax rate on the first $40,000 they make the same as I do. However, as you make incrementally more, you pay incrementally more on that additional income. If you are confused, here is a good explanation at Bargaineering. As you can see, people that make more money still make more money. Buffet goes on to explain how the tax rate does not scare rich people away from trying to make more money:

Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.

I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.

I will not argue that the current tax system is perfect. I also believe that $200,000 per year is not the right place to start a super-rich tax bracket. Again, I agree with Buffet. Increase taxes at $1 million. Have another bracket at $10 million. I promise you people making over $10 million a year will not starve. If you think that they will donate money to the government out of the goodness of their heart, you are mistaken. But if you think they will give up on making money and being rich because they pay a little more in taxes, you are an idiot.

Image by Ethan Bloch.

Buffet and the Great Tax Debate is a post from: Narrow Bridge

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2. Getting Ready for Tax Time: 5 Tax Forms You Need
3. Five Tax Forms You Need: Getting Ready for April

Welcome to the 321st edition of the Carnival of Personal finance. I had a lot of fun reading everyone’s submissions and added a few new folks to my reading list. I am excited to host this carnival for my first time. If you are new to Narrow Bridge Finance, be sure to check out some of my best posts and read about why you should listen to me.

This month I dealt with the single most bizarre experience of my life. I became friends with someone, started a company with him, and found out he was not who he claimed to be. It made me think about the millions of people who have been in similar situations. From Bernie Madoff to  Frank Abagnale, this week we are going to highlight some people who used finance for a very different purpose than the bloggers of today.

Image from Dreamworks film Catch Me if You Can

To begin, the con artist that makes fraud sound sexy. Frank Abangale Jr. was the subject of the popular film ‘Catch Me If You Can.” Based on the life of Abangle, Leonardo DiCaprio makes fraud look fun as he travels the world as an airline pilot, saves lives as a doctor, and eludes an FBI agent hot on his trail as he cashes fake checks and finds beautiful women.

Editor’s Picks:

Sustainable PF examines ways to make money online over four decades. Starting in the 1980s, SPF used innovative methods to create income streams. Some of them have died off and others are still applicable today.

The Financial Blogger thinks that debt is a good thing. How timely can an article be? As Fannie and Freddie are posting losses, the US Government is struggling with its own debt, and I am looking at buying a home, TFB takes a look at things from the other angle.

Mike, aka Oblivious Investor, reminds us that owning a bunch of mutual funds is not the same as diverse investing. Many mutual funds own the same stocks and some even own other mutual funds. Mike helps you dissect your portfolio to balance your investments.

Lindy at Minting Nickels made a few mistakes when she had her first baby. She shares her non-frugal moments in her post How We Didn’t Save Money with Our Babies.

Squirrelers has five easy steps to increase your savings. Sometimes it is good to get back to basics with personal finance.

Budgeting:

My blogging buddy Well Heeled has seven tips for buying an engagement ring at Costco. These are great tips when you are making such a big and important purchase.

Career:

Adam at Rabbit Funds continues a series on starting a home business. This post focuses on important accounting and marketing tasks that most bloggers and entrepreneurs can learn from.

Clint at Accumulating Money put together a list of different types of jobs for finance professionals. As a finance guy myself, I can attest to how important having a direction can be to your finance career.

Mike at Green Panda Tree House wants to help you make a plan to quit your job.

Control Your Cash reminds you that your time is worth something and you should give it a value. Do not give it away for free.

Bret at Hope to Prosper has the secret to success for working stiffs.

Your Life Their Life looks at George Costanza as a case study for how you can succeed at work.

Image via Wikipedia

Don’t forget the infamous Charles Ponzi. Yes, he is the guy Ponzi schemes are named after. Charles pioneered the genius pyramid marketing scheme that has cost so many people so much money. The Italian immigrant swindled people and governments by engaging in mail fraud and investment fraud.

Credit:

Jake at NerdWallet examines the different benefits of American Express cards. From Clear to Centurion, AmEx has a lot to offer, if you are willing to pay the fee.

Jeff from Good Financial Cents reminds you to avoid store credit cards. It is not worth it.

Janet at Credit, Eh thinks you should use income diversity as a insurance for your credit card payments.

Glen at Free From Broke found the best credit cards for college students.

Philip shares ten tips to stay out of credit card debt at Deliver Away Debt.

Debt:

Jeff at Sustainable Life Blog takes a look at what happened so far this year in his finances.

Cathy at Money Health Central has ideas for what to do after your debts are paid off.

Image from US Department of Justice

Bernie Madoff is a new edition to the list of fraudsters. Madoff admitted to operating the largest Ponzi Scheme in history. It is estimated that he cost investors $18 billion when his Manhattan investment firm went bust. He is currently serving a 150 year prison sentence. Sadly, many non-profits were dramatically impacted when Madoff’s house of cards collapsed.

Economy:

My University Money explains the implications of the rising Loonie compared to the US dollar and gives a brief FOREX lesson discussing why exchange rates vary.

