In general, to invest is to distribute your money in ways that yield returns, usually in monetary value. Saving money is the first step to investing because, without disposable income, it’s impossible to invest monetary funds. Even though you could invest your time, it’s much better to make money work for you. The trick is to be smart about how you invest, ensuring that every dollar counts.

Smart Diversification: 3 Steps to Take With Your Peer to Peer Portfolio

In my last post on Peer to Peer (P2P) Lending, I spoke about how we need to diversify, but we run into a problem if we try to just invest in everything. We have way too many P2P marketplaces, 106 to be exact, and so it is impractical to buy the whole sector. Even if we had the money to diversify across all the loans available in all the platforms, it would not be a wise choice as some loans are just too risky. Instead, we are constantly evaluating the best way to diversify. What do I mean by this? [...]

By |September 17th, 2019|Investments|0 Comments

P2P Lending Platforms: My Experience With Peer to Peer Lending

As our domestic stock market has become expensive, we continue to look for something better. One area HIT revisited in 2018 was the category of fixed income. The high-level overview of an asset class worth more than $247 trillion has since led me to focus on the specific sub-category of peer to peer lending. To my surprise, my sister showed a keen interest in the topic and as I started to dig, I found her in the trenches alongside me. We have since teamed up and researched over 100 different Peer to Peer lending platforms across the world. So without [...]

By |June 14th, 2019|Investments|0 Comments

The Mailbag: CAPE Ratio, Hard Money, and Bridge Loans

One of the many benefits of writing a blog is the challenge of organizing your thoughts and having them questioned. It’s initially scary to put it out there, but as time passes there is a subtle switch from scary to educational. Our interactions have developed into a mutually beneficial relationship of learning. We rarely all agree on financial topics like the efficient market, behavioral finance, and saving till you are blue in the face.  However, your rebuttals, comments, and suggestions expand and test my own understanding, which in turn creates better articles and mailbags.  So, without further ado, our latest [...]

By |December 29th, 2018|Investments|0 Comments

The Story of the T-Bill: Safe Investments Often Lead to Real Losses

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 includes 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|0 Comments