Pathfinders

 Big news!

One of my blog posts has been chosen for the new JL Collins book, Pathfinders.

If you decide to use this Amazon link to purchase the book, I may get a small commission at no cost to you. It's a way to support this blog while educating yourself on how many others have handled their money, in both good ways and bad!

I'm excited for this opportunity to get my story out there, and potentially reach new audiences. It's also gratifying to see that an editorial team saw fit to put my words into their book! Good motivation to keep me writing :)

The publisher, Harriman House, shipped me an advance copy of the book as a thanks for using my writing (they didn't pay me any money for the rights to my writing, so in effect, I suppose the copy of the book is the payment).

Naturally, to fit the length requirements, I had to edit my blog post down a bit, so I can't recall exactly how much I cut out or rephrased myself, and how much was done by the editorial team. But if they did make any changes, they were subtle and well-done, because the segment does sound like my writing style.

So thanks to the Godfather of FI for including me in his latest book!

Now that I'm in it, guess I'll have to put this on the list of the money books you must read! ;)

Pathfinders is on sale now (released October 31, 2023).

Best Value Laptops 2023

 Best Value Laptops 2023

Hi everyone, it's that time again! Here's my roundup of the best value-oriented laptops, by manufacturers with good reputations for quality and reliability.

As usual, I focus mainly on the lower end of the market, with students and bloggers in mind. Also, please note that if you choose to click my links and then you buy something, I may get a small commission at no cost to you.

Lenovo IdeaPad, $370: https://amzn.to/44MO2PA

Lenovo appears to be the king of deals right now!

Even though the processor in this laptop isn't the strongest [nor that weak, for most uses], the SSD and 12GB of RAM should make up for it in everyday usage. If I needed a new laptop, this would definitely be in the running.

However, if you're planning to use this for processor-intensive tasks like compiling code, this may not be powerful enough for your needs.

Key specs: AMD Athlon Silver 3050U, 12 GB RAM, 512 GB solid-state drive, 15.6" screen

Lenovo IdeaPad 3i, $310: https://amzn.to/3OdfBuf

Good entry-level option for someone who needs a basic, lightweight laptop. At $310, that's a deal! Even at $350, that's still a really good price. I'm personally not fond of the lack of a separate number pad, but not everybody needs one.

Key specs: Intel i3-1115G4 processor, 12 GB RAM, 256 GB solid-state drive, 14" Full-HD screen

ASUS Vivobook 15, $600: https://amzn.to/3OipnLA

Need something bigger or more capable than the Lenovo above? Here's a good option, and one I'd strongly consider for myself. At $600, that's a fair price on a capable machine.

Key specs: Intel i5-1135G7, 8 GB RAM, 512 GB solid-state drive, 15.6" Full-HD screen

Lenovo IdeaPad 1i, $360: https://amzn.to/43MsFwq

Another good value play, although again, it's a 14-inch laptop and therefore does not have a separate number pad. Still, a good deal and lightweight, too.

Key specs: Intel i3-1215U, 8 GB RAM, 256 GB solid-state drive, 14" screen

ASUS VivoBook Go 15, $470: https://amzn.to/3OD0lZb

Solid price on a nicely-spec'ed new computer.

Key specs: AMD Ryzen 5 7520U, 8 GB RAM, 512 GB solid-state drive, 15.6" Full-HD screen

Update to add: ASUS VivoBook Go M515DA, $330: https://amzn.to/432o1Mb

Update (3/2/24) to add this one:

If you don't need a lot of storage, this is a great price on a well-built machine. The processor is okay but not overly strong, it has sufficient RAM and only 128 GB of hard-drive storage. 

I have long trusted ASUS machines, and they've mostly been pretty good to me. This is likely to be a reliable option, and a good choice for those who don't want to spend much on a laptop (either because they have a more capable desktop already, or because they don't plan to use a laptop often).

ASUS VivoBook 14 M413 (refurbished), $400 unavailable: https://amzn.to/3QmoMev

This is a solid entry-level option, especially for light users or students. Caveat emptor, though, quality depends on who refurbished this device and how knowledgeable that person is. I've had both good and bad experiences with refurbs.

