Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

Thursday, July 7, 2022

A Conversation on the 4% Rule

 A Conversation on the 4% Rule

I had a brief conversation with Steve of the SteveArk blog, in his thought-provoking post on the 4% rule.

My initial comment was WAY longer than it should have been, but the thoughts and resources just kept pouring out of me, as I couldn’t help but think “what if somebody runs across this, a few years from now, and wants to know more?”

So I figured I might as well turn this into a post on my own blog! Perhaps I can do a better, more well-thought-out (and well-edited!) version here. So here goes:

Thursday, March 18, 2021

From 10K to 125M: Why compound interest is the 8th wonder of the world

From $10,000 to $125 million:
Why compound interest is the 8th wonder of the world

I can show you how to turn 10 grand into a private-jet-level fortune!

The only problem? It takes 92 years. So your fortunate grandchildren are the ones who will actually end up with nine-digit wealth.

But you can harness the same incredible power to work for you, within your lifetime! No B.S., no tricks.

Stick with me, and I’ll show you how it’s done.

Note the logarithmic scale on the y-axis

Thursday, May 14, 2020

Blog roundup May 2020

Blog roundup/interesting links May 2020

A great summary of the FIRE movement:
https://www.thousandaire.com/its-all-about-creating-income/

I've linked this before, but it's worth including again:
https://www.wealthwelldone.com/how-can-i-change-my-life/
     -And while we're using allegorical stories:
     https://froogalstoodent.blogspot.com/2017/01/a-tale-of-two-kingdoms.html

A sound planning session with Inspire to FIRE:
https://www.inspiretofire.com/recession-investment-plan/

The benefits of FI:
https://www.physicianonfire.com/the-benefits-of-financial-independence

Though I don't usually condone day trading, a little information about good, debt-free companies won't hurt. To that end, this is one part of a series on debt-free companies. I like the analysis, though it's not actually influencing my own investing decisions:
https://seekingalpha.com/article/4339254-debt-free-companies-of-s-and-p-500-jack-henry-associates

Some good guidance on how to handle a dip in the stock market if you're planning to retire soon; good advice to hear if you're worried about how the COVID-19 economic slowdown will affect your ability to retire:
https://www.moneytalksnews.com/retire-even-when-the-economy-heads-south/

Jim Collins is ALWAYS worth reading and considering. This one is particularly notable for a great line by Jon Older, in his 8:54 PM comment: "Like a famous person once said, money is like a bar of soap. The more you handle it, the smaller it gets." Great stuff!

How does Japan deal with its extreme population density, especially in Tokyo? Micro-apartments!

Another dose of sanity, this time from Mr. Money Mustache:
-The money quote: "But in this situation, it really helps to understand the big picture of what is actually going on. The world is not ending. The air outside your windows is not a swirling cloud of certain death. All that has changed is that we are in a self-imposed economic slowdown that has been created purely to save the lives of our most vulnerable people. Which is one of the most compassionate things our society has ever done." [emphasis in original]
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Saturday, February 22, 2020

Interesting links

Interested in football? In XFL 2020? In the entertainment industry? This is a quick but interesting read:
https://finance.yahoo.com/news/xfl-may-pull-off-something-no-league-has-before-but-week-3-is-critical-175105240.html


Interested in cars? In Australia? After 150 years, Holden is going away. This is probably surprising news, unless you live in Australia or work in the automotive industry:
https://www.autoweek.com/news/industry-news/a31023811/saving-holden-would-have-required-billions-report-says/

The human body apparently isn't 98.6 degrees anymore:
https://elemental.medium.com/the-average-human-body-temperature-is-no-longer-98-6-f-c88c19716852

A way to calculate retirement age in each state. Keep in mind that each person's situation is different, but this is a good way for us FIRE enthusiasts to stay focused on the end goal:
https://finance.yahoo.com/news/most-realistic-retirement-age-every-100000297.html

Tips on how to save for the down payment on a home, directed especially at first-time homebuyers:
https://www.thepennyhoarder.com/home-buying/how-to-save-for-a-down-payment/

Ideas for passive income, the holy grail for investors:
https://moneydoneright.com/best-passive-income-ideas/

