FREE 30-Day Trial Web Membership

July marks SMI's 20th anniversary! Don't worry. We're not expecting a gift. Instead we have one for you! Right now, we're offering a 30-day free trial web membership — just for the asking... but the offer ends on July 31st!

Why try SMI? Well, how about the fact that our core investing strategy, Fund Upgrading, has beaten the overall market in 10 of the past 11 years! And our simplified Just-the-Basics strategy has done pretty well, too!

During the 11-year period from 1999-2009, U.S. stocks gained a total of 21.5% (as measured by the Wilshire 5000). During that same time, Just-the-Basics returned 39.3% while Upgrading gained 141.9%.

Let's put Upgrading's performance in dollar terms. If you had invested $25,000 in the overall market at the beginning of 1999, it would have grown to $30,372. But if the same money had been invested according to SMI's Upgrading strategy, it would have grown to $60,532 — an end result almost twice that earned from investing in the overall market!

What else do you get with an SMI Web Membership?

• Our Fund Performance Rankings report — the latest data on the performance of more than 1,500 mutual funds — is updated online every month.

• SMI's Retirement Plan Fund Tracker (shown at right) can generate a custom report that tracks the specific funds available in your retirement plan, so you can know which funds to choose and when. (If you have money in an employer-sponsored retirement plan, this feature alone makes our 30-day trial well worth checking out!)
• Our Bear Alert Indicator reliably distinguishes between a selloff that's within the bounds of normal bull-market activity and one that's likely to turn into a full-fledged bear market. (It's been accurate 10 out of the 11 times it has sounded.)

This special anniversary offer is only good through July 31st, so sign up today!

Posted by Matthew at 4:20 PM | TrackBack
Category(s): SMI General Announcements
Tag(s): free web membership

Email this post

Winner #19 in SMI's 20th Anniversary Referral Contest

Congratulations to Geneva Williams of Opelika, Alabama. Geneva is today's winners in our 20th Anniversary Referral Contest — she will receive a FREE one-year SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter a bunch).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations Geneva and thanks again for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 8:06 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Is pet insurance worth it?

I'm torn. I can't decide if my love for our dog outweighs my distaste for feeling duped into buying yet another kind of insurance: pet insurance. Yes, it's real with actual revenue numbers to back it up. Opinions vary regarding its merits: this piece acknowledges the value, while this piece does not. Then there's this information about calculating the worth of your pet.

If you ask me, it's impossible to put a price on a face like Gertie's. But I think I'm in the "factor it into your budget" camp. In other words, instead of paying premiums to a pet insurance company, open a pet savings account and "pay yourself" instead. If we put money aside now, not only will it be there if we need it but we'll get the benefit of compounding interest.

But that's only half the story, the money-saving, budget-conscience half.

Isn't there a stewardship issue here? Don't think so? Maybe this piece will change your mind. It willl certainly incense the hard core pets-aren't-people-they're-possessions crowd. Even a big-time pet lover like myself was taken back. Listen to this:

APPMA reports that 42% of dogs now sleep in the same bed as their owners. I'm not judging anyone... yet.

Half of all dog owners say they consider their pet's comfort when buying a car. I barely consider my kids' comfort.

With annual growth nearing 50%, the pooper scooper industry is now experiencing a lot of consolidation...There's a "pooper scooper industry"?

I'm not going to say that some of these crazy things people do for their pets are morally or even financially wrong because I don't know their heart or their giving. But it's hard not to have questions when you learn that Fido could be put on a cocktail of Slentrol and Reconcile; one for the unwanted pounds he put on while being depressed and the other for the depression from all the canine separation anxiety. My question in particular: Why medicate when he could just have liposuction and go everywhere with you in your canine-cozy Caddy? ;-)

Is it just me or is there a financial stewardship issue banging around in here somewhere? I think so, or at least there certainly can be without proper balance. You see, I want my giving to reflect how much I love the God and love other people. So it's more about my love for Him and less about my lack of love for Gertie.

Besides, when pet cloning comes down in price, Gertie will know how much we love her for the rest of her lives.

(This piece originally appeared in a July 2007 blog post (membership required) of The Sound Mind Investing Weblog.)

