What’s Your Number?

Tyler Linsten Personal Finance

No, not your phone number. Not your social security number. Not your license plate number. Not your portfolio’s value. I want to know how much money you need every month, on average over the coming year, to fund your lifestyle. I know mine and you should know yours. Especially if you’re in or near retirement. You should be able to recite this number on demand. This is your number. There are many like it, but this one is yours. Tally up EVERYTHING you’ll spend money on in the coming year. The staples like housing, groceries, gas and insurance are the easy ones. Next, add the discretionary/random items like vacation, a non-zero amount for medical expenses, eating out and spending on entertainment. …

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 …

Money + Emotion = Less Money

Tyler Linsten Investing, Personal Finance

Or, Why It’s Never Smart to Trust Blanket Statements, Built upon Emotional Bias, on Investing When it comes to allocating savings (aka Investing), a surprising amount of reward will come from the decisions you don’t make. Not sure what to do? Try doing nothing.  In most instances nothing is very much something. Markets should be considered to be one of the most manipulative, conniving and destructive forces in existence – and guess what, the psychological/behavioral interference they create have a direct line to the levers you pull when making important decisions about your money. Needless to say, this is a very dangerous combination. Hence, the title of this post: Money + Emotion = Less Money. Even the smartest participants will inevitably make wrong decisions at the absolute worst times. The best …

Patience

Tyler Linsten Investing, Personal Finance

What does a picture of a sunset have to do with investing? Quite a lot, in my book, actually. I’ll quickly elaborate. I live in a very scenic area of Seattle near Alki Beach so I find myself lucky enough to be in place to view a lot of beautiful sunsets. My phone’s full of sunset pictures. Most of them are just average, a few are pretty forgetful but then there is the picture above. It’s an absolute masterpiece. I may never again capture something so amazing. Yet, most importantly, I’ll keep trying. This process is a lot like investing. It has parallels to a tenet I hope my clients are sick of me talking about: staying focused on the long-term. Keeping your portfolio …