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January, 2011


Both amateur and professional equity investors can benefit from tools that help one weed through the scores of strategies and thousands of stocks or mutual funds for the ones that will reward them most. A site I have newly discovered, MoneyChimp offers much that can be useful for finding stock market gems as well as managing a portfolio and measuring one's success at this potentially lucrative venture.

Here you will find a good books corner, including a recommendation for one that Warren Buffett called essential for any investor, plus another that is claimed to be as good as a Masters in Business Administration (MBA) but only costs you about $20 and ten days of study.

Here too are succinct, easy to grasp lessons in several of the basics of financial planning, investing, and economics, for instance, pieces on evaluating the intrinsic value of individual securities, simple ways to get at Ben graham-like estimates of companies' per share value, reading financial statements, understanding economic indicators, retirement planning for various good and bad scenarios, analyzing how long it takes to recover from severe bear market declines (such as we had in late 2008 through early March, 2009), and so forth.

There are also a number of nice to have investment related calculator programs:

  • A simple tax calculator.

  • A more complicated year by year tax calculator. (Hint: for most of us the rate remains 15% on non-deferred taxable income, at least through tax year 2011.)

  • A 401(k) calculator.

  • A rule of 72 calculator (for the years needed for one's nest egg to double).

  • A compound interest calculator.

  • A getting out of debt calculator.

  • A portfolio performance calculator.

  • A long-term compound annual return calculator.

  • A discounted cash flow stock worth calculator.

In one small section, there are also a few myths debunked, and the pitfalls of certain popular investment notions, such as dollar cost averaging, are discussed.

Even if nothing else at MoneyChimp were seen as advantageous, one could beneficially employ their handy glossary of financial terms.

None of the articles or calculators on this site require either sophisticated investing skills or significant amounts of time. It is basically a quick and easy way to get a better handle on the artful science of saving and investing.

All in all, MoneyChimp likely deserves to be among your bookmarked links. Once familiar with it, you may see why it is one of AAII's top rated sites. Like me, before long you may find yourself also referring and/or e-mailing it to friends.


Larry is not a professional. Don't take him seriously!

Actually, the investment article provided here is for general information only and should not be considered as professional advice, a solicitation to buy or sell any security, or the Word of God. Investors are encouraged to do their own research while considering their personal goals and circumstances, or consult their own professional financial advisors, before making investment decisions. Neither Larry nor LARVALBUG will be liable for any losses sustained by any visitor to this site.

(Disclosure statement: Larry and Val have holdings in some of the suggested assets but do not "make a market" in any of them and do not derive any direct benefit from recommending them, except perhaps for a bit of smug self-satisfaction.)

Value Investing / Main Index / previous / next