Winning At Investing

Investing takes patience. It also takes a mindset.

You hear about your friend’s big investment win. You see the car he bought or the trip she took, claiming it was from some hot stock pick. How do you react?

Do you start to doubt your strategy? Do you fear you’re losing in some way? 

When you feel this doubt, look at your lifetime returns.

Has it risen? Has it…

Read More

The Isolation Of Financial Independence

The Dr. Seuss classic, Oh the Places You’ll Go is one of my favorite books to read my young child. It’s an amazing synopsis of what a kid can emotionally expect to experience in the future. In just a few pages it captures the ambition, thrill, excitement, boredom, trepidation and isolation of life.  

So many of the lines are pertinent, even for adults. It’s this one, discussing loneliness, that always stands out to me:

“All Alone!

Whether you like it or not,

Alone will be something

You’ll be quite a lot.”

It’s true. As we become young adults, and move into our careers, it’s this isolation that we try to avoid at all costs. It can often lead us to spend more than we want. It’s often why we go out to the clubs, restaurants or extravagant outings. It’s often why we purchase the nicer car, the bigger home, the better jewelry. 

We want to show people we have value so they will want to remain near us. We want to outrun – or outspend – this loneliness.

As you take your initial steps towards financial independence

Read More

Sequence Risk Is Like Your Drunken Friend

Whether you’re retiring in your 40s or 70s, the biggest risk to your post-work wealth is what’s known as sequence risk.

It’s the threat that a recession or downturn will hit at the beginning of your retirement, instead of a few years in. Experiencing a downturn right as you begin to tap your portfolio for funds can deplete its ability to grow at the rate you need it to during your retirement. 

Say you and your friends decide to go out to the bars. You know you plan to have a few drinks, mingle with your buddies and maybe meet some new people.

As you enter the bar, there’s the risk that one of your buddies started much earlier than you. It’s possible that they’ve already drunken far too much, causing a disturbance, bothering people and getting sick. Right as you enter, they’ve already sabotaged your night. Instead of having a few drinks and laughs, you’re stuck…

Read More

Betting On The Next "Can't Miss" Investing Trend

When you see the next big investing trend skyrocket in value, do you buy in?  

If so, why? 

Do you believe it will allow you to escape your job? Do you see it as a pathway to explore your dreams? Have you convinced yourself this trend is somehow different than all the other bubbles of the past?

Instead of buying in, maybe it’s time to return to your life goals.

Your investing strategy should mimic those goals, providing you with the expected returns that will provide the funds for your future.

If that investment you made into the next big trend plummets…

Read More

It’s Hard to Imagine

It’s hard to imagine when you’re earning your first paycheck, loaded with debt, waiting for the future, struggling to pay your bills, desiring everything your friends seemingly have, that this is the time to think about what you NEED for your future.

If you know what you NEED then you can pinpoint the amount you must make in your career to quit.

The sooner you understand your number, the easier it will be to determine what matters to YOU. You’ll shed the expenses that you accrue living up to an imagined life, focusing on the costs that actually fulfill you. Your car, restaurant and bar expenses will likely fall while your enjoyment…

Read More

It Takes Time

A word of warning: getting your financial house in order takes far more time than you expect. 

That doesn’t mean you should avoid it.

While everyone wants to put a dollar value on their time, the benefits of understanding these numbers will outweigh any dollar value you might lose by accurately understanding your true worth.

Moving your investments around so they’re in the right vehicles, invested in the right funds with low fees will provide you comfort knowing you secured future income.

If you’re not trying to beat the market, then all of this can be done…

Read More

Assets vs. Liabilities

Do you know the difference between assets and liabilities? Or, to rephrase, do you know the difference in how you should view them while building wealth?

For most people, assets are those THINGS that could become money one day. This can include items like your house, your car, or jewelry.

For most people, liabilities are those THINGS that you’re still paying for. This can include things like credit card debt and student loans.

But when accumulating wealth – and really you can view these terms in this way for most of your life – assets bring in money.

Liabilities take away money.

How does that change your financial outlook?

Read More

The Power of 1

Think small changes can’t make a difference in your finances? Then think about the power that the lowly number 1 has in building your wealth.

By upping your savings rate by just 1% a year, you can increase it from 10% to 20% in ten years, vastly improving the probability you can safely retire one day.

Saving $1 more per day can save you $30 more a month, and $365 more a year.

Having one car versus two can save you over $800 a month, on average, or nearly $10,000 a year.

A difference of 1% in investment fees can result in a difference of hundreds of thousands of dollars by the time you retire.

Imagine…

Read More

Meddling With Your Finances

We’re natural meddlers. We want to tinker. We see something that doesn’t quite work right, and we want to find a way to do it better.

It’s what created self-help. We see people tired of their jobs, sick of low pay, need new outlets for creativity and an entire industry has grown from advice.

It’s inherent in being human, engrained from childhood. If something doesn’t work this immediate moment, how can you do it better? It’s a natural impulse.

This tinkering has led to technological innovation, allowed us to reach the moon, and cure cancers. It’s a human marvel!

Except when it comes to finances

Read More