Key specs: AMD Ryzen 5 3500U, 8 GB RAM, 256 GB solid-state drive, 14" Full HD screen

ASUS TUF F15, $700: https://amzn.to/3YcH3wK

Want to save some cash on a gaming laptop? Here's your solution: a well-reviewed device that's loved by users (77% five-star rating on almost 2000 Amazon reviews!) and plenty capable. The RTX 2050 is a solid graphics card, though you might have to fiddle with the settings to get things to run smoothly on a more graphics-intensive game. To ensure a game runs smoothly, I would use 1080p and wouldn't go higher than 1440p, since this laptop only has a 1080p screen anyway.

It doesn't have the very latest hardware, but if you want the absolute newest, you'll have to pay a premium for it. Might as well sacrifice some bragging rights in order to save the cash. There are other configurations available, but there's a large price jump involved for most of them. Need a deal? This is the one.

Key specs: Intel i5-11400H, 8 GB RAM, 512 GB solid-state drive, 15.6" Full-HD screen, nVidia GeForce RTX 2050

Student Loans Aren't the Real Issue

 Student Loan Forgiveness is Not the Issue

Today, student loan forgiveness is a political hot-button topic. Wade into the morass of comments on articles like this one if you don't believe me.

But that’s not the actual issue. Student loans aren’t the root cause of the economic malaise in which many young people are ensnared.

Rather, student loans are a symptom.

So what is the core issue, then?

Links for July 2023

 Links for July 2023

Happy Financial Independence! Here are some great links I've collected recently:

This is a fantastic breakdown! I'm not usually a fan of infographics, but this one is supremely well-done! https://www.visualcapitalist.com/chart-assets-make-wealth/

https://spintwig.com/fire-taxes/

A great reminder to consider before you invest: https://noahpinion.substack.com/p/on-bullshit-in-investing

This will make you think: https://thereformedbroker.com/2022/10/02/you-werent-supposed-to-see-that/

https://retireearlyhomepage.com/careeradv.html

http://www.realworlddivorce.com/Ohio

https://web.archive.org/web/20220717095628/https:/truecostofhealthcare.org/medicare-supplemental-insurance/

https://retireearlyhomepage.com/medicare2022.html

Vanguard is usually trotted out as the best possible brokerage firm. But are top management's interests really aligned with their fundholders? Note: this article is from 2002
https://www.forbes.com/forbes/2002/1028/058.html?sh=5d0cc9bf135b

I'm sure that John Bogle would have something to say about that if he were still alive...

Bubbles, Beanies, and Bullion: How Even A Kid Can Identify Bubble Psychology

 Bubbles, Beanies, and Bullion: A Lesson from My Youth

I’m just old enough to remember Beanie Babies, the State Quarter program, Pokemon cards, and the inflation of the dot-com bubble. All at once.

And at the time, I was just old enough to have begun learning about coin collecting, a hobby I still pursue today. As part of my education on coin collecting, I learned the basics of supply and demand, which seemed not to apply during the run-up of the Big Bubble in the late 1990s.

Image credit: https://pixabay.com/photos/money-coins-gold-currency-coin-605075/

Links for April 2023: History of FIRE edition

 Links for April 2023: History of FIRE edition!

Happy Financial Literacy Month! Here are some links on the history of financial independence on the Internet:

Who originally coined the term FIRE? Apparently, it came from the Motley Fool discussion boards, circa 2000/2001: https://retireearlyhomepage.com/fire.html

The above information comes from the website of a forgotten pioneer of the movement: https://forum.earlyretirementextreme.com/viewtopic.php?t=10436

Greaney's page still has the Web 1.0 look; a simple style that reminds you of a Geocities page (remember them?). However, it's still maintained and updated! Here's a list of articles, in chronological order (some really great stuff, too! I'm fond of the "Retire Early in the News" posted July 1, 1997): https://retireearlyhomepage.com/chronidx.html

Heck, early retirement has apparently been mainstream since 2004! https://www.newsweek.com/retiring-early-quit-time-your-side-124127

Should you have precious metals in your IRA?

 Should you have precious metals in your IRA?

You may have seen those commercials (like this one) advocating the use of a gold IRA or precious metals IRA. So...is it a good idea? Should you put your money in one?

