In this article, I am specifically referring to cryptocurrencies - blockchains that seek to facilitate financial transactions and potentially replace traditional money. This is a separate topic from blockchains that provide other uses, which I may address separately at another time. We are currently in the mania phase of a bubble. People who don't understand …
How To Lock Your Credit Report
Should take you less than 10 minutes. Equifax Use this link to reach Equifax's credit report freeze page. They appear to be offering this for free at the moment. Just fill out the forms and be sure to record the PIN they give you at the end. You'll need that PIN to unlock your Equifax …
Equifax Hack
What you can do after the Equifax Hack. Oh Boy Equifax got hacked. They say 143 million accounts had data stolen. Let's be honest: That basically means every adult who has ever had any kind of credit in the USA has had compromising information stolen. This includes the kinds of personal details used to open accounts …
Roth/Traditional IRA & 401(k) Playbook
Short and sweet guide on which to max first. Roth and Traditional IRA Differences Roth IRA Contribute up to $5,500 after tax pay (your take home pay) per year You may withdraw up to the amount you contribute with no early withdrawal penalty - this can double as an emergency fund, but any funds withdrawn …
Cheapest Way To Open IRA
How to start saving for retirement with less than $100 in a tax preferred retirement account.
Tesla Predictions
Some predictions about Tesla and other Elon Musk companies. #1 Tesla will acquire or merge with Elon Musk's promising start-ups We got a preview of this with Solar City. Personally, I was and still am a little skeptical of that acquisition - it felt a bit like a bailout. But, I think we got insight …
Your House Shopping Budget
How much house should you buy? This is a very different question from how much house can you buy. Pre-Approval Process Most serious house buying adventures begin with getting pre-approved for a mortgage so you know how much money the bank is willing to lend you. The mortgage broker or lender looks at your income …
Student Debt Hacks
These tricks work for any kind of debt but can be especially useful for student loans. If you have owned your house for a few years and it has appreciated, you may have a sizable amount of equity. Depending on the amount you owe on your student loan(s), the amortization schedule, interest rates, your income, …
Saving for College
Update 12/20/2017: Coverdells are being phased out by the tax overhaul and effectively replaced through enhancements to 529s. I am leaving the Coverdell ESA section intact for reference purposes. Updates in italics. 529 The 529 plan also offers tax-free growth and is the most widely used way to save for college and now private …
Protect Yourself From Robots
If you listen to the news, Bill Gates, Elon Musk, etc., you may be worried that artificial intelligence is going to take your job. Hogwash While it is certainly true that there are some promising advancements in AI technology in the works, I sincerely doubt that we will suddenly have mass unemployment due to AI …
Preferred Stocks
Preferred stocks have become a popular asset class in recent years. While I think passive investing is the best choice for most people and the evidence shows a majority of active mutual funds and active investors don't beat the market, I do think active investing makes sense for preferred stock. What is preferred stock? Preferred …
Don’t Use 401(k) Loans
It's a bad deal. What is a 401(k) loan? You borrow money from your 401(k). You have to pay the money back in a certain amount of time. It seems like a good idea because you are "borrowing from yourself", the interest rate is usually "low", and it doesn't affect your credit. What's the catch? …
Feed a party for less than going out
It's fun to host a BBQ. As long as you buy the right supplies, you can feed a whole party for less than one plate of food at a mid-range restaurant. Instead of going out to eat with your friends, invite them over for BBQ! The Meat I plan for about 1 lb of meat per adult. …
Bottom Shelf Champions
These are our personal favorite value liquors and how we keep a fully stocked and versatile bar without busting our budget. Don't forget to class it up by using decanters. Also be sure to do blind taste tests to find new champions of your own. Bar Primer Just about any bar you go to has a …
The Best Savings Account Isn’t At Your Bank
Your bank or broker can't compete with this, so you probably haven't been told about it. Today we'll talk about the Series I Savings Bonds from the US Treasury. Even if you think you know bonds and savings bonds bore you, keep reading. These have special features that most people don't know about. They pay …
Continue reading "The Best Savings Account Isn’t At Your Bank"
The Biggest Retirement Account Myth
You can't access retirement account funds before 59 1/2. WRONG! Ask anyone who thinks they understand retirement accounts when you can access retirement account funds. Even the professionals. They will probably say what has been beaten into everyone: "59 1/2 for 401(k) and IRAs otherwise you pay a 10% early withdrawal penalty" They are wrong …
Spending Prison
Spending can be like a prison. It’s counterintuitive. People are usually excited to earn more money because it means they are able to spend more. You can acquire more material possessions, eat (allegedly) better food, and so on. Don’t get me wrong, this is true to an extent. Increasing your earning/spending power enough to move …
