Too sexy or perhaps too poor for lipstick; All that glitters is gold to the taxman; Underground economists; Too much savings? 10 tips for the successful long-term investor

By Amanda Morrall

1) Lipstick index down

Let me say from the start, I think the Lipstick Index is a scam. It was a term coined in during the tech bubble by the cosmetic giant Estee Lauder ostensibly to measure consumer appetite for small 'luxury' items during a period of otherwise restrained spending. Cynically, I think the lipstick index (it's a great handle I'll give them that) was a brilliant marketing ploy to boost lipstick sales. The index basically gave the ladies permission or encouragement to buy.

But I digress and here's where the bad news comes in. Even the lipstick index is apparently down in the U.S. Apparently glossy, painted lips are more than women in the U.S. can afford to shell out for. Instead, according to this article in the Globe and Mail, times are so bad the only discernable ego-boosting purchase evident in the American vanity market is nail polish. Cheap and cheerful is the order of the day. Sad.

2) All that glitters is gold to the taxman

Was it Marilyn Monroe who said diamonds are a girl's best friend?  Well, apparently the taxman makes for a jealous ex-lover because he wants a hand in the sparklers too, at least those that get flogged on the seconds market for a profit.

Second-hand sell off jewelry is normally off the radar for the taxman however, there's a fair bit of public interest in the sale of geriatric playboy Hugh Hefner's ex-fiance's ring which apparently cost the notorious womaniser US$90K. Here's Forbes.com explaining the finer points of tax law around expensive gifts like diamonds. If the ring ends up selling for more than Hefner shelled out for it, ex-Crystal Harris will be sharing a portion of the booty with the IRS.

3) Your tax personality

The whole tax thing burns me up. Actually I can't think about it too much, or I'll blow a fuse.

I was somewhat amused by the tax character profiling put together by the taxman in Canada. The illustrations fashioned by the Globe and Mail to go with are fantastic. I'd be very curious to know how the IRD breakdown of these character types would look proportionally speaking in New Zealand. The six archetypes are: outlaws, overtaxed opportunists, underground economists, rationalisers, altruistic compliers and law abiders. Hmm, I think I'm a hybrid. I won't say which.

4) Too much savings

Wallis Simpson famously said you can never be too rich or too skinny. Personally I think extremes of any kind are never healthy but what do I know? I'm neither "rich" or anorexic and strive for the middle path.

Simpson had a lot of enemies but she'd have an ally in the Reserve Bank of Australia's assistant governor Philip Lowe, who gave a speech recently and warned about the dangers of too much savings.

5) 10 tips for the successful long-term investor

Fed-up investors are tripping over themselves to get out of the markets these days. Those holding the course may take comfort in this piece from Investopedia, a slide-show on the top 10 tips for successful long-term investing.