The short answer? No. At least not more than a small portion of your money.

But why not?

Ah, now that is an interesting question!

1) Fees.

An important part of the Froogal Stoodent-approved investing method is to use low-fee options.

Storing your gold, silver, and platinum in an IRA is not a low-fee option. Some are better than others, but in every case, the company administering your IRA has to make money. That's not easy to do when they have to buy precious metals, pay for storage lockers and security, plus rent on the building, plus keep records of who owns what, and file reports with the government.

2) Performance.

Precious metals have a dismal performance record, even next to Treasury bonds. Stocks and REITs absolutely blow gold out of the water, in terms of performance over the past (pick a term - 20 years, 50 years, 100 years, or more).

3) Shenanigans.

You'll have to do some digging to make sure your claims are actually backed by physical gold. Otherwise, you're left holding worthless paper claims to a precious metal that doesn't actually exist.

At the risk of sounding like a conspiracy theorist, the paper claims on precious metals greatly exceed the actual amount of precious metal in the world: https://silverseek.com/article/paper-vs-physical-amazing-amount-leverage-silver-market

I'd guess that a significant amount of these paper claims come from commodities traders (not so much from unscrupulous providers of precious metal IRAs), but that's only a guess.

Just in case you think that link above seems a little sketchy (it strikes me that way, too, though I find the analysis believable), here are various other sources saying something similar: Link 1, Link 2, Link 3, Link 4

4) Inconvenience.

Imagine a situation comes where you'll have to use your gold, because some sort of disaster (or series of disasters) makes ordinary banking impractical.

In this disaster scenario - the only time you'll actually NEED that gold - how quickly do you think they'll send your gold after you call for a redemption? When, of course, everybody else is ALSO calling them for a redemption?

The custodian will be overwhelmed, at the very moment when you need a quick response.

5) Distributions.

Once you reach a certain age - as of 2023, it's age 73 - you will have to sell some of your holdings, whether you want to or not. Whether the price is up or down. [In fairness, this applies to any holding in a traditional IRA or 401(k), including stocks and mutual funds.]

It's called an RMD, or required minimum distribution, and it's a government mandate, so that they can finally start collecting those taxes you've been putting off during the past 40+ years.

6) Requirements.

You can't just hold any type of gold or other precious metal. No, the federal government specifies certain purity requirements. They also penalize you if you hold collectibles, such as coins, in your precious metals IRA, even if the coin meets the purity requirements!

Royalty-free image from https://pixabay.com/photos/gold-ingots-treasure-bullion-513062/

No, IF you want gold or other precious metal, you're probably better off having some physical coins or bars in your house, or in a safe-deposit box nearby. But, of course, each of those options comes with its own issues and challenges (and expenses).

What do I do? Me, personally?

Well, I've collected coins since I was in elementary school. Recently, I've been taking a small amount of money and buying older coins that interest me, as well as the occasional silver round or tenth-ounce gold coin. I keep the more valuable ones in a safe-deposit box.

But these purchases only amount to a very small portion of my net worth. Like, 0.4% of my net worth.

I think it's an interesting hobby, and also a way to preserve some purchasing power, in the event of some sort of economic collapse or hyperinflation. But the odds of those disasters are pretty small, so I only commit a relatively small amount of resources to the pursuit. Because, in the end, it's mainly a hobby.

In my own IRAs, I use index funds - low-cost stock, bond, and REIT funds. I, personally, do not have precious metals in my IRA. I prefer to have my precious metals within easy reach.

Don't believe some random blogger? That's okay, I don't blame you. Here's Investopedia's take on the matter: https://www.investopedia.com/articles/personal-finance/091814/analysis-should-you-get-gold-ira.asp

Investopedia has a list of some of the best custodians to consider, if you're still interested: https://www.investopedia.com/best-gold-ira-companies-5087720

__________

Want to learn more? Check out my book reviews, including Ray Dalio's Changing World Order: https://froogalstoodent.blogspot.com/2022/04/the-changing-world-order-froogal.html

Links for February 2023

Links for February 2023

This is alarming, but alas, not surprising: https://www.icij.org/investigations/fincen-files/global-banks-defy-u-s-crackdowns-by-serving-oligarchs-criminals-and-terrorists/