Economics of Electric Cars
Electric cars are the future. Depending on your situation, they are also the present. Our Nissan LEAF is our primary car. We also have a gas car that we literally only use if we are driving out of town or if we have a scheduling conflict and need to be in two places at once. …
One Card for Monthly Expenses
Keep all monthly expenses on one credit card All monthly expense that can be paid by credit card without a penalty should be kept on one credit card. And that card should not be used for anything else. Why companies love subscription revenue Monthly subscription revenue is great for businesses because the installment amounts are …
Overrated Emergency Funds
This should be controversial. Disclaimer This assumes you are pretty far along on your net worth accumulation. You aren't ready to retire yet but you do have substantial stock investments. By substantial, I mean perhaps over $100,000 saved in a margin stock account or well over $100,000 equity in your home. Purpose of Emergency Fund …
Turn Large Expenses into Vacations
When life gives you lemons... Unplanned expenses You need expensive dental work done, a new air conditioning system, you are signing up for life insurance, or you have an expensive car repair coming up. It sucks when you have to spend money that you weren't planning on, but you can at least make the most …
How Debt Works
Understanding how to think about and manage your debts is key for financial security. Debt requires monthly payments, and that reduces your cash flow. Some debts carry additional risks. For example, if you lose your job and don't pay your car loan, you will be taking a bus to your job interviews after your car …
Rent or Buy
When people first start thinking about buying a house, they often mistakenly compare the cost of a loan for a house to the cost of rent. Then they think they are being ripped off on their current rent and that they should go buy a house ASAP instead of "throwing money away on rent." The …
How I Buy Cars
How I buy cars Many people have negotiating tips and suggestions on how to buy cars. There are many ways to do it. Here is how I do it when buying from a dealer and it has been successful so far. This method works best when buying a new car or if there are substantially …
Foundational Money Concepts
The key to financial security is having enough money to live on for a long time. Maybe you want to retire early or maybe you don't want to worry about money. Maybe you want to be able to take some risk like a second career or work for a start-up without financial stress. At the …
Responsible Use Of Balance Transfers
What is a balance transfer? Credit cards come with a limit often referred to as a revolving limit. You go to the store and swipe your card and as long as your outstanding balance is lower than the limit + new charge it goes through. Some credit cards also have a feature called a balance …
Stoicism in market declines
Nassim Taleb wrote a great book called "The Black Swan" about unpredictable events (black swans) including stock market crashes. It's an easy read and I would recommend it for anyone who invests. Without spoiling the book, one takeaway is how watching the daily volatility of the market can trigger emotional responses that lead to stress …
Save money with decanters
Alcohol is bad for your health and costs money. If you can drink less or never start drinking, that's ideal. Depending on your tastes and how much you drink, you can easily spend as much as maxing out an IRA contribution for the year. Find better values through blind taste tests We adopted the practice …
Residential Solar ROI
There seems to be a lot of misunderstanding about solar and how to evaluate if it is economical for you. In this article, I seek to clarify how to make this decision. It Really Does Vary It is cliche on finance blogs to say that everyone's situation is different. In this case, it really is. …
Investing Basics
There are so many different ways to invest. What matters at the end of the day is that you let your savings work for you. When you live frugally and have surplus funds, you need those funds to earn more for you. There are endless books and online resources that specialize in the seemingly infinite …
Save half your money, work half as long
Try, save half your money and only work for 13 years. I haven’t always saved half my income, but I have always saved more than the average American. Often in the 10-30% range at the low end. When using online tools such as the “retirement checkups” offered by many online brokers and retirement plans, they …
17 Steps to Clean Up Your Finances
Financial Checklist Any good business needs to get revenue and also needs to control expenses in order to be profitable. Personal finance is no different. You went to school and have some kind of career and that gets you revenue. You have some influence on your revenue but you definitely can control a lot of …
Introduction
Saving and investing has always been important to me. Over the years we got sidetracked from time to time. Our planned retirement horizon was the classic 40-year career, so it was no big deal to splurge as long as we were on track to retire in our early 60s. But, why wait that long? With the …
Pulling Pork 