Do you have to work until full retirement? Not if you don't want to:
https://www.forbes.com/sites/ryanderousseau/2020/03/27/32-year-old-stopped-focusing-early-retirement-embrace-mini-ones/#5a7d0fe3420b

Which should I prioritize: my emergency fund, or my retirement? https://www.thebalance.com/average-retirement-savings-by-age-4155888

Friday, June 22, 2018

Friday, August 4, 2017

Links for your financial health, August 2017

Links for your financial health, August 2017

There's no substitute for personal responsibility and fair laws (not to mention equitable enforcement of those laws). Their absence may lead to the downfall of the United States: http://howigrowmywealth.com/made-america-wealthy/
     -Don't think the U.S. is fiscally doomed? Illinois might already be.


Excellent advice for college students: http://www.themillenniaires.com/managing-the-colossal-costs-of-college/

Excellent financial advice for college students (and non-college-students, for that matter): https://kjhfinancialservices.wordpress.com/2017/07/18/starting-college-financial-tips/

Would less work make us more productive? https://crew.co/blog/why-you-shouldnt-work-set-hours/

Tuesday, April 25, 2017

Should you trust the stock market? Pt II

Should you trust the stock market? Pt II


What if I told you there is a surefire way to invest in winners?

What if I told you about a method of stock selection that automatically dumps the losers—without requiring you to lift a finger?

And what if I then told you that this strategy costs less than other strategies, despite being more effective?!

You'd think I was a snake-oil salesman, right? But what if I'm telling you the truth, and the other guys are the snake oil salesmen?...



Thursday, February 23, 2017

Is your retirement in jeopardy?

Due to severe budget problems, Puerto Rico will have to slash its budget, as announced in February 2017 (see http://www.businessinsider.com/the-board-has-spoken-puerto-rico-to-be-hit-with-painful-austerity-measures-2017-2). This includes cutting 10% from the retirement system for government employees, since that system is on the verge of running out of money completely. Sound familiar, U.S. residents?...

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Monday, October 3, 2016

Links October 2016

Donald Trump could have had twice as much money as he has now if he'd retired 30 years ago and invested his money into index funds:
http://www.moneytalksnews.com/why-youre-probably-better-investing-than-donald-trump/?all=1

The Parable of the Little Red Hen:
http://www.intellectualtakeout.org/blog/makers-vs-takers

We need to encourage entrepreneurial spirit like this:
http://www.intellectualtakeout.org/blog/we-need-more-entrepreneurial-children-one

You're not going to get any help in retirement--not from the government, not from your employer. Plan accordingly: http://redpillmoney.blogspot.com/2015/08/saving-means-investing-or-how-to-fund.html

College isn't for everyone. This entertaining video explains more: https://www.youtube.com/watch?v=2CmbJzPmQ-M

Speaking of college, jlcollinsnh includes this gem:
"Moreover, one of the more unfortunate results of spiraling college costs and debt is the way it has warped the very concept of higher education. Rather than the pursuit of learning and culture, it has become the pursuit of job training in an effort to secure employment that will justify the astounding cost and debt incurred.

"Even successfully applied, this shackles young people to jobs long after the appeal has faded. Youth should be spent exploring—building and expanding one’s horizons—not grinding away in chains."
http://jlcollinsnh.com/2015/03/26/stocks-part-xxviii-debt-the-unacceptable-burden/
-Amen, brother!

And also this, from the very popular James Altucher: http://www.jamesaltucher.com/2011/01/8-alternatives-to-college/
When one or two people buck the trend, they may be visionaries--or they may be saying something edgy for the sake of saying something edgy. But when a lot of successful people are saying the same thing, there's probably something to it!

Maybe baby boomers should quit complaining about the 'attitude of entitlement' in the generation they raised:
http://www.intellectualtakeout.org/blog/boomers-you-made-us

Speaking of entitlement: http://www.foxnews.com/us/2015/07/19/college-student-blames-parents-after-blows-0g-college-fund/

How and why the media sometimes creates "news" that may or may not be true:
http://www.intellectualtakeout.org/blog/war-worlds-how-media-%E2%80%9Ccreates%E2%80%9D-news

Tuesday, March 1, 2016

Links for March 2016

The Simple Life: would you rather spend money on that thing that caught your eye...or not have to work? The choice is yours.

