What the experts say

‘Vulture’ investors have a feast

This has been “a very good week” for investors who specialize in buying distressed companies, said Jonathan Burton in Marketwatch.com. “People are running for the exits; we’re going the other way,” says David Winters, manager of the Wintergreen Fund. Deep-value investors look for companies with strong long-term business prospects. Students of Benjamin Graham’s “classic value investing playbook,” The Intelligent Investor, they prize capable management teams and keep an eye out for grossly undervalued stock or debt. They aren’t just contrarians but “very comfortable wading into complicated situations,” says Russell Kinnel, director of mutual fund research at Morningstar Inc. The strategy can require some patience, especially “in a business where it often seems that managers change fund holdings as often as their clothes.” But when companies do bounce back, these “cheapskates” may look like geniuses.

Simple energy-saving steps

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“You don’t have to be a tree hugger or a miser to be a conservationist these days,” said Josh Garskof in Money. With energy costs up 30 percent already this year, you’d be a fool not to make some simple and inexpensive fixes that could shave a couple thousand dollars off your annual utility bill. Start in the attic: If you don’t have at least 10 to 12

inches of insulation between joists in the unfinished floor, lay more or risk sending precious heat out the roof. Cover exposed heating and cooling ducts in the attic and basement with insulation, too, and wrap your hot-water heater with an energy-saving blanket. Install a programmable thermostat, if you haven’t already. Finally, pay a professional to service your furnace and air conditioning annually. The initial expense is half what you’d pay in higher energy bills.

Raising financial whiz kids

To teach your kids that money doesn’t grow on trees, give them an allowance, said Janet Bodnar in Kiplinger’s Personal Finance. When children have to make their own money decisions, “they’ve got skin in the game.” Most are ready for an allowance at age 6. “Start with a basic weekly allowance equal to half the child’s age.” A common dilemma parents have is whether to treat the allowance as payment for kids doing their chores. “I’m in the camp that believes kids should clean their room or help unload the groceries because they’re asked to, not because they’re paid.” Instead, make the allowance contingent on the child taking responsibility for certain expenses, such as candy at the movies. “As your kids get older, you can expand their allowance and their responsibilities.” Eventually, you can even introduce that novel concept—saving money.