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 [...]
The day after our home flooded, I went back for a few essentials that did not make our initial rescue. The trip began with a friend and I sitting in traffic for 2 hours trying to cross the flooded bayou and finished with us wading through dirty water for about a mile. As we came around the last corner and I saw our home, it hit me, I had I forgotten the house keys! Sure enough, after wading through the last 100 feet of water the front door was locked; the side door was locked; the garage door was locked; and [...]
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 [...]
As Hurricane Harvey began to move East so did the waters gathered in the reservoirs North and West of our home. After 4 days of torrential downpour the hurricane had moved on. The sun was shining. Then we fl......
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 [...]
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 [...]