Have you heard advertisements about creating lifetime income for a secure retirement? I’m always skeptical about annuities because they are so confusing, even for those of us who pay attention. It turns out that the term “lifetime income” is a marketing phrase intended to demystify annuities by highlighting their primary benefit. Unfortunately, a PR campaign…
Thanks to everyone who responded to the recent book giveaway. Your encouragement and kind words were uplifting. The responses gave me lots of topics to focus on in 2025. I received 104 responses. Congrats to the winners. Also, a few weeks back, I asked for your help in getting me over the 1,000 subscriber mark…
Though opinions vary on individual stocks vs. index funds, my own investments reflect a blend of both, from dividend and growth stocks to index funds, ETFs, and managed mutual funds. My uncle gave me one share of Chevron for my 20th birthday in 1995, and I built an individual stock portfolio from there. A retirement…
The minus your age rule of thumb is a simple math formula used in personal finance to help DIY investors and advisors determine a suitable stock-to-bond ratio for an investment portfolio. I’ve always referred to this as the 130 minus your age rule of thumb on this website, but that only tells part of the…
I’ve been investing on the M1 Finance platform since 2017. I was attracted by the intuitive way investors can design their ideal portfolio first and then fund it over time. This method differs from the traditional way of investing excess cash flow — buying individual holdings every month or so. With M1 Finance, any time…
TD Bank interviewed me on this topic. Check out the interview on YouTube or below. I’m 48. It’s been 28 years since I invested in my first stock. Twenty-eight years from now, I’ll be 76, about the same age as my parents. My parents recently fired their financial advisor and asked me to assist in…
The Bitcoin ETFs have gotten a lot of media attention recently. After years of contemplation, the SEC finally approved several “spot” Bitcoin ETFs (exchange-traded funds) for trading on stock exchanges. They include the following: Here’s a more detailed look at Bitcoin ETF fees. ETFs make it as easy as stocks to own and trade assets…
This article explores reasons to own ETFs vs mutual funds. Between stocks, mutual funds, exchange-traded funds (ETFs), and alternative assets, we now have countless ways to invest our money more than ever. Though more options are better overall, the choices can be overwhelming. About 7,400 mutual funds and 3,000 ETFs are listed in the U.S.,…
Doing taxes is never fun. But each year, I find that our income has become more diversified than the previous. We now earn more than 7 streams of income — not counting my salary. A salary is great if you don’t mind full-time work. But it can become an unhealthy addiction. You can break the…
I’ve maintained a long-term buy-and-hold investing strategy since about 1995. The month-to-month details have changed quite a lot over the years, but the basic principles are mostly the same: Invest first, spend second Max out tax-advantaged accounts first Invest in taxable accounts second Keep transaction costs and stock sales to a minimum Diversify income streams…
Over the winter, I had a large maple tree cut down in my backyard to make room for a shed. The cleanup required several multi-hour sessions of chopping and stacking firewood. Podcasts helped to pass the time. I’ve listened to the Rule Breaker Investing podcast for a few years, but not as often since the…
Smart money habits will help you reach your financial goals, with patience. Most of us aren’t looking for extravagant wealth. We want sustainable and long-lasting wealth that provides financial security for our families and enough money to fund our desired lifestyle. That kind of wealth is more attainable than most people think. But there are…
Over the past 12 months, I’ve added a few municipal bond ETFs (exchange-traded funds) to my taxable investment portfolio. I’ve done this to diversify my dividend income and reduce taxes in non-retirement accounts. These investments are easy to buy, have low volatility and risk, and provide monthly dividend income. I use the monthly tax-exempt income…
The U.S. government is borrowing $1.9 trillion to provide pandemic relief and stimulate the economy. A big chunk of that will be direct payments to Americans. I won’t get into the details of who gets what; you can find that here. Long story short, many Americans will get more than a thousand dollars deposited to…