Diversification is said to be the only free lunch in the investment world. If your stock portfolio is heavily weighted toward one company, you can reduce your risk by purchasing shares of other companies. The same is true for asset classes. As your stock accounts grow with regular contributions and gains, your net worth becomes…
Roofstock Review: Build Wealth Through Real Estate
This Roofstock review was updated on 08/27/2020. Roofstock is a real estate property marketplace specifically designed for investors. Real estate investors can search for, analyze, and purchase profitable single-family rentals (SFRs) from the convenience of a computer or phone. Roofstock provides an end-to-end experience that enables investors who live in high cost of living areas…
When to Refinance a Mortgage for Maximum Benefit
A mortgage refinance can be an excellent way to increase cash flow in your monthly budget if the numbers work. But how do you know when to refinance a mortgage? Spoiler alert — it depends. I’ve gone through five mortgage refinances since 2006, and I’m working through number six now that rates are at historic…
That Clutter in Your Home Used to be Money
Useless clutter around the house irritates me every day. Not because it’s in the way, but because when I see unused stuff around the house, I see things that used to be money. And I wish I had the money, not the item. Most items aren’t worth money anymore. Even if they are, they probably…
10 Compound Interest Examples and a Free Spreadsheet
These 10 compound interest examples will take you from the basic calculations to where the magic happens. I first learned about compound interest in my high school economics class, and it immediately clicked. Earning interest on interest seemed like an obvious path to grow wealth. Why wasn’t everybody doing this? It’s not the math that’s…
25 Small Investment Ideas to Cultivate Wealth
There’s no shortage of small investment ideas now that financial platforms are finally catering to investor demand. Many of the asset classes we take for granted today weren’t readily available to beginner investors a decade ago. Access to commission-free online brokers, fractional shares, and innovative exchange-traded funds (ETFs) has broadened the universe of investments available…
Financial Independence Number: Definition and How to Customize
The financial independence number is a benchmark to determine retirement preparedness. It’s also known as the FI number. Financial independence is achieved by: building enough passive income to cover annual expenses, or amassing a lump sum of enough savings and investments to cover living expenses through withdrawals, or a combination of #1 and #2. The financial independence…
How Personal Finance Blogs Make Money
Are you curious about how blogs make money? Personal finance and investing is an excellent blog niche because the demand for financial advice is neverending. It’s satisfying work, as bloggers can positively influence readers by helping them make smarter financial decisions. Writing insightful content can lead to earning money through multiple blog income streams aligned…
AcreTrader Review: Farmland Investing for Income and Growth
This AcreTrader review was updated on 06/11/2020. About 60% of American farms are owner-operated. That leaves about 40% of farmland that’s rented or leased to farmers by landowners. The majority of farm landowners inherited the land and have either retired or have no interest in farming. Since farmland is commonly passed down to younger generations and…
The 18 Best Income-Producing Assets for Retirement
There are two primary ways to self-fund a retirement. 1) Live off of the output from income-producing assets. 2) Drawdown retirement savings by selling investments. My retirement strategy is to combine both methods to diversify my retirement income streams. By spending money from income-producing assets first, I’ll reduce the amount I need to sell in…
What if the Economic Stimulus Doesn’t Work?
The U.S. government is taking extraordinary measures to inject trillions of dollars of economic stimulus into the economy through a variety of lifesaving financial flotation devices. The numbers are staggering, and it’s hard for average onlookers like you and me to comprehend the scale or effectiveness of what’s happening. It’s all so nonchalant, $2 trillion,…
Defensive Tactics for the 2020 Recession
The 2020 Recession is here. Financial decisions we make today will help or hurt us later on. In a recent blog post, I wrote about having an investment strategy as the markets fall. The primary message was to be patient because the corporate fallout from the health crisis is an incomplete story. Q1 2020 corporate…
Gratitude, Optimism, and Investment Opportunities
The negative news is overwhelming if you spend the day consuming it on your phone or TV. My wife worried a lot about the virus and all that’s happening until she deleted Twitter. I’m very comfortable with our new lifestyle. On the first day I worked from home, I came up with a list of…
Investing Strategies in Light of the Market Volatility
Patience is not a skill or an inherent ability. It’s a practice, one that does not necessarily develop with age or wisdom. Successful investing takes patience because as you extend your investment horizon, your chances of success increase. You can’t expect good results in the short-term, but you can expect excellent results 10-20 years out…