In the same vein, but more direct: https://wallstreetonparade.com/2019/04/research-study-on-ongoing-crime-spree-by-wall-street-mega-banks-gets-news-blackout-heres-why/

• The full report referenced in the Wall Street On Parade article: https://www.bettermarkets.org/sites/default/files/Better%20Markets%20-%20Wall%20Street's%20Six%20Biggest%20Bailed-Out%20Banks%20FINAL.pdf

Just a reminder: https://wallstreetonparade.com/2023/01/after-16-months-there-are-still-no-arrests-in-the-feds-trading-scandal/

One of the worst cases of inflation on record (the second-highest rate of inflation, behind Hungary post-World War II): https://www.economicshelp.org/blog/390/inflation/hyper-inflation-in-zimbabwe/

More interesting musings from SteveArk: https://steveark.com/2022/11/18/how-much-money/

Insightful analytics on millionaires in America: https://dqydj.com/millionaires-in-america/

Speaking of reports on millionaires, how about Credit Suisse's Global Wealth Report?  https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html

A compelling deep-dive into the reasons why medications cost so much in the United States:  https://www.yahoo.com/news/130-000-medicine-outrageous-blame-120004797.html

Great analysis on stocks as an inflation hedge: https://www.kennongreen.com/investing-in-stocks-as-a-long-term-inflation-hedge/

Happy Financial Wellness Month!

Happy Financial Wellness Month!

As Financial Wellness Month winds to a close, this is a good time to reflect on your goals - for the new year, and for the rest of your life.

Purdue University provides some helpful money management resources here: https://www.purdue.edu/dfa/students/moneymanagement/.

The Consumer Financial Protection Bureau provides a brief survey to help you assess where you stand: https://www.consumerfinance.gov/consumer-tools/financial-well-being/

Here's to a healthy and successful 2023!

Links for Jan 2023

Links for Jan 2023

Enjoy this food for thought during the depths of winter! (At least, winter in the Northern Hemisphere. To readers in the Southern Hemisphere, such as Australia, New Zealand, and South Africa - we're all jealous of you, enjoying the nice summer weather!)

Without further ado:

These should induce rage among young people, and should probably induce rage among older people on behalf of younger people. But unless that rage gets converted into productive action, I'm not sure how much good it'll do.

• https://www.supermoney.com/average-millennial-income/
• https://www.businessinsider.com/income-increase-young-adults-less-than-housing-tuition-costs-2019-9

Great reminders from Darius Foroux:

• https://dariusforoux.com/money-fallacy/
• https://dariusforoux.com/money-principles/

A couple worthwhile lessons from the book The Millionaire Mind, written by Thomas J. Stanley, author of the bestselling The Millionaire Next Door: https://limpression.org/the-millionaire-mind/

Since crypto and FTX is in the news, I'll include these from CNBC:

• https://www.cnbc.com/2022/12/13/live-updates-ftx-collapse-house-lawmakers-hold-hearing-following-arrest-of-founder-sam-bankman-fried.html
• https://www.cnbc.com/2022/11/15/cryptocom-customers-worry-it-could-follow-ftx-ceo-reassures-them.html

And I'll issue a reminder of my Bitcoin analysis from 2018, which still holds today: https://froogalstoodent.blogspot.com/2018/01/should-you-invest-in-bitcoin.html

Stumbled across this interesting piece on Wikipedia. Speaks to how interconnected the world is, as well as providing yet another lesson in the dynamics of stock market bubbles: https://en.wikipedia.org/wiki/2015%E2%80%932016_Chinese_stock_market_turbulence

An essay by Michael Crichton, published in 1993! https://www.wired.com/1993/04/mediasaurus/

'Our kids say our small house is embarrassing.' Spoken like people that didn't have to pay for anything: https://www.marketwatch.com/story/our-kids-say-our-small-house-is-embarrassing-my-husband-and-i-earn-160k-have-1-million-in-retirement-savings-cook-at-home-and-drive-an-old-honda-are-we-missing-out-11673356853

• Sounds like these kids need to read The Millionaire Next Door, so they can learn how wealthy people REALLY behave!