How I Think about the Fire Movement

One of the more fascinating trends in today’s society is known as financial independence and retiring early.  People are discovering every day the joys that being financially independent can bring.  Not having to deal with toxic work environments, dealing with office politics, and socializing with people you would rather avoid make the FIRE movement laudable. Continue reading “How I Think about the Fire Movement”

What Past and Most Future Millionaires have in Common

A lot of people wonder what it takes so that they can be a millionaire.  For the vast majority of the population, this will come down to the amount of money they can save.  However, the numbers that are thrown out there are not really tied to being a millionaire.  A lot of the time, it is, “save enough to get your 401k match.”  Sometimes it is, “save $100 or $200 a month for your working life.”  Other times it is, “save 15% of your income to replace your income during retirement.” Continue reading “What Past and Most Future Millionaires have in Common”

The Opportunity Costs of Changes for Some Companies’ 401k Plans

There are some news items that should be getting more coverage.  One particular example is that some companies in the US have been increasing the amounts their workers can save in their 401k plans.  The potential consequences for a well educated populace are enormous for securing their retirement.  If done correctly, thousands of US workers, if they are intelligent, can add hundreds of thousands if not millions of dollars to their net worth in retirement. Continue reading “The Opportunity Costs of Changes for Some Companies’ 401k Plans”

An Important Financial Lesson we can Learn from Lebron James

When I think of the finances of professional athletes, I mostly think of the bankruptcies that occur.  Occasionally though, incredible stories shine through.  When I look at what Lebron James has done on and off the court, I am always astounded. On the court, Lebron James is the best player currently playing in the NBA.  Getting triple doubles seems to be almost a given when he wants it.  Off the court, his partnerships with Nike, McDonalds, and other corporations will net him hundreds of millions if not billions of dollars. Continue reading “An Important Financial Lesson we can Learn from Lebron James”

Turning Your Job into Passive Income

Everyone in the world knows the basic concept of a job and a paycheck.  You sell hours of your life at a pre-determined rate to an employer, and depending on the terms, are compensated.  Once compensated, you spend your money on goods and services you want.  If you don’t save any money, or have any money in the bank, you have to go through the process again, and again, and again, and again.  I believe the phrase, running on a treadmill, has been used to describe this phenomenon; particularly if you don’t like your job. Continue reading “Turning Your Job into Passive Income”

Building a Great Fortune

My last two articles about playing financial offense and defense laid out two different pathways to get rich.  If you make six figures, congratulations!  You can live a life off your income with luxuries that would make John D. Rockefeller jealous.  If you are like most Americans though, your road to wealth lies in saving a high amount of income.  If what you want in life is to build a great fortune that will be studied and envied by billions around the world, you have to be able to combine the two. Continue reading “Building a Great Fortune”

Saving Money and Investing When You are Young

There are countless articles talking about saving and investing on the internet.  Rather than talking about how to make a lot of money, most articles focus on saving and investing.  Thomas Stanley, the author of The Millionaire Next Door, referred to this dynamic as playing offense or defense.  In this context, playing defense is saving money and investing when you are young.  The more you can sock away, the greater amount of money you will have.  When you look around the internet, some interesting examples pop up. Continue reading “Saving Money and Investing When You are Young”

What Common Stock Investing Can and Cannot do for your Net Worth

I have dedicated a significant percentage of this site to discussing investing and the wondrous things it can do.  What I haven’t done is touch on what it cannot do.  A long body of academic research in the US has shown that investing in stocks following specific strategies has lead to a higher net worth than investing in other assets such as bonds or real estate.  The pitfall is that unless you had a grandparent invest for you, the wealth stocks will make for you will come at the latter stages of your life. Continue reading “What Common Stock Investing Can and Cannot do for your Net Worth”

401ks and Bankruptcy

I have heard a lot of people talking recently about how they will raid their 401k and other retirement accounts if they lose a job, or are otherwise unable to work.  While I think that kind of self reliance is an admirable personal trait of America, it is one that comes with a lot of costs to those who exercise it.  The reason for this is because many of the courts in the US will exempt your retirement accounts from your bankruptcy filing. Continue reading “401ks and Bankruptcy”