Along those same lines...Stepping away from the rat race can bring you true, lasting joy that a fancy purchase will never induce. The Frugalwoods have their heads on straight!

My grandmother kept a newspaper clipping that was similar to this powerful list on her refrigerator. It concluded that you can have the husk of everything for money, but not the kernel. This quote is attributed to Norwegian writer Arne Garborg.

Flipping Rich - a TEDx talk on the power of generosity by John Thornton, a professor of accounting ethics

How your money situation influences your mind - Natalie Bacon (The Finance Girl) talks about how money often influences us without our awareness. She's also got some important money lessons for college students!

Here's the toll that student debt can take on retirement - Uh-oh. That's not good for millennials and our finances. Better adopt the Millionaire Mindset and learn to live like a college student! If you're in college right now, these tips can help reduce that debt load!

Lance Cothern of Money Manifesto gets it! With quotable quotes like "Money will no longer dictate what you do with your time," and "The freedom of financial independence is the ultimate financial goal," this article is well worth your time!

Great advice from Will at Growing the Green, especially if you're in a dead-end job with lots of free time! Some hustle and smart time management can get you far!

Ever wonder why financial professionals drive BMWs and Porsches, but their customers don't? See this fascinating interview with a very successful fund manager! Also, the Evidence-Based Investor is a great investing-focused site to follow!

A very astute parable from Mr. FIRE Station (FIRE is capitalized because it's an acronym for Financial Independence, Retire Early. But you already knew that.) The parable can also be found on jlcollinsnh, another good source for personal finance information! The parable is probably older than the hills and twice as moldy, but its relevance will never expire...

A modern parable can be found at Forever Financial Freedom.

Speaking of literary devices like parables, this metaphor works pretty well!

Excellent advice for 20-somethings!

Income-based repayment plans are a good way to keep your monthly payments low when you're just beginning your career. This infographic clearly explains common student debt problems, and how income-based repayment plans can help.

Want to dress like a billionaire? The founder of IKEA says he wears clothes from flea markets!

An interesting take on the approaching mass retirement of baby boomers (Caution: vulgarity herein! Also not sure if I agree with the gloom-and-doom approach, but it will surely resonate with some.)

Monday, January 25, 2016

Links Jan 2015

As always, I want to bring you great content. However, between my classwork, research (this is critically important to make degree progress!), and preparing and refining lessons for the class I'm teaching, work on posts for the blog have been slow. But never fear--several projects are simmering on the burner, just waiting for me to crank up the heat!

I may be neck-deep in schoolwork, but there are many writers out there, and they bring plenty of important information! Here are a few articles that caught my attention recently:

  • A hidden advantage of reaching financial independence:
    http://www.madfientist.com/power-quitting/

    We've all dreamed of sticking it to our employer when things aren't going well! It's very empowering to be in a position that your employer needs you more than you need them...
  • Don't worry about going broke if you try early retirement; Mr. Money Mustache makes the case that it's not really that risky:
    http://www.financialsamurai.com/early-retirement-its-not-as-risky-as-you-might-think/ 

    Some say Mr. Money Mustache isn't really "retired" since he's still doing stuff that earns money. I think the point is that he could lie in bed for the next three decades without lifting a finger, and he'd still be in good financial shape. The concept of "retirement" being where old people sit around nursing homes and wait for death is...frankly, it's not worth working for. So if he's happy being busy, good for him! And if his carpentry and/or blogging makes him money...well, that kind of hustle is why the Mustachian family is in the financial position they're in!

Monday, November 9, 2015

Debt, Retirement, and The Problem With Dave Ramsey

This writer points out flaws with advice from the extremely popular faith-based financial guru, Dave Ramsey: http://frugalvagabond.com/2015/10/12/dave-ramseys-awful-advice/

If you watch the video, you'll notice how quickly he casts doubt on the motives of the person 
who's asking a perfectly legitimate question. This is not the behavior of somebody who is being honest! 
Remember, Dave, Jesus said: "No good tree bears bad fruit."