A Bond Yield Table Makes It Clear Which Duration You Must Choose

Hopefully, everybody has been building a CD Step Stool or a Bond Step Stool (not a ladder) in this rising interest rate environment. A Step Stool is the smarter approach because the short end of the yield curve has been rising faster than the long end. The Fed Funds rate is the shortest of the … Read moreA Bond Yield Table Makes It Clear Which Duration You Must Choose

2019 S&P 500 Price Targets By Wall Street Strategists Are Mostly Bullish

There’s a lot of uncertainty as we head into 2019. The Fed is expected to raise rates another three or four times. We’ve got a slowing housing market thanks to rising rates, rising inventory, and lower overall affordability. We also have constant geopolitical risk that never seems to go away. As investors, we must properly … Read more2019 S&P 500 Price Targets By Wall Street Strategists Are Mostly Bullish

Patient Capital: The Key To Long-Term Wealth Creation

Liquidity is overrated. Once you have about six months worth of living expenses saved, there’s really no need to hoard even more cash since you have insurance. If you do accumulate more cash, that’s called “cash drag” because cash returns have underperformed assets such as stocks, bonds, and real estate since the beginning of our … Read morePatient Capital: The Key To Long-Term Wealth Creation

How to Prepare Your Money for the Coming Economic Slowdown

Predicting an economic downturn can seem as mystical and convoluted as reading tea leaves. However, the economic tea-leaf readers — financial experts — are warning that the economic winds are changing. Even though unemployment is still low, there are other economic indicators causing…

Short-Term And Long-Term Capital Gains Tax Rates By Income

If you need more incentive to generate passive income in order to give yourselves more freedom to do what you want, then look no further than the below two charts. The short-term capital gains tax rate is equivalent to your federal marginal income tax rate. Once you hold your investments for longer than a year, … Read moreShort-Term And Long-Term Capital Gains Tax Rates By Income

How Projection Bias Could Be Destroying Your Finances

Have you ever gone grocery shopping on an empty stomach? If you’re like most people, you come home with all kinds of random junk food and disparate ingredients you have no specific plans to use, all because they looked good at the time. So when you decide to throw some “lightly…

Suggested Stock Allocation By Bond Yield For Logical Investors

With interest rates rising across all treasury bonds, there comes a point where owning bonds becomes more attractive than owning stocks – where you’re willing to have a greater than 50% weighting in bonds in your portfolio. After all, treasury bonds offer a guaranteed return if held to maturity and they are state income tax … Read moreSuggested Stock Allocation By Bond Yield For Logical Investors

Financial Samurai 3Q2018 Investment Review And 4Q2018 Outlook

Out of the 25+ financial accounts I track online, there are only two accounts that I really care about at the moment: 1) My after-tax investment account I created in 3Q2017 after I sold my SF rental house. 2) My real estate crowdfunding portfolio that has mostly investments outside of expensive coastal cities. I care … Read moreFinancial Samurai 3Q2018 Investment Review And 4Q2018 Outlook

Personal Lessons Learned Since The 2008 Financial Crisis

On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered. Despite all the … Read morePersonal Lessons Learned Since The 2008 Financial Crisis