-
13 Mar '22Live the FIRE Movement
Continue readingThe FIRE movement is about Financial Independence, Retire Early (FIRE). Generate enough “income” from your investments to cover your expenses, so you no longer needing to work to pay your expenses (all prior to traditional retirement age). The core principals include: Dramatically reduce expenses Save aggressively and funnel savings into investments Accumulate enough assets to […]
-
01 May '21Savings Bonds – Inflation Hedge Series
Continue readingArguably, the simplest of all investments—U.S. Savings Bonds—may be the best current hedge against inflation available. As discussed in my prior post, Are TIPS a Good Investment, TIPS are nearly the perfect inflation hedge. Your return is fully protected from inflation since the bonds yield is adjusted based on actual inflation experienced. You receive a […]
-
02 Feb '21Financial Rubbernecking – Part 3: Retirement Accounts
Continue readingHow do your retirement savings stack up? Are you accumulating retirement assets faster than your peers? This is the third posting in a series exploring these types of questions. (See Part 1 – Income; See Part 2- Net Worth) Every three years I look forward to the latest Federal Reserve Board’s Survey of Consumer Finances […]
-
12 Jan '21Financial Rubbernecking – Part 2: Net Worth
Continue readingHow do your finances stack up? How are doing compared to others? Are you accumulating assets faster or slower than your peers? How does your net worth measure up to the rest of the country? This is the second posting in a series exploring these questions. (See Part 1 – Income) Every three years I […]
-
07 Dec '20Financial Rubbernecking – Part 1: Income
Continue readingTech employees – as a group – are highly-compensated. However, it may not feel that way given the high cost-of-living in many tech hubs like Seattle and the San Francisco Bay Area. To keep grounded, every three years I look forward to the latest Federal Reserve Board’s Survey of Consumer Finances (SCF) to remind us […]
-
06 Sep '20How Much Wealth Should You Have by Age 45?
Continue readingAs a rule, people like to know if they are making progress toward a comfortable retirement, how their wealth compares to their peers, and how their investments are performing. When saving for retirement, the question is often “how much should I have saved at my age?” Ideally, this question would be answered in the context […]
-
24 Jun '20Rule of 72
Continue readingAs you save for retirement, there is a simple rule of thumb for determining what your investments will be worth in the future. It is called the “Rule of 72.” This simple rule quickly tells you how long it takes to double your money at a given rate of return (or interest rate). Divide 72 […]
-
08 Apr '20Now What?
Continue readingNow What? Stay calm and do nothing. With global stock markets tumbling and an extreme level of uncertainty around the future, human nature is act, to do something, to intercede, to make things better. Yet as a long-term investor, you are often best served by doing nothing different (or very little). Just let your investment […]
-
23 Mar '20Five Predictions For 2020
Continue reading2020 Predictions The Chinese stock market will outperform Berkshire Hathaway will cut several deals with distressed companies at bargain prices Top line shines, margins suffer for diversified retailers (grocery) The Fed will nationalize an additional $5+ trillion of the national debt Extraordinary government programs to bailout small businesses With large swaths of the global […]
-
04 Jan '20Decade in Review
Continue readingU.S. Large Stocks Dominate Investing this past decade has been defined by a long bull market rising from the ashes of the Great Financial Crisis of 2007-2008. The current bull market—defined as a generally increasing stock market without a 20% decline—is now almost 11 years old, the longest in U.S. history. Like other bull markets, […]
-
24 Oct '19How the USA will default on the national debt
Continue readingOnce upon a time, politicians paid lip-service to the idea that our country should operate with some semblance of fiscal responsibility. It’s almost comical to look back at Ross Perot’s presidential runs in 1992 and 1996 when he used flip charts to rally against government debt. Back then the United States had a national debt […]
-
02 Aug '19Roadmap to Retirement: FIRE or FRA
Continue readingA comfortable retirement—with ample assets—is the ultimate savings goal. Sacrifice consumption today so that one day you are financially independent and can retire with a fulsome lifestyle. Early retirement advocates have adopted the acronym FIRE (Financial Independence, Retire Early) as their rallying cry. The FIRE movement largely focuses on limiting expenses—living on a fraction of […]
