Thanks to a great share on Twitter by @Jesse_Livermore, we have this very interesting gem of a chart: Reading between the lines, the Under 35 cohort reveals a fascinating tidbit: a homeless “Millennial” with no assets and no debt has a higher net worth than 30% of his/her peers. Think about that one for a second! Just because you’re in a high (low) net worth percentile, it doesn’t have much to do with your specific financial goals but we all have a conditioned desire to be graded against our peers after all of that standardized testing in school, right? It’s a guilty pleasure in this case – if you’re in an upper percentile, that is. Now that I have you thinking about net …
Brokers are Bogeys
Do I play with custom, self-branded golf tees with cheesy slogans on them? Yes, I do.
What’s Your Number?
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
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…
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 …