Darwin from Darwin’s Money shares what the media did not regarding the debt ceiling vote.

Money Thinker has his own ideas for fixing the national debt.

Finance:

Money Beagle thinks having health insurance can be hazardous to your health. If you are considering a new addition to your family, this post has great insights.

Crystal shares her retirement checklist at Stupid Cents.

Image from US Department of Justice

Kenneth Lay is responsible for the largest corporate collapse from fraud in history. Lay lied to investors and cooked the books at Enron while being paid over $42 million per year to manage the company. The company with a $60 billion market cap with $100 billion annual revenue was exposed in October 2001 and now does not exist.

Frugality:

Kim at Blogging for Change noticed that her child’s school supplies were far more expensive than they needed to be, but most people just pay for convenience.

Free Money Finance takes a look at extreme couponing and wants to know your take.

Britney at TotallyMoney wonders if cost and expectation go hand in hand.

Hunter at Financially Consumed writes about caffeine addiction and how it impacts you, and your finances.

Glen at Parenting Family Money has 9 inexpensive ways to keep your kids entertained over summer vacation.

Jacob from My Personal Finance Journey has five great ways to reduce your car insurance.

Investing:

The Dividend Growth Investor looks at master limited partnerships and the implications of owning these investments.

The Div-Net takes a deep dive analysis into the high dividend yield of Kinder Morgan.

Intelligent Speculator things that Google might have a chance at social media after all. It is not going to happen automatically, but Google is taking steps in the right direction.

The Dividend Growth Stocks blog is on the never ending quest for the perfect dividend stock.

Matt the Dividend Monk will help you build a $150,000 portfolio by the time you are 30.

John at Stock Market Basics helps you discern the many gold ETFs you can purchase.

Ricky at Qwoter can help you decide on the best company for an IRA depending on your needs.

Growing Money has comments on CNBC’s recent list of 20 stocks about to pop.

Jim at the Retire Happy Blog has found the science of building a diversified investment plan.

John from Wallet Blog discusses the difference between money market funds and money market accounts.

Outlaw Finance gives tips on where to invest your money.

Image from ABC's Lost via Wikipedia

Okay, so this one was not a real guy, but I could not make a list of con artists without including James Ford, more commonly known as Sawyer. Sawyer taught the world about the “long con” on ABC’s series Lost. Sawyer also lived under the alias Jim LaFleur. Of course, Sawyer would not have been such a great con man if he had not learned from the man who stole his parent’s life savings.

Money Management:

Ricky at Qwoter discusses financial priorities. Learn about ideas ranging from the popular emergency fund to less known tips for building your own value.

Jen at Master the Art of Saving is taking an extreme couponing reality check. It is important to remember that behind the trendy “glamour” of feeding your family for twenty cents for four weeks that there are big costs. She also notes that guys (such as myself) may not appreciate your fifty boxes of tampons in the garage.

Anabelle at The Year of Shopping Detox wonders why so many financial experts and mean and yell-y. My personal opinion of Suze Orman is not so good, by the way.

Eric (good name!) at DollarVersity reminds us that bank account bonus offers are not always as good as advertised.

RJ at Gen Y Wealth thinks you do have enough willpower to make a difference in spending decisions. He also has strategies to make it easier on you.

MD at Studeneconomics explains why online banking is more popular than ever.

Canadian Finance Blog thinks it is time to start thinking like a wealthy person.

Jason from One Money Design asks the readers if they can live well on less than $40,000 per year.

Elizabeth reminds us to remain calm despite our volatile economic situation at Modern Gal.

Real Estate:

Nicole at Grumpy Rumblings shares her August mortgage update and the broken window hypothesis.

Sarah helps you find out how much your home is really worth at Money Under 30.

Saving:

Chris at Stumble Forward helps you set up a savings account for your child. This is an important step in your child’s financial education and future, so be sure to get them started young.

Mike at Cards Canada examines loyalty programs worth joining.

Ben at Money Smart Life has the best rental car deals for road trips.

Phil at PT Money, our great organizer for the upcoming financial bloggers conference, tells us how to save like a madman.

Other:

Boomer from Boomer & Echo is learning about caring for elderly parents and shares stories from difficult moments.

Junior at Consumer Boomer helps you decide whether funeral insurance is right for you.

Briana at Personal Dividends never travels without travel insurance. She lists of the major benefits of having your trip insured.

No Debt MBA helps you decide if admissions consulting is worth the cost.

Asking About Money interviewed No Debt MBA and had some interesting answers.

Next Week:

Next week the Carnival of Personal Finance will be hosted by Financial Uproar. You can submit your posts by visiting the Carnival of Personal Finance homepage.

Carnival of Personal Finance #321 – The Fraud Edition is a post from: Narrow Bridge

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This guy is smarter than the Speaker of the House John Boehner, House Majority Leader Eric Cantor, and anyone with ‘Tea Party’ included in their political beliefs. Seriously.

