This article takes off from the groundwork we established in Part 1. In writing this series, I have started with the well-supported premise that over the long-term, equities are the best asset class to remain invested in. In addition to my article on the efficient frontier, there are several excellent books and good resources on […]
Saving regularly and having a zero or manage-ably low debt are important prerequisites for efficient long-term investing. You can’t think of investing until your savings is building up. If you are a diligent saver or have sizable funds already, this series of articles is for you because it is about investing those savings. After you are […]
This website is fortunate to have high quality of visitors, based on what the analytics tell me. TFR is also fortunate to have a global audience and people from various industries (both working and retired). So, I am counting on your advice in this post. This is my first attempt at discussing a specific stock holding of mine. […]
Whether you invest in the stock market via index funds or individual companies for your retirement, the success of your investments depends on the profits of publicly-traded companies. As Benjamin Graham said, the stock market is a weighing machine in the long term and only a voting machine in the short term. What it […]
Opportunities in life are like a train in an impoverished country. You better get on it whenever you see one going in the direction you want. Otherwise, you don’t know when the next one will come!
This post is a confession of my screw up where I passed on a rare chance to retire early….real early. Read this tale and avoid the mistake I made, so you can catch the express train to early retirement. Otherwise, you never know if it will stop by your station again. (more…)
Fear is everywhere. Our politicians scare us about a doomed future if they aren’t elected or if any of their policy proposals are rejected. TV reporters paint fearful pictures of our communities, our nation and our world by the images and news that incite fear and negativity – right in your home’s 75 monstrous inches of full HD 1080p resolution […]
This is not a topic you hear about much in mainstream finance. Even if you understood the efficient frontier and also that risk and reward are probability-based, there is a fundamental difference in our approach to risk that mainstream financial planners don’t bother to even ask. This is about risk tolerance vs. risk affordability.
We spend a lot of effort chasing our number or desired passive income to reach our financially independent or retired early (FIRE) dream. In all the search for ‘how much’, we also need to consider ‘how long’. With some retiring in early 30’s, the impact of this extreme early retirement should be carefully considered. If you are like me in 40’s or even in 50’s, there is at least one advantage we have over our 30’s retired brethren – our retirement planning is not as long. Don’t let that depress you. It’s the life you add to the years, not the years you add to life that matters! As Yoda would say: matter it doesn’t!
This post takes off from what I read in Millennial Revolution about a million dollar house-poor owner in Toronto, Canada. The inference is similar to what I experienced personally in Washington DC. We Americans and Canadians love home-ownership, and so do Australians from what I have heard. In my business trip to Spain recently, I learned Spaniards also cherish home-ownership almost as a cultural mandate. Then, I started wondering whether all this only holds true in large developed markets or does it apply even in developing markets. Perhaps only the developed world is living with contagious house fever?
English is an interesting language. We bring financial concepts into daily expressions and vice versa. All the English-speaking countries in the world trace their English language origin to some connection, if not a straight colonization, to The British Empire or the East India Company. Many of the old British expressions have survived centuries and are used even today in many countries that have historical connection to the language. This post takes an old British expression, back to the days of William Shakespeare (The Bard), that a good venture “pays rich dividends”. Even as a poet, he knew about the rules and ruthlessness of business, seen in his classic The Merchant of Venice.