Stocks for the Long Run? Really?

Most of us have heard that stocks have outperformed bonds in the long run. But what is the definition of long run? So far this century, have stocks really outperformed? To answer that question, I decided to look at how three different asset classes have performed in the new millennium. I examined the performance of stocks vs. bonds from Dec. 31, 1999 through June 30, 2015. I compared the total returns of U.S. stocks, international stocks and investment grade U.S. …

CFPB: Reverse Mortgage Ads Can Confuse More Than Inform

Advertisements touting reverse mortgages often leave older consumers confused about the loan terms and unaware of the risks, according to a new report from the Consumer Financial Protection Bureau. “Perhaps most concerning of all, the ads left the consumers believing that if they purchase a reverse mortgage loan, they will be able to rest assured that they can live in their homes and enjoy financial security for the rest of their lives,” CFPB Director Richard Cordray said in a teleconference. …

Schwab Starts No-Fee Investment Service

The investing world has been all atwitter — or a tweeter — over the coming of Charles Schwab’s Schwab Intelligent Portfolios, which opened to the public today. The new service from the San Francisco-based money manager is the latest in the growing world of “robo-advisers,” or investment advisory solutions that rely on computer algorithms to build, monitor and rebalance portfolios based on your stated goals, time horizon and risk tolerance. Online competitors include Betterment, Wealthfront, SigFig and others, which have …

Are Medical Credit Cards Unhealthy for Your Finances?

You need some expensive medical care yet don’t have the insurance or money to pay for it. Should you use a medical credit card that’s pitched at some doctors’ offices? A new report by the nonprofit Consumer Action warns that some of these cards can be unhealthy for your finances. They usually offer a zero percent introductory rate, though after that period, card terms can vary greatly. The problem is that these terms often are difficult to uncover. So patients …

Your Most Embarrassing Number, and It’s Not Weight

Which number is your most embarrassing –  age, weight or credit-card debt? Surprise, it’s debt, according to a poll by the National Foundation for Credit Counseling. Thirty-seven percent of nearly 2,200 respondents say they would be the most red-faced to admit their credit-card balances. Credit scores came in second on the shame scale, with 30 percent saying they would not be comfortable disclosing their number. Consumers have fewer qualms about divulging weight and bank balances, according to the foundation. (Twelve …

Rent to Own? It Could Cost You Big Time

As the holiday shopping season gets under way, you may be tempted to buy that fancy flat-screen TV, a laptop with the latest technologies or a stylish sofa to replace the one your cat uses as a scratching post. (I’m talking to you, Indy). To pay for that big-ticket item, you may be tempted by rent-to-own deals in department stores that now offer them, like Kmart and Sears, according to a Bloomberg report. , rent-to-own deals usually take advantage of …