Perhaps shocking to some folks, but even the great Benjamin Graham (the father of value investing and Warren Buffett's mentor) became an advocate of indexing as the best investment strategy (click here to listen to this Jack Bogle speech at about the 55 minute mark).

Apple Computer was in the news recently as their CEO Tim Cook took some heat while testifying in front of Congress about the US Federal Corporate Income Tax.  The controversy around Apple revolves around how it is that Apple's "effective tax rate" is roughly just 25% when the US Federal Corporate Income Tax Rate is supposed to be 35%.  What I find shocking, is that Apple is able to get away with claiming they pay an "effective tax rate" of 25% when it is actually closer...

     Janet Cowell, the State Treasurer of North Carolina has asked the state legislature for the authority to squander more of North Carolina Retirement System's Pension Fund money on so-called "Alternative Investments."  Cowell doesn't want just a little leeway, but wants to place a whooping 40% of the $80 Billion pension fund into these "Alternative Investments" or roughly $32 Billion (yes, that's Billion - with a capital B).     Cowell's request reminds me...

If you have a 401(k) or IRA or any investments at all, click here for a must-see video "The Retirement Gamble" from last night's FRONTLINE on PBS.  The moral of the story:  When it comes to investing, expenses are your enemy, and index funds are your friends.During the video, Jack Bogle, the founder of Vanguard and the inventor of the first low-cost index mutual fund, stated that over a lifetime many investors keep roughly one third (1/3) of their investment gains while Wall...

Generally, I think Wall Street bankers get paid too much overall, but this 6 minute video from OnlineMBA.com does convince me that it makes sense that their compensation structure be designed with bonuses being a large portion of their total compensation. Basically the video defends variable compensation, with which I completely agree.  The same website also has an interesting 1 minute video about the business of guns.

Last week, the North Carolina Retirement System (NCRS) announced investment returns as of December 31, 2012 for its $78 billion pension fund.  What the press release did NOT include was information about average pension fund returns.  The table below shows just how terribly the North Carolina Retirement System pension fund is managed.                                           ...

In North Carolina, if you've been laid off and received severance pay, you likely do not need to pay North Carolina State Income Tax on the severance amount up to $35,000.  The way it works is you enter your severance as a deduction on line 43 on page 3 of your Form D-400.  Check out the North Carolina Department of Revenue statement on the subject by clicking here.Read more »

You can get a US Federal Tax Credit up to $500 if you purchased an energy efficient central air conditioning unit, furnace, or water heater.  You can find the details for what qualifies by clicking here, but here is a quick summary:Central Air Conditioning or Heat Pump Systems - $300 for systems with a SEER rating of at least 16 for split systems or 14 for package systems.Furnaces - $150 for systems with AFUE of 95 or higher.Water Heater - $300 for systems with an energy factor of at least...

It's that time of year again when we all start calculating out our tax return here in the US.  I've discovered there is some confusion about the AMT.  AMT stands for "Alternative Minimum Tax" but that name can confuse folks.  AMT would be less confusing if it stood for "Additional Mandatory Tax."AMT is NOT an "alternative" tax in that it is NOT an "option."  The AMT is an "additional" tax added to your federal tax for some tax payers that earn more than a...

The Triangle Business Journal reports "Fees Paid by Pension Fund Soar 28%" to $318 million last year. (see page 6 of the 2/1/2013 issue).  I hate to say it, but I told you so. Yep, we poor North Carolinian's, despite having several of the top MBA programs in the nation located in our state, and a huge financial center in Charlotte packed with investment talent, we can't seem to figure out how to manage our own pension fund investments.  Instead, we outsource management of the...