Posted by Matthew at 2:30 PM | TrackBack
Category(s): Family Finances, Giving and Stewardship
Tag(s): budget, family finances, insurance, money saving tips, savings strategies

Email this post

Winner #18 in SMI's 20th Anniversary Referral Contest

Congratulations to Dan Kilde of Chandler, Arizona. Dan is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations, Dan, on winning, and thanks for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 9:50 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

A review of Swaptree.com

Last summer, we wrote about Swaptree, a website that allows you to list and trade books, music, DVDs, and video games for free (and soon you'll able to trade Blu-ray discs and audio books). Since then, I've had a chance to use it in real life.

Here's how it works in general. Lots of individuals create lists of items they want, as well as items they have to trade. For the most part, you're saying that you're willing to trade any item on your "have" list for any item on your "want" list. (You always have the opportunity to reject a trade, but if you do this too often, Swaptree will evidently get cranky.) This is important, because in most cases Swaptree arranges deals among three parties, rather than two. In other words, you're sending an item to person A while getting an item from person B.

Here's the detailed version of how this works:

After you sign up for a free account, you are prompted to list items you have to trade and those you'd like to have. Listing items you have is quite easy. You either search for it or, better yet, simply enter in the UPC or ISBN in the "Have" list box and click "Add". From there, you select the item's condition and give a description if you'd like, then submit. Very quick and easy.

To add items to your Want List, type in the name of the item in the search box, then click the "Want It" link when it pops up. It's really that easy.

Next, you can view potential trades by clicking on your "Want List" and then sort the selections by "View Only Get Now Items." If there are any trades available to you, they will show up here. Next you can initiate a trade, assuming you are okay with the exchange. But not all items are equal. You may not want to trade a popular movie for an old paperback. But if you are good with the terms, you can initiate the trade and wait for the other party to accept (they are given roughly 2 days). If it's accepted, you'll get an email (or you can check back on the status by clicking the "My Trades").

Assuming it's accepted, you have a couple days to mail the item. Swaptree will give you the person's mailing address. You can either have Swaptree calculate and print the postage/mailing label for you right then (you'll need a credit card to pay for the postage if you select this option and they charge a small fee for this service - but it's extremely convenient and the prices are quite reasonable), or you can calculate your own postage.

After you mail it, you can "Contact the user" to notify them of your ship date and/or ask them questions/make comments. Once you've received your item, you can come back to "Rate the User". This rating might make a difference with whom you trade in the future. Since other users also likely take notice, it's advisable to solicit positive feedback if they haven't already rated you.

And that's Swaptree in a nutshell. We recently moved and came across some old movies and video games that I had intended to sell on eBay. But since I didn't want to hassle with auctions, and there were some DVDs we wanted, I thought I'd give Swaptree a try. And it works as advertised. I'm notified when someone initiates a trade and I check back once a week to see if there any available trades I may have missed or if I want to add some items to our Want List. So far, I've made 4 trades (traded movies for movies and traded video games for movies) and haven't had any issues. The only fees I've paid were the shipping costs. Again, Swaptree makes a small profit when you buy and print postage but you don't have to use their postage generator.

If there's a downside to Swaptree, it's that pending the size of your Want and Have Lists, a trade could take a while. So if you're in a rush, this probably isn't your best option. But it will likely be on my pre-eBay checklist if there's an book, movie, CD, or video game I'm interested in getting. And it sure beats paying retail because as is often the case, patience pays dividends for the frugal.

UPDATE: Swaptree has acquired Swap.com. Besides an eventual name change and a bigger user base, the changes brought about by this acquisition will take some time to manifest. In the meantime, it's free trading as usual.

Posted by Matthew at 3:13 PM | TrackBack
Category(s): Family Finances
Tag(s): budget, debt, family finances, money saving tips

Email this post

Winner #17 in SMI's 20th Anniversary Referral Contest

Congratulations to Chris Bajwa of Bethesda, Maryland. Chris is today's winners in our 20th Anniversary Referral Contest — he will receive a FREE one-year SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter a bunch).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations Chris and thanks again for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 8:28 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winner #16 of SMI's 20th Anniversary Referral Contest

Congratulations to Jim Mcgurl of Poughkeepsie, New York. Jim is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations, Jim, on winning, and thanks for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 10:54 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winners #12, #13, #14, and #15 of SMI's 20th Anniversary Referral Contest

Congratulations to Eric Thomsen of Beatrice, Nebraska, J P Welch of Richmond, Virginia, James Yorio of Martinez, Georgia, and Brenda Anderson of Cape Elizabeth, Maine. They are today's winners in our 20th Anniversary Referral Contest — they will receive a FREE one-year SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations to today's winners, and thanks again for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 9:39 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Just posted: August issue of Sound Mind Investing!