It Doesn’t Take a Rapper to Save the Economy… Or Does It? is a post from: Narrow Bridge

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House Representative Mike Coffman (R-CO) is my elected official in the House of Representatives. I recently asked you to write your congress representatives to support raising our debt ceiling for a variety of reasons. Here is my letter. Feel free to use part of it or all of it when emailing your Representative regarding this issue.

Mr. Coffman,

I am writing today regarding the current Washington debate over our national debt ceiling.

Like all off my friends and family, I am incredibly concerned by the childish behavior I have seen demonstrated by the Republican party regarding the debt ceiling. It appears that the party has become so obsessed with defeating Barack Obama that they have forgotten you were elected.

You were elected to make life better for American citizens.

Even Regan said that it would be irresponsible for congress to vote against raising the debt ceiling. I do not understand why the Republican party has become so hard line about protecting the top 2% from tax increases while the livelihoods of those 2% and the 98% of the rest of us hang in the balance.

I agree that the budget needs to be balanced, but it needs to be done so responsibly. A knee jerk reaction like defaulting on US debt obligations would cost at least $500 billion (just from lowering of US credit rating).

I know that you acted responsibly and helped the state of Colorado work through difficult situations as state treasurer. I believe that you, and at least 40-50 Republican House Representatives, are intelligent enough and understand the economy enough to protect us from irreparable harm.

Please vote to raise the debt ceiling today and put my fears, and the world’s fears, to rest.

Thank you,

Eric Rosenberg

Image from United States government website

Open Letter to Rep. Mike Coffman is a post from: Narrow Bridge

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The United States government is on the verge of collapse. You might not know it just by going out to the grocery store, restaurant, or work. People are going on as if nothing is happening, but if you know what is going on in Washington and understand economics, you know how close we are to disaster.

What is the Debt Ceiling?

The debt ceiling is the legislative approved maximum total debt the United States government is allowed to take on. This ceiling has been raised every year without any debate for decades. Republican hero Ronald Regan once famously wrote:

“Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and on the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.”

I am not a fan of Reganomics, but this is something he clearly understood.

What Happens if We Raise the Debt Ceiling?

Life goes on as usual. The government can continue to accrue new debts to pay for current expenses and liabilities.

The downside of new debt, of course, is that we have more debt to pay in the long run. The growing national deficit is a major issue that we have to deal with as a country. It will involve painful decisions.

Like many large corporations, the United States does need to utilize debt to continue to function. To lower the debt, we need to do one of three things.

1)      Raise revenues (taxes)

2)      Lower expenses

3)      Print money (inflation)

None of those options are good for Americans or the United States economy. However, we will be forced to utilize a combination of those methods to deal with the increasing debt. The politicians that vote for these changes will be unpopular, so politicians have avoided the looming topic for decades as the debt has grown.

What Happens if We Don’t Raise the Debt Ceiling?

First, the government will stop writing checks. Government workers will be effectively laid off. That is 1,909,000 people.

Social security, Medicare, and Medicaid would stop. Senior citizens and disabled Americans who rely on their monthly check would be left without income.

Debt payments would cease. The credit rating of the United States government would be lowered. National and international stock and debt markets would become unstable and crash. If you think the Greek Debt Crisis pushed the stock market down, just wait for the United States Debt Crisis.

This is not an overnight recovery. Just waiting one day too long (we are already too close) to raise the ceiling would lead to billions of dollars in increased debt costs for the United States government as interest rates increased. Our already fragile economy would come crashing down. Unemployment would rise and consumer confidence would fall.

These Assholes Are Playing Chicken with Our Livelihoods

I occasionally make a political statement on this site, but I usually leave most of that for my personal blog. I have a very strong, factually based opinion on this and I am not going to hold back.

These idiot Republican and Tea Party legislators are playing chicken with the United States and global economies. They hate Barack Obama so much that they are willing to cause irreparable harm to the economy and tens, if not hundreds, of millions of people.

They are acting like children. They are throwing a temper tantrum because Mom and Dad (aka the voters) did not side with them in the last Presidential election. If you want my support, the best way to do it is act responsibly in a way that benefits the majority of Americans. If you act like this, I am closer to using my Second Amendment right for revenge against you than voting for you. (I would never be violent and I hate guns, but I am trying to make a point)

Like most of my well educated friends with a business, law, or engineering background, I am better off today than the day Barack Obama was elected. My stock portfolio is up. I had a promotion and found a new and better job. I am looking at buying a home. Life is good. The Republicans are threatening all of that.

Call to Action

If you are a Democrat, Republican, or unaffiliated voter, you will be dramatically impacted if the debt ceiling is not raised by August 2^nd. Traditionally conservative organizations such as the United States Chamber of Commerce are lobbying House Representatives to step back from this dangerous path.

Join them. Write or call your congressman or congresswoman to talk some sense into them. This is not just politics, this is the future of the United States. This is too important to use as a political pawn. We cannot let this happen.

Simply too much is at stake.

Image by Nick J Webb.

What Is The Debt Ceiling and Why Does It Matter? is a post from: Narrow Bridge

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