Our Investment Policy Statement (IPS) includes our investment objectives, asset allocation, strategies to control investment fees and taxes, and plans for managing the portfolio. A written investment policy statement is vital to achieving investment objectives. It helps prevent making bad decisions driven by fear or greed. It’s also helpful to have this document to refer…
Investors love to talk about their winners, but you rarely if ever hear about their bad decisions. This selective memory is true across all levels of investors, from people you and I may meet at a dinner party to the most prestigious venture capital funds in the world. I’m going to go against the grain….
Managing your investments is easier than most people think. It does require developing a system to monitor your investments. This enables you to make optimal portfolio management decisions with minimal effort. Let’s look at why you should monitor your investments, what metrics you should track, and how you should track your portfolio…
“I told you these were shadows of the things that have been.That they are what they are, do not blame me!” — The Ghost of Christmas Past from Charles Dickens’ “A Christmas Carol”. I frequently hear from readers haunted by past investments. Many of you are trying to build an investment portfolio that meets your…
I was recently interviewed by Jonathan DeYoe on the Mindful Money Podcast. He closed the interview by asking me, “What was the last thing you’ve changed your mind about?” After my response, he paused and then replied “That may be the best answer I’ve gotten to that question.” As I reflected on the conversation, I…
My initial introduction to the unique benefits of Health Savings Accounts (HSA) came a few years ago. The Mad Fientist published an article titled “HSA – The Ultimate Retirement Account”. After reading his article I filed it away in the back of my mind. To use an HSA, you need to be covered by a…
When I started blogging, I had been investing for over a decade but just learned what an index fund was, had been paying tens of thousands of dollars per year in excessive fees and unnecessary taxes, and was figuring out how to unwind all of my past mistakes. My goal was to make personal finance…
What a wild ride 2021 has been! The news was marked by heightened political tensions, a disastrous end to America’s longest war, and pandemic ups and downs. Economic events included continued massive government intervention, internet forums taking down sophisticated hedge funds, supply chain and labor market issues, and inflation returning in a big way. Despite…
Being a natural saver can put you on the path to early retirement being a viable option. However, that propensity for building a portfolio can make spending from it a challenge. We’ll start with a couple of articles that will give you confidence to spend money in retirement to enjoy the fruits of your labor….
Portfolio voyeurism is what drew me to personal finance blogs. I know what statistics say I should do with my investments. But I love seeing what others are actually doing. I’m not alone. Darrow has long shared his portfolio on this blog. I’ve shared mine as well. Each is popular with readers. So I reached…
I’ve been investing for more than two decades and managing my family’s investments for nearly half that time. Gold has never been part of our portfolio. We never gave it serious consideration. Things have fundamentally changed recently. On a personal level, our portfolio is now several multiples of what it was a decade ago when…
Over the past month, the stock indexes have been extremely volatile. There have been multiple instances when the major indexes have gone up or down more than 10% in a day. Stocks are down considerably overall. Many investors argue that because stock prices have fallen dramatically, this is a great buying opportunity. They’ll back up…
I’m sitting down to write this post at 8:30 in the morning on Monday March 2, 2020. The previous week that ended February 28th was the worst week for the stock markets since the 2008 financial crisis, spurred in large part by fears over the Coronavirus. I normally don’t pay much attention to what the…
A reader, “Joe,” recently wrote: I’ve been a traditional saver my whole life (55 yr old). Meaning I never informed myself on investing and put my savings directly into the bank. About a year ago I started to feel like leaving my job (I haven’t) and wondered how long I could live on my savings….
We write about many topics on this blog. One consistently popular topic is investing. It’s honestly hard for me to wrap my head around why our investing posts are so popular. Darrow annually publishes a post sharing his investment portfolio. Last summer I shared my portfolio and investment policy statement. Our philosophies are similar. I…
For those of us who have a home mortgage, paying it off may not be an option. Either you lack sufficient cash, or retiring the mortgage early would leave you cash poor and vulnerable. Even for those of us who do have the means, the decision whether to pay off the mortgage is unclear. We…
Investment behemoth Vanguard recently published an article titled Fuel for the FIRE: Updating the 4% Rule for Early Retirees. I was excited to see FIRE on the radar of this institution where I hold my investments. Vanguard has a long history of doing what is best for individual investors. I was curious what they would…
It’s time for our monthly collection of articles to help you save more, invest smarter and retire sooner. We share several newsworthy events and announcements that occurred in November. The IRS announced increased contribution and income limits for retirement savers. As market volatility continues, we share a few different perspectives on retiring at a market…
How do you feel about legacy giving? Chances are, you see the issue differently from your own parents. We’re experiencing a generational change in views on inherited wealth. Parents of today’s baby boomers, having lived through a World War and less prosperous times, were usually excellent savers. In their retirement years, their investment assets are…
You can get to financial independence well enough even if you’re disorganized. As long as you’re also smart and creative. But, you’ll reach financial freedom much faster by being organized about your intentions. Sloppiness with your money is no advantage on the journey to wealth. In my last post I discussed the basic financial tools…
The long-term care insurance (LTCI) debate is chock-full of misinformation. Frightening statistics on nursing home care abound: The costs are huge, the odds are high. It apparently adds up to one conclusion: The long-term care decision is critical to avoiding bankruptcy in your retirement. At least, many financial planners and insurance salespeople would like you…
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