No matter what may be going on in stock market on any given day, a long-term financial plan that focuses on eliminating debt, building savings, and diversifying one's investments will eventually pay off!

The new August issue of the Sound Mind Investing newsletter — just posted online — will encourage you in those pursuits.

And, of course, we've included a little bit of free-access content for those who aren't yet subscribers.

For example: you can read this article on how to juice the yields of any savings you might not need for a least a couple of years (e.g., money set aside for a major purchase or an anniversary trip).

Also in the August issue:

• How — and where — to get a your credit score (lenders, landlords, and employers may be looking your score, so you need to know what it is);
• Two investing techniques that can help you buy at better prices and protect your profits;
• A wrap-up of recent performance for our popular Fund Upgrading strategy.

Our August cover story focuses on this question: "How should you respond to what seems be the beginnings of a bear market?" We walk you through an objective process that will help you make a "sound mind" decision about your investing strategy.

Not yet an SMI print subscriber or web member? Check us out free for 30 days online!

Posted by Joseph at 2:20 PM | TrackBack
Category(s): SMI General Announcements
Tag(s): bear market alert, new issue

Email this post

'Unusual uncertainty'? Par for the course

Federal Reserve chief Ben Bernanke rattled markets and raised eyebrows yesterday when he told the Senate Finance Committee the outlook for the economy is "unusually uncertain."

Of course, economic uncertainty is nothing new — and therefore not all that unusual. But present-day uncertainty tends to be very sharp in our minds while previous times of uncertainty have faded in our memories.

Last week, I spoke with radio host Bob Crittenden about the certainty of uncertainty on "The Meeting House," a program airing on Alabama's Faith Radio.

You can hear that segment below (14 min.) — or download an mp3 (Windows users: right click, then "save link as").

Posted by Joseph at 9:50 AM | TrackBack
Category(s): Current Market Events, Economy
Tag(s): economy

Email this post

Winner #11 of SMI's 20th Anniversary Referral Contest

Congratulations to Julia Santy of San Luis Obispo, California. Julia is today's winner in our 20th Anniversary Referral Contest — she gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations, Julia, on winning, and thanks for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 8:24 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winner #10 of SMI's 20th Anniversary Referral Contest

Congratulations to Stephen Mccormick of Clarksville, Tennessee. Stephen is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations, Stephen, on winning, and thanks for spreading the word of what we do here at Sound Mind Investing.

Posted by Matthew at 9:02 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

An "easy" way to reduce your mortgage

Wanna get out of debt? Start by looking at your biggest expenses and find ways to reduce or eliminate them. For many of us, that biggest expense is our mortgage.

But not for 45-year-old Jay Shafer of Sebastopol, California. Why? Cause Jay has taken downsizing to a whole other level. Jay lives in an 89-square-foot house he designed and named "Tumbleweed." Jay, a former grocery store clerk, now designs these houses for a living. And not only has his mortgage disappeared, his utilities are now under $100 a year. Here's his story:

That said, I wouldn't go near this lifestyle till we're empty nesters because of the following equation:

Posted by Matthew at 10:36 AM | TrackBack
Category(s): Family Finances
Tag(s): debt, family finances, mortgage

Email this post

Winner #9 of SMI's 20th Anniversary Referral Contest

Congratulations to Bill Feath of Plano, Texas. Bill is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

Furthermore, even if you don't win one of the 20 free memberships being given away, you can still benefit from these referrals. For each friend who becomes a subscriber or web member and lists you as their referrer, you'll get two free months of SMI added to your active print subscription or web membership! (Offer only applies to current SMI web members or print subscribers.) And there's no limit to the number of free months you can get this way.

So congratulations, Bill, on winning, and thanks for spreading the word of what we do here at
Sound Mind Investing.

Posted by Matthew at 8:22 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Thinking long-term when the market is wild

"So how should one manage money in an era of unpredictability and volatility?" asks a story on the front page of today's "Money" section in USA Today.

