What went wrong at MF Global?: I had never heard of MF Global, the derivatives broker that filed for bankruptcy over the past weekend before but here is a very good explanation of what went wrong with risk management at the firm.

Replacing bonds with dividend payers: With bond yields much lower than the dividend yield on many stocks, many investors are wondering whether they should replace bonds with dividend payers. Responding to a reader question, Money magazine’s Walter Updegrave explains why it is dangerous to think dividend payers and bonds are interchangeable.

Great guy but broke: The New York Jets’ backup quarterback Mark Brunell becomes another sportsman who went broke. This news article says that Mr. Brunell invested millions in investments in businesses that later went bankrupt. Just like the rest of us, Mr. Brunell would have been much better off if he had paid some attention to investing sensibly.

New ownership for Canadian MoneySaver: The Globe’s Rob Carrick reported that Canadian MoneySaver has a surprising new owner. In his first column in the magazine, the new owner highlights some of the lessons learned over a 25 year investing career.

Around the blogs

Canadian Couch Potato explains the potential risks leveraged ETFs pose to the stability of financial markets.

The aforementioned Mark Burnell would appreciate Michael James’s suggestion that successful investing involves avoiding serious mistakes, not making brilliant moves.

Money Smarts Blog wonders why more retirees don’t buy annuities.

If you win this week’s LottoMax, you might be interested in The Blunt Bean Counter’s advice on dealing with financial windfalls.

Preet has some fun with the periodic table of asset class returns and demonstrates why diversified portfolios work the best (at least for most of us).

Jim Yih sketched out how you can develop a retirement plan in three easy steps.

This article has 11 comments

  1. Typo in the 2nd paragraph, last sentence: “dividend payers and stocks are interchangeable” should probably be “dividend payers and bonds”.

  2. Thanks for the link Ram – have a great weekend!

  3. @Kevin: Thanks for pointing out the error. I’ve corrected it.

    @Preet: You have a great weekend too!

  4. It is true that many investors learn through their mistakes, not well thought out plans without error. I wonder, my friend, what has been your largest lesson learned through an investment error?

  5. Hey Ram – looking forward to reading about MF Capital. I never heard of them as well.

    Interestingly enough, I’ve got a MoneySaver subscription on my “to do” list. I better get that done, before the new guy cranks up the price.

    Which subscription do you recommend? Magazine only or magazine + online?

  6. The Blunt Bean Counter

    CC, thanks for the link. I have a feeling we will be hearing about several MF Global’s going down the tubes in the next while. The world and its finances are pretty messed up.

  7. I guess guys like Brunell are so used to succeeding wildly at everything they do that they expect to succeed as businessmen as well. Thanks for the mention.

  8. @Doctor Stock: My biggest lesson was diversification. In the early 2000s, my portfolio held mostly tech stocks, I worked in a tech company and most of my net worth was in vested employee stock options. It did not end well!

  9. Pingback: Best of Blogs – Have you been to Whitehorse? | Retire Happy Blog

  10. Interesting note about the MoneySaver guy. Is this like the reformed thief becoming the security consultant?