Never invest in anything that can kill you. Now I don’t mean cigarettes or other harmful items, but instead making the mistake of investing so much of your capital into one venture that its failure could knock you out. That’s the gist behind diversification. It’s an essential element of a durable portfolio, one designed to […]
We’ve often said time is our most precious resource. More valuable than money, more fleeting than possessions, nothing can be done to stop the spending of our time. But like money and possessions, having too much time can be a bad thing. I’m a big proponent of having an abundance mindset, an approach to the […]
I’ve contributed to the Denver Post monthly for a while now, and I’m grateful for readers who have reached out to me with thoughts, comments, and questions. Some about my writing, the market, and broader topics like the meaning of wealth or improving investor behavior. My goal has always been to encourage a discussion. I […]
How do you measure your wealth? Most people assume there are two typical ways. The first is a simple money calculation that takes everything you own, subtracts everything you owe, and that formula gives you your net worth. Simple. Others say wealth is not a measure of the money one has but of the intangibles such as relationships, time, health, etc.
Two things should matter to retirees and near-retirees: income from investments, businesses, or social security, and how far that income goes to purchase goods and services. Taken in tandem, these elements will define the success of your retirement, offering you freedoms and flexibility in your later years or requiring you to return to work to increase your income.
At a party given by a billionaire on Shelter Island, the late Kurt Vonnegut informed his friend author Joseph Heller that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel, Catch-22, over its entire history. Author Heller responded, “Yes, but I have something that he will […]
Read any financial website, and you’ll find a common thread among the headlines: the market is overvalued. By several historical measures, the stock market appears to be ahead of itself. Valuations are high, and value-focused investors like Berkshire Hathaway Co-Chairman Charlie Munger are calling for a “lost decade,” one in which gains are non-existent while […]
The United States has embarked on a historic economic experiment. Initially, $1.9 trillion was borrowed by our government to fund the American Rescue Plan (ARP). So far, the government has committed more than $5 trillion to support our nation during the COVID-19 pandemic. To put this into perspective, that amount is roughly 25% of the […]
Spring puts me in a mood to organize the yard. It’s nature’s way of encouraging people to clean out the clutter and ready the garden for new growth. This approach is a good way to view your finances as well. Take a step back and look at your financial plan like you look at your […]
Headlines would have you believe COVID has left Americans in financial tatters, but when looking at the broad data, I can’t make the same conclusion. Make no mistake, COVID and the resulting restrictions have left a great many people struggling with their finances. Until we are back to “business as usual,” the situation for those […]
For investors, inflation is the erosion of your money, a “cancer,” if you will. It is the slow, subtle decline in what your money buys or the purchasing power of your money. Last month we covered what inflation is, how it works, and where it may be heading in the future. If you’re unfamiliar with […]
One of the greatest challenges to retirees and investors alike is inflation. Not only is this principle often forgotten, but rarely understood. So let’s discuss inflation: what it is, where it’s been, and where it might be going in the future. How can you as an investor combat inflation over long periods of time, helping to ensure that the purchasing power of your money remains unchanged for years to come?
They say hindsight is 20/20, and as we make the year 2020 hindsight, it’s a good time to reflect. What did we learn? What surprised us? How can we use our past to make our future bigger and better? It was former Secretary of Defense Donald Rumsfeld, who said it’s the “unknown unknowns” that get […]
Investing requires one belief above all others: that generally, the world will be a better place in the future than it is today. It’s a disposition that is often at odds with daily news, political banter, and sometimes our belief system. Yet as investors, we desire to be a part of something that grows over […]
It’s that time of year again when pumpkins start appearing on porches and horror movies are on TV. Halloween is when we indulge in our fear each year. We welcome it into our homes, knowing the temporary fright is sure to pass and make way for turkey and family get-togethers. The human psyche is strange, […]
When a top American business leader starts rattling off reasons to fear today’s market, investors get uneasy. But in the echo chamber of media-made doubt, Jamie Dimon’s recent message got lost. To prepare for the worst, he recommended beefing up reserves, fortifying capital, and stress-testing for varied shocks. He didn’t advise hiding under the nearest desk but rather putting in the work, preparing and carrying on.
