Young People: Please, Pay Yourself $141,169 in 2044

Tyler Linsten Investing, Personal Finance

If you absorb nothing else from me, or this blog, just make it this post. Only young at heart? This still applies to you, too.  Important choices about how you allocate your retirement savings could very well be worth millions of dollars in the future, depending on your income level. Future You will really appreciate you making the right call here. I’ll explain below but it’s really nothing more than the most important force in the financial world: compound interest. Learn about it, love it, it’s your new best friend always and forever. Let’s say you’re 30 years old and you have committed to starting your retirement savings today. Let’s also say you’re a good saver and, on average, will be able to save $7,500 …

Diversification Is…

Tyler Linsten Investing, Personal Finance

Doing the laundry. Taking out the garbage. Taking your medicine. Feeding your dog. Feeding your young child. Stopping at the stop sign when nobody’s at the intersection. Paying your car insurance premium. Taking your vitamins. Visiting the doctor once a year, every year. Visiting the dentist twice a year, every year. Visiting your in-laws. Mowing the lawn. Brushing your teeth. Taking notes when you think you know the content. Letting that guy merge on the freeway. Eating a salad instead of a burger. Changing the toilet paper roll. Doing the dishes right after dinner. Paying attention in the safety meeting. Calling your grandmother. Sweeping the sidewalk in front of your house. Holding the door open on a bad day. Checking your …

A Good Day for a Step Back – Q3 Client Letter

Tyler Linsten Client Letters, Investing

Sure, markets had their worst day of the year today. Every year has to have that day. Why not today? Maybe there’s another day in 2014 out there waiting to top today. I’m OK with that. You should be, too. In terms of a long term investor’s portfolio, days like today mean almost nothing. Unless it’s your Mom’s birthday (like mine – Happy B-day, Mom!), then October 9th, 2014 will go down as another bump in the road on a ride that lasts decades. Every year will have a worst day, as well as a best day. If you’re a reader here you might have picked up on the fact that I think paying attention to the day-to-day rumblings of …

Zoom out, Says Ron Burgundy

Tyler Linsten Investing

Markets have shown some volatility lately. Possible culprits are Ebola, Hong Kong protests, ISIS, problems in Europe and the lists goes on (as it always does).  The important thing to remember is that fluctuation is to be expected, but we mostly just don’t remember what it’s like. If it feels like your portfolio has been obliterated then it’s quite likely you have been spoiled by five years of gains and just need a bit of perspective. No one is free of emotional bias – small losses today feel much bigger than they really are, but that’s completely normal at this point. Let’s take a look using the S&P 500 Index ETF, SPY: This first chart might sum up how you’re feeling lately. Nothing …

Always Read the Label

Tyler Linsten Investing

Or, Alternatively, Fun with Pictures! — You’d never put something in your body before knowing what’s going in, right? Yet, similarly, why do investors sometimes spend huge portions of their precious savings into investment vehicles they know very little about? Simply put, the creativity of marketers has spread beyond the pharmacy. Just like any medication, it’s always wise to know exactly what’s going into your portfolio BEFORE you buy it. Have you heard of NyQuil’s latest miracle sleep aid, ZzzQuil? This achievement of modern medicine is no achievement at all – check out the labels to see why: Non-habit forming – sounds good so far! But what’s in it? Active ingredient: Diphenhydramine HCl 25mg. Sounds sophisticated enough to help me get to …