The Dow Jones industrials' 261-point plunge Friday sparked by a sharp drop in consumer sentiment in July highlights that gloominess persists....

In recent weeks, a spate of economic reports have come in weaker than expected, fueling double-dip fears. In July, readings on manufacturing, retail sales, factory orders, employment, auto and home sales came in light. Last Wednesday, minutes of the Federal Reserve's June meeting indicated it expects growth to slow in the second half, prompting the central bank to lower its 2010 growth outlook to as low as 3%.

In the words of former Fed chief Alan Greenspan, the economy has hit an "invisible wall."

Whew! How should investors respond?

On a recent Faith Meeting House program on Alabama's Faith Radio, SMI assistant editor Joseph Slife (right) talked with host Bob Crittenden about the maintaining a long-term perspective when the short-term is unsettling.

Use the audio player below to listen (16 min.) — or download an mp3 (Windows users: right click, then "save link as").

Posted by Matthew at 1:50 PM | TrackBack
Category(s): SMI General Announcements
Tag(s): investing principles, market volatility

Email this post

Winners #6, #7 and #8 of SMI's 20th Anniversary Referral Contest

Congratulations to Joe and Ruthie Scheidel of Berwyn, Pennsylvania, Dave Neufeld of Olathe, Kansas, and Larry Fryling of Hayward, California. They are all winners in our 20th Anniversary Referral Contest and will get a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20(!) one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!)

And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times — so please do!).

So again, congratulations to Joe and Ruthie, Dave, and Larry. Thanks for spreading the word about Sound Mind Investing!

Posted by Matthew at 9:35 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Interview with Mint.com founder

You may have heard us mention Mint.com a time or two around here. For the uninitiated, Mint is a free, web-based money management tool. Founder Aaron Patzer launched Mint in 2007. It quickly rose to the top of web-based financial tools and two years later, he sold it to Intuit (maker of Quicken/Quickbooks) for $170 million.

While most of the beefs I had in the SMI review I wrote in 2008 (subscribers' link) have been addressed, I wanted to ask about a couple that hadn't:

• An envelope budgeting option, and
• The possibility of a comprehensive part standalone product, part web-based product, and part mobile product all rolled into one.

I was able to ask Aaron Patzer (who still heads Mint, though now as part of Quicken) about these two features during a live webcast he did yesterday. If you're interested in how he answered, fast forward to the 13:16 and 28:00 marks, respectively.

Posted by Matthew at 11:35 AM | TrackBack
Category(s): Family Finances
Tag(s): budget, money saving tips

Email this post

Winner #5 of SMI's 20th Anniversary Referral Contest

Congratulations to Carolyn Fasold of Monument, Colorado. Carolyn is today's winner in our 20th Anniversary Referral Contest — she gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

So congratulations, Carolyn, on winning, and thanks for spreading the word of what we do here at Sound Mind Investing.

Posted by Matthew at 8:37 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winner #4 of SMI's 20th Anniversary Referral Contest

Congratulations to William Beichley of Westminster, Colorado. William is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

So congratulations, William, on winning, and thanks for spreading the word of what we do here at Sound Mind Investing.

Posted by Matthew at 8:53 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Big picture finances

Back in April I was thumbing through Consumer Reports' annual auto issue when I came across an article entitled, "Best Values: Small Cars and Family Cars Provide the Most Bank for Your Buck." No real surprise there, but always looking to reassure my value-seeking sensibilities, I continued on to read about road-test scores, predicted reliability ratings, and five-year owner-cost estimates — which is when it got really interesting.

On the next page was a list of 60+ cars with various data points (here's a similar article). The most compelling data to me was called "cost per mile." I quickly scanned till I found our two-year-old Honda Odyssey (which I LOVE and have NO problems whatsoever saying as much). Cost? $.71/mile. I remember thinking, "Man that's high." But then I went on with life and didn't give it too much extra thought.

The significance of this expenditure didn't dawn on me till the other day when we were carpooling with some folks to an out-of-town event in Frankfort, Kentucky. From where I live in Louisville, that's about 50 miles — i.e. $35.50...one way.

Yes, Consumer Reports' cost-per-mile factors in gas, maintenance, depreciation, insurance premiums, even sales tax. And it's based only on a five-year ownership. But for someone who hems and haws over spending $.99 on an iPhone app, it occurred to me that thinking about cost-per-mile could be revolutionary.

