Michael Santoli Leaves Barron's Magazine

What does a financial advisor do when his favorite financial author (Michael Santoli) leaves his favorite financial publication (Barron's)? I'm still in the process of figuring that out. 

Michael Santoli wrote the "Streetwise" column in Barron's for many years, but several months ago he quietly up and left for Yahoo Finance.

I've been a reader of Barron's since 1997, but I became an avid reader during 2008. I thought Barron's had some of the best coverage out there on the Great Recession.

Barron's had a winning formula. Each weekly edition began with commentary by Alan Abelson. Abelson's editorials are notable because of his cynicism and bearishness, as well as his literary writing style. (Sometimes when reading Abelson I feel like I am reading Hawthorne.)

Abelson is also one my favorite writers, and one reason is I can never get through one of his weekly commentaries without being made aware of the many problems in the financial world. I find it a healthy exercise as it protects against overconfidence.

Michael's commentary used to follow, and it featured a more middle of the road, open minded sentiment. So Barron's had a sort of one-two punch going with the Abelson and Santoli team. The sum was more than the parts, which is the hallmark of a good team.

Santoli's articles were insightful. Although you would need to read him for a while to get a feel for his work, one example would be the time he pointed out the popular Drudge Report often functioned as a contrarian indicator - a useful concept since the influential online site is inevitably one of the first to jump on the "sky is falling" bandwagon and fan the flames of panic whenever the market acts up a bit.

With so many financial writers out there, why does Santoli's exit matter?

Look at different leading writers and you'll notice they all have different opinions. If you read ten articles, five may be bullish and five bearish. It is easy to end up more confused than when you started. It's hard to find a writer you trust, and it was nice following Michael's insights every week. I'll keep reading Barron's, but I reckon it's also time to bookmark Yahoo Finance.

Still, Saturday mornings with Barron's just won't be the same.

Update on My Native Florida Lawn

Sometime back I posted on my experience with starting a Florida native lawn. I think native lawns are a great idea, and I'm happy with the results. Since I have received a fair amount of email about that post, I thought I would add an update.

To recap, the idea behind a Florida native lawn is to use a native ground cover rather than grass. There is a water shortage in Florida, and it will probably get worse. Florida native plants are drought resistant as they grow in this area naturally and are adapted to the climate. Natives in general do not need watering, pesticides, herbicides, or fertilizer.

In addition, wildlife can live in the ground cover - unlike grass - which is good for the environment and the ecosystem. Sunshine Mimosa especially attracts butterflies, birds, and bees. It grows more slowly than grass, so it needs less mowing. It is even possible to not mow at all - it will grow about a foot high.

Now after having a Florida native lawn for three years, here's my take:

First, the good:

• Sunshine Mimosa does not require water. Even in times of drought, it flourishes.
• Sunshine Mimosa is quite green. People who were initially skeptical of a native lawn often have reacted positively when they see how green it is.
• Sunshine Mimosa is easy to grow and spreads readily.
• If you prefer to mow it like grass, it mows easily.

The not so good:

• Although Sunshine Mimosa is classified as a perennial, I can promise you it is dormant in winter. This means it turns brown. This is fine with me, but in Central Florida, many people seem to want their yard to be green year round.
• Weeds. Sunshine Mimosa will not crowd out weeds, so you'll have to weed or use a herbicide occasionally.
• Sunshine Mimosa, true to its name, grows only in direct sunlight. You'll need a different ground cover for your yard's shady areas.

Here's pictures.

First, Sunshine Mimosa in it's natural state (this is from my backyard):




Sunshine Mimosa

One question I am often asked is how Sunshine Mimosa looks after it has been mowed. As you can see, it looks very much like grass:



Sunshine Mimosa: Mowed

I have young children, so if the Sunshine Mimosa has been mowed, they can play in the yard, as it forms a grass-like turf.

Hope this helps and I wish everyone luck in their future endeavors with Florida natives. I have a sense this may be the wave of the future, at least in Florida with its climate and water shortage issues. Good luck and feel free to email with questions.

ADD and Your Money - Book Review



Image: Amazon.com


I just finished the excellent book,  ADD and Your Money: A Guide to Personal Finance for Adults with Attention-Deficit Disorder, by Stephanie Moulton Sarkis PhD and Karl Klein, J.D. I became interested in the topic of ADD and money management after hearing Dave Ramsey speak about the special challenges people with mental health challenges face in their financial affairs.

In her book, Dr. Sarkis points out Attention Deficit Disorder (ADD) is a genetic disorder which affects over 4% of the U.S. population. Symptoms include disorganization, difficulty focusing and following through with tasks, and avoiding tasks which require considerable mental effort. What I find interesting is while we often hear about the challenges posed by ADD to students and learning, it is rare to hear about ADD in relation to money management.

Dr. Sarkis points out such challenges are significant: People with ADD tend to earn less money than those without ADD, even with a similar education level. They are more likely to take risks that lead to a loss of money; and they have higher medical expenses. The first step to addressing any problem is to be aware of it, and in the first part of the book, we learn why ADD poses such a challenge in terms of personal finance.

In the second part of the book, Dr. Sarkis and Karl Klein provide a comprehensive financial guide to personal money management, covering such topics as Investing, Organizing Your Money, Spending, Loans and Debt, Bank Services, and Talking to Your Kids About Money. (Dr. Sarkis believes that much a person's behavior with money is based on how their parents handled money when they were a child).

Dr. Sarkis has an interesting recommendation: since individuals with ADD tend to be competitive, she recommends approaching money management as though it were a game. There is also lots of great practical advice. For example, one of my favorites was her recommendation to evaluate clothing purchases on a "cost per wear basis." She also discusses the importance of planning for emergencies, paying off debts, and avoiding status spending and gambling.

I found this book to be valuable in terms of gaining an understanding of the challenges ADD presents to money management, and as an in-depth and practical financial management handbook tailored to those with ADD.