Personal Finance2018-09-20T19:10:53+00:00

Personal Finance

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“Safe” Investments Often Lead to “Real” Losses – The Story of the T-Bill

When studying finance in preparation for the Series 65 exam there was an emphasis on specific investment objectives. The "safest" investment objective was "Preservation of Capital" and its primary goal was to prevent loss.  Preservation of capital investments include Treasury Bills (T-Bill), certificates of deposit (CD), savings accounts, and money market accounts (MMA).  These holdings are classified as the “safest” investments and are often insured against absolute loss.  In industry lingo, they generate a “risk-free” rate of return.  But before we take it as so, and solidify the link between "Preservation of Capital" and "risk-free" in our brains, let's see [...]

By |April 23rd, 2018|Investments, Personal Finance|0 Comments

Buy Smart, The Mental Purchasing Model in 7 Steps

This year has been full of firsts.  It was the first year we started as a family of 5, first time we moved cross country and into a new home together, first time we lived through a hurricane, and first time we re-modeled our home.  With these firsts came forth multiple opportunities to spend large sums of money. We purchased: a mini-van a new home home re-model an 11 unit rental complex 2 angel investments additional equity in HIT Capital Each one of these purchases could significantly shorten or lengthen my family’s path to financial independence. The last three may [...]

By |November 20th, 2017|Behavioral Economics, Personal Finance|0 Comments

The Death of Procrastination

We all put off unpleasant tasks.  In surveys 95% of all people admit to procrastinating, with about a quarter of them saying it is a chronic, defining characteristic.  Our innate human behavior is to put off less appeasing tasks regardless of importance.  I struggle at times to get out of bed, to tackle mundane tasks, or to get my workout in.  I even had an urge to delay writing the article you’re reading today. It’s unfortunate the consequences or benefits of procrastination are many times unknown.  Fortunately, in the investing world, the numbers paint a clear picture.  For instance, if [...]

By |June 12th, 2017|Behavioral Economics, Personal Finance|19 Comments

18 Reasons to Eliminate Debt

Happiness – The overarching reason why we want to become debt free is that it can lead to increased happiness. Here are 18 reasons for getting out of debt and how it can lead to a happier life: Complexity – Eliminating debt reduces the complexity of your monthly finances. No debt, means no more: tracking home mortgage interest in preparation for taxes, worrying if your adjustable interest rate will go up, and ensuring your loan payments are sent on time. Stress – The burden of borrowing and having to pay someone back is taxing on your mental health. Proverbs 22:7 [...]

By |May 9th, 2017|Personal Finance|17 Comments