For instance, I often hop in the Odyssey (yeah, I could use our other car, but like I said, I'm the Minivan Man) and drive two miles up the road to the quickie mart for a Diet Coke. I now realize this is costing me $3.78/soda rather than the mere $.94 that I was rationalizing.

So I'm now thinking in terms of MPM (money per mile) rather than MPG (miles per gallon). Where we live, a trip to the grocery is not seven miles away, it's $4.97 away. And another $4.97 if I want to come back.

Okay, okay, I know — it's not technically "costing" me this at the time I'm driving. But it's roughly "equating" to this over the first five years. And yes, Consumer Reports is making some assumptions, so it's not 100% precise (Edmunds.com's True Cost to Own calculated the ownership operation to be $.58/mile).

So why bring this up? Because you and I often lose site of the big picture when we think about our finances.

We fall into the trap of "the-more-you-buy-the-more-you-save" sales (an oxymoron if I've ever heard of one — the more you buy the more you spend!). We hold on to a falling fund with a lot of our assets in it just so we don't get hit with a $50 early redemption fee. Or worst of all, we're stingy with our tithing on earth, even though we're promised eternal rewards in heaven. We would do better by keeping the big picture in mind.

So the next time your debating whether to buy a shirt that you only "kinda like" but it's 95% off (this is me nearly every time I go to Old Navy), or to drive an extra three miles out of our way to save $.02 on a gallon of gas, maybe you should stop and ask some questions:

• "Do I really need this?"
• "Can it wait?"
• "Is it part of my long-term plan?"
• "Am I being penny wise, dollar dumb?"

And most importantly:

• "Am I being a good steward of what's been entrusted to me by storing up treasures in heaven?"

Posted by Matthew at 12:40 PM | TrackBack
Category(s): Family Finances, Investing Principles

Email this post

Winner #3 of SMI's 20th Anniversary Referral Contest

Congratulations to Sue Rapp of Springfield, Ohio! Sue is today's winner in our 20th Anniversary Referral Contest — she gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

So congratulations, Sue, on winning, and thanks for spreading the word of what we do here at Sound Mind Investing.

Posted by Matthew at 8:34 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winner #2 of SMI's 20th Anniversary Referral Contest

Congratulations to Steve Sarrett of Denison, Texas! Steve is today's winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

So congratulations, Steve, on winning, and thanks for spreading the word of what we do here at Sound Mind Investing.

Posted by Matthew at 8:25 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Winner #1 of SMI's 20th Anniversary Referral Contest

Congratulations to Dale Wayman of Lynden, Washington! Dale is the first winner in our 20th Anniversary Referral Contest — he gets a one-year FREE SMI web membership!

Not familiar with the contest? We're giving away 20 (well, now 19) one-year web memberships. Simply fill out the referral form and we'll send each person you recommend a single email with information about SMI.

For each friend you recommend, you'll be entered into a drawing for a FREE One-Year Web Membership — a $119 value! (If you're already a Web member, we'll extend your Web membership 12 additional months if you win!) And while you can win only once, there's no limit to the number of referrals/entries you send us (in other words, you can enter lots of times).

So thanks, Dale, for helping spread the word of what we do here. And congrats again on winning a free year of Sound Mind Investing!

Posted by Matthew at 9:19 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): contest winner

Email this post

Bear Alert triggered

At Sound Mind Investing, we don't try to predict anything or time the market ("Put your money in now!" "Take your money out now!). Instead, we take a long-term, "steady plodding" (Proverbs 21:5) approach to investing.

Still, we realize some readers are helped by having a reliable indicator of the overall market trend so they can make portfolio adjustments consistent with their long-term plan.

Several years ago, we developed the Bear Alert Indicator, a tool that helps our readers know the difference between a "routine" market correction and what is likely to be a deeper downturn.

The Alert triggered last Friday for the first time since January 2008. Yes, the market has rallied since then, but that's not unusual. Often the bear takes awhile to manifest fully.

SMI's Bear Alert isn't a perfect indicator (no market indicator is perfect). But the methodology of the Bear Alert has been accurate at spotting a bear market 10 out of the last 11 times it has sounded.

The Bear Alert is just one of many value-added benefits available to you if you become an SMI web member — and right now, as we celebrate SMI's 20th Anniversary, you can try a web membership for 30 days free!

