Links for September 2020

Link roundup September 2020

Are we still in a recession from COVID?
https://earlyretirementnow.com/2020/08/25/the-shortest-recession-ever-my-thoughts-on-the-state-of-the-economy/

A timely topic:
https://debtfreeguys.com/racism-and-personal-finance/

What's the difference between being 'rich' and being 'wealthy?'
https://www.personalfinanceforbeginners.com/rich-vs-wealthy/

Best current laptop deals, especially for students and bloggers:
    ASUS Vivobook F512DA; $515 on Amazon (reg. $679 for this version)
    

ASUS Vivobook F512DA, a great laptop for students and bloggers

    Lenovo IdeaPad 3 14-inch; $450 on Amazon 

Lenovo IdeaPad 3, a great laptop for students and bloggers

Here's a very good question, with no easy or universal answer:
https://retirementresearcher.com/how-much-should-we-depend-on-the-stock-market/

I've planned to make a post on this myself. Drat! I've been scooped!
https://www.inspiretofire.com/hedonic-treadmill/

An outstanding explanation of why the historic CAPE ratio is not necessarily a good guide for the future:
https://thereformedbroker.com/2014/01/12/leaving-cape-town/

Jose and Tatiana from CrucialWealth were featured on MarketWatch:
https://www.marketwatch.com/story/this-couple-is-one-year-away-from-having-enough-money-to-retire-early-heres-what-they-did-2019-04-01

An outstanding series from LivingAFI:
Pt. 1 https://livingafi.com/2014/05/09/drawdown-part-1-the-basics/
Pt. 2 https://livingafi.com/2014/05/12/drawdown-part-2-simulation/
Pt. 3 https://livingafi.com/2014/05/18/drawdown-part-3-strategy/
Pt. 4 https://livingafi.com/2014/05/28/drawdown-part-4-examples/
Pt. 5 https://livingafi.com/2014/06/03/drawdown-part-5-validation/

Somebody who worked for Lehman Brothers was smart enough to start saving at 23, and saving by choice worked out well for him during economic downswings.
     Did you get a later start than he did? He says, 'that's fine, just start now, and choose to live with an austere budget.' Good advice:
https://www.marketwatch.com/story/have-nothing-saved-for-retirement-follow-the-austerity-solution-2019-03-29?mod=article_inline

What should you be afraid of in retirement? Wade Pfau spells it out:
https://retirementresearcher.com/inflation-deflation-confiscation-devastation-the-four-horsemen-of-risk/

Worried about required minimum distributions (RMDs)?
https://www.marketwatch.com/story/these-rmds-are-driving-me-crazy-what-are-my-options-2019-03-27?mod=article_inline

How Rich are Americans, by Age Group?

How Rich are Americans, by Age Group?

In September 2017, the U.S. Federal Reserve issued a report based on the Survey of Consumer Finances. This survey was based on 6254 families, and the Federal Reserve report broke down the data by age group.

Note that this survey includes a house as part of a household's assets; page 14 of the report specifies "Declines in house prices in particular had a disproportionate effect on families in the middle of the net worth distribution, whose wealth portfolio is dominated by housing."

I've created a graph to illustrate this information, using LibreOffice Calc, a free and open alternative to Microsoft Excel. Here's the graph:

Here's a link to the Federal Reserve report

How the Rich Get Rich

Much has been written about how to get rich, and this pattern will likely persist until the end of the human race. Some of the books and articles are worth your time; many aren't. The ones that are worthwhile, however, tend to be less earth-shattering than we expect.

Is Playing the Lottery Just Cheap Entertainment?

In a brief bit of research into playing the lottery, I saw numerous comments to the effect of, "It's only a couple dollars, and it's cheap entertainment--I dream about what I'd do with the money if I won the jackpot. It may even start a conversation with family members about what they'd do!"

from a pretty good Psychology Today article here: 

https://www.psychologytoday.com/blog/affluence-intelligence/201203/lottery-itis

This left me incredulous and little ticked off, though it took me a moment to understand why. Soon enough, I figured out why that is one of the stupidest justifications I've ever heard!

Here's my explanation...You ready? Here goes:

How Investing Can Make You Rich

Wish you could see the power of money? Wonder how the rich make their money work harder than they do?

Ever felt overwhelmed by some decision, and just picked an option so you didn't have to think about it anymore?  It can be easy to get lost in numbers. And when your head is swimming, you won't make the best decisions! 

It helps to see this kind of junk displayed in a graph. As hard as it can be to imagine how compound interest works, graphs like this can make it easy to understand!

Around the web 2/28/2015

Not all lottery winners are financially irresponsible. Take this woman in Ireland, for example, who is investing her lottery winnings into her hometown (and charities), to provide opportunity for others:
http://www.celebritynetworth.com/articles/entertainment-articles/unemployed-woman-wins-46-million-lottery-jackpot-gives-2-million-away/

Antoine Walker, however, had to learn his lesson the hard way. He now advocates the importance of saying "no." Walker plans to spread this message in his forthcoming book and documentary about his personal financial struggles. (This book and documentary will probably make him another windfall! It seems that he's learned his lesson, though--perhaps he'll hang on to his money this time around!)
http://www.celebritynetworth.com/articles/entertainment-articles/antoine-walker-blew-110-million/


Think Bill Gates is the richest person ever? Think again! Time for a history lesson:
http://www.celebritynetworth.com/articles/entertainment-articles/deeper-look-life-mansa-musa-richest-human-ever-lived/

This is why I prefer Android over iOS...and, really, why I don't recommend buying Apple products: http://www.techtimes.com/articles/35889/20150227/googles-sundar-pichai-calls-out-apple-irresponsible-charge-much.htm
To be clear, I think Apple makes quality products. I also think they charge too much for their quality products, and--like the famous architect Frank Lloyd Wright--don't trust their customers enough.

Excellent advice on how to build a Warren Buffett-like portfolio that puts your money to work for you: http://www.dividendmantra.com/2014/10/create-your-own-miniature-berkshire-hathaway/

And, if you've ever wondered what $1 trillion would look like in $100 bills (US), there's a rendering here: http://www.celebritynetworth.com/articles/entertainment-articles/1-trillion-dollars-look-like/

What Billionaires Know

What Billionaires Know

Since I spend so much time talking about The Millionaire Mindset, it's only appropriate that I discuss what wealthy people understand about finances—and about life!

Image from a blog post at arlinghaus.typepad.com