So far in the stock series we’ve examined the market and looked at some sample portfolios built from our two key index funds and cash. Those funds are what we call investments. But in our complex world we must next consider where to hold these investments. That is, in which bucket should which investment go?… [Continue Reading]
Stocks — Part XXVIII: Debt – The Unacceptable Burden
A couple of years after I was out of college, I got my first credit card. They were tougher to come by in those days. Not like now when my unemployed pet poodle has his own line of credit. The first month I racked up about $300 or so. When the bill came, there was… [Continue Reading]
Stocks — Part XXVII: Why I Don’t Like Dollar Cost Averaging
At some point in your life you may find yourself in the happy dilemma of having a large chunk of cash to invest. An inheritance perhaps, or maybe money from the sale of another asset. Whatever the source, investing it all at once will seem a scary thing as we discussed in Part XVIII. If… [Continue Reading]
Stocks — Part XXVI: Pulling the 4%
Courtesy of Fritz Cartoons At some point, if you have been following the Simple Path to Wealth described in these posts, you will be able to choose to have your assets pay the bills rather than your labor. How quickly you reach this point will have much to do with your saving rate and how… [Continue Reading]
Stocks — Part XXV: HSAs, more than just a way to pay your medical bills.
Much has been changing in the world of health care here in the US. While the opinions on these changes vary widely, one thing I can say with some certainty is that the number of people having access to and choosing High-Deductible Health Insurance Plans is likely to increase. These plans basically allow you to… [Continue Reading]
Stocks — Part XXIV: RMDs, the ugly surprise at the end of the tax-deferred rainbow
Illustration courtesy of The Hindu Someday, if all goes well and you haven’t already, you’ll wake up to find you’ve reached the ripe old age of 70 1/2*. Hopefully in good health, you’ll rise from bed, stretch and greet the new day happy to be alive. You’ve worked hard, saved and invested, and now are … [Continue Reading]
Stocks — Part XXIII: Selecting your asset allocation
Life is balance and choice. Add more of this, lose a little of that. When it comes to investing, that balance and choice is informed by your temperament and goals. If I had it to do over, this blog would be likely named The Simple Path to Wealth after one of my very earliest posts… [Continue Reading]
Stocks — Part XXII: Stepping away from REITs
Samsara An original painting by Alex Ferrar* Last week I received a comment from a reader named Paul. In it he asked this very provocative question: “Curious why you view REITs as an inflation hedge any more than stocks are an inflation hedge.” As it happens, that’s a question I’d been pondering a lot of late…. [Continue Reading]
Stocks — Part XXI: Investing with Vanguard for Europeans
Please Note: If you are outside Europe and the US, please be sure to read thru the comments on this post. They have become a valuable forum for investors from all over the world. Who knew? Certainly not I. This all started when I wrote a series of letters to my daughter about financial stuff… [Continue Reading]
Stocks — Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist
Albert Einstein in fine form I like smart people. People who can make me sit back and think, Mmmm. I never thought of that. Or I never thought of that in quite that way. In most fields where I have a lay interest, physics or anthropology or evolution or psychology for example, this is not… [Continue Reading]