Others benefits of being an SMI web member include:

• SMI's Retirement Plan Fund Tracker (shown at right) — it can generate a custom report that tracks the specific funds available in your retirement plan, so you can know which funds to choose and when.
• Our Fund Performance Rankings report — the latest data on the performance of more than 1,500 mutual funds (updated online every month).
• Access to our market-beating investing strategy called Upgrading — it's beaten the overall market in 10 of the past 11 years!

This special anniversary offer is good only during July, so don't procrastinate. Take advantage today!

Posted by Joseph at 11:00 AM | TrackBack
Category(s): SMI General Announcements
Tag(s): bear market alert

Email this post

Multiple savings accounts — follow-up

The New York Times' Bucks blog offers good follow-up info on a topic we discussed in the June issue of SMI (subscribers' link): using multiple savings accounts as an aid to reach specific savings goals.

From Bucks' writer Jennifer Saranow Schultz:

A growing number of banks are offering features intended to help you allocate various savings accounts to specific goals.

As of [July 1], FNBO Direct customers no longer have to fill out complete applications to open new savings accounts. Instead, FNBO Direct fills out most of the applications for them. The new feature is aimed at making it easier for customers to open multiple savings accounts, each of which customers can name for a specific savings goal and all of which customers can track online with the same user name and password....

Since last year, Ally Bank has also had a similar offering, including the ability for customers to quickly set up multiple savings accounts, "nickname" them and see them all in one place online.

A spokeswoman for ING Direct, which has long offered such features, said 10 percent of the bank's customers had multiple savings accounts, with the top five nicknames (or savings goals) being "savings," "vacation," "emergency fund/rainy day," "house" and "taxes."...

Many credit unions also offer similar features as do other banks, including Capital One and Bank of America.

As we noted in our June article:

Having a series of dedicated savings accounts creates a structure that will help you follow through on your savings goals, especially when combined with automatic transfers from your checking account.

Goals can be a powerful driver of behavior, and being able to see — at a glance — how much is in each of your accumulation accounts (as well as in your emergency fund) lets you know exactly where you stand in relation to your various savings goals. As you see your balances rise, you'll be encouraged to keep moving forward.

For Ally customers, step-by-step instructions for setting up multiple accounts are here. Details for ING customers are here.

Below, Bob Lotich of ChristianPF.com explains how he uses ING's multiple-savings-accounts feature, which he calls a "virtual envelope budgeting system."

Posted by Joseph at 11:20 AM | TrackBack
Category(s): Family Finances
Tag(s): savings strategies

Email this post

20th Anniversary special: Free 30-day trial Web Membership!

July marks SMI's 20th anniversary! Don't worry. We're not expecting a gift. Instead we have one for you! Right now, we're offering a 30-day free trial web membership — just for the asking.

Why try SMI? Well, how about the fact that our core investing strategy, Fund Upgrading, has beaten the overall market in 10 of the past 11 years! And our simplified Just-the-Basics strategy has done pretty well, too!

During the 11-year period from 1999-2009, U.S. stocks gained a total of 21.5% (as measured by the Wilshire 5000). During that same time, Just-the-Basics returned 39.3% while Upgrading gained 141.9%.

Let's put Upgrading's performance in dollar terms. If you had invested $25,000 in the overall market at the beginning of 1999, it would have grown to $30,372. But if the same money had been invested according to SMI's Upgrading strategy, it would have grown to $60,532 — an end result almost twice that earned from investing in the overall market!

What else do you get with an SMI Web Membership?

• Our Fund Performance Rankings report — the latest data on the performance of more than 1,500 mutual funds — is updated online every month.

• SMI's Retirement Plan Fund Tracker (shown at right) can generate a custom report that tracks the specific funds available in your retirement plan, so you can know which funds to choose and when. (If you have money in an employer-sponsored retirement plan, this feature alone makes our 30-day trial well worth checking out!)
• Our Bear Alert Indicator reliably distinguishes between a selloff that's within the bounds of normal bull-market activity and one that's likely to turn into a full-fledged bear market. (It's been accurate 10 out of the 11 times it has sounded.)

This special anniversary offer is good only during the month of July, so take advantage today!

Posted by Joseph at 2:05 PM | TrackBack
Category(s): SMI General Announcements
Tag(s): free web membership, special offer

Email this post