Saturday, February 25, 2006

The best money periodical

This blog is generally about money-related resources -- earning, saving, investing, markets, and things worth spending money on, including good books, etc. When I see something I like, I'll recommend it and give a link.

The honor of the first post goes to the best all-around periodical I know related to money and investing. On radio talk shows, I keep hearing people ask how to learn about these topics. There are many contenders, including the Wall Street Journal, Fortune, etc. But nothing I know beats Money Magazine.

I have subscribed for years. They cover the subject from all angles. Yes, there are stock picks and mutual fund rankings, but what sets them apart is their other coverage. For instance, a recent issue carried the most lucid and informative article about the Social Security mess that I've seen. They were also able to explain the new Medicare drug benefit understandably.

I particularly appreciate the articles about investing psychology, where they explain how the human brain is wired to do precisely the wrong thing in investments, and how to combat that destructive tendency.

How much can you withdraw from your retirement nest egg each year to make sure your money lasts? Most people, and even financial counselors, guess too high. Money has pointed to studies that show if you withdraw more than 4% a year, your risk of running out is sharply increased. All you need is a market decline like the 70s occurring shortly after you retire, and you are toast.

Anyway, you should definitely subscribe to Money magazine.