November Portfolio Allocation

When I posted my November Net Worth Index update, I did not include my total portfolio allocation. I wanted to follow-up and run through this as part of my monthly update. It is always a good idea to do an overview of how your entire net worth is allocated to ensure that you aren’t exposing yourself to too much, or not enough, risk.

I’ve read a lot lately about people taking money out of stocks and moving it to cash and bonds. But is that really a good idea?

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November Net Worth Index Update

The November net worth index update now contains the equity value of my new investment property. I have been looking forward to closing this deal for the past few months and have been working on buying a new investment property for a year or so. Also this month, there has also been a significant increase in the Dow Jones Industrial Average (DJIA) which resulted in a positive move in my net worth. With my extreme investing approach, I expect that changes in the DJIA will cause significant changes to my net worth, for good or ill.

Let’s take a quick look at some of the big changes. I’m excited about the positive movement and hope you are also seeing the benefit to your stock portfolio as well.

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Pay No Taxes Like Donald Trump

I was talking to my brother-in-law about getting started investing in stocks and he asked me about how taxes would be treated. He understands the benefits of using pre-tax money in his 401(k) but wasn’t sure how taxes would work on after-tax money that he may decide to invest in the stock market.

Which made me think about taxes.

And after these elections, I’ve been thinking about how to pay no taxes like Donald Trump! I wanted to write some quick tips on avoiding a high tax burden. I have had an effective tax rate in the low single digits for the past couple years and thought I would share some thoughts on how I do it.

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Buying Another Rental Property: Finally Closed!

I finally closed on my rental property this past Friday. It was a very smooth experience. I was only at about 80% confidence that the deal would close.

My experience with real estate is that you never know what is going to come up. People get lost on the way to the title company, the financing get’s pulled at the last-minute on a technicality, or the seller can get cold feet.

But thankfully, this time none of that happened!

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Dow 150,000 Coming Sooner Than You Think

I believe the Dow Jones Industrial Average is headed to 150,000 very soon.

Does anyone remember the book Dow 100,000 Fact or Fiction? This book was cool based on the title alone. Or how about the somewhat less exciting and provocative Dow 40,000? Both of these books came out in 1999.  The 90’s were such a great time for stocks.

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Habitat for Humanity: A Great Charity

I recently had the opportunity to work on a Habitat for Humanity house. This was a very cool experience because I have never worked on a home construction site before. It was also exciting to get out the office and away from my computer screen. Instead of typing on a keyboard I was down on my knees applying moisture seal to the walls of a basement. Later, I was up on the third floor constructing an exterior wall!

Habitat for Humanity is a great idea! Here’s why.  Continue reading “Habitat for Humanity: A Great Charity”

Buying Another Rental Property: Wholesalers

I recently used a wholesaler to put a contract on an investment property. I also recently failed to put a contract on a different property using a wholesaler as well. So it hasn’t been all smooth sailing!

As part of sharing my experiences in purchasing this new investment property I wanted to discuss the use of wholesalers and my personal experience with them. I think you will find it interesting.

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Blogs More Interesting Than Standard Media

One of the best parts of blogging is reading other blogs. There are so many different personal finance blogs out there that you are sure to find some that are interesting. Each blog reflects the personality and particular interests of its author and there are always new perspectives and topics to read about.

Blogs reflect a more diverse group of perspectives and experiences than standard media outlets because they are not written by journalist professionals. I think this is one of the ways that blogs are better than what you might read in a newspaper or see on television.  To me that is a huge benefit.

This means you are reading articles by people who are putting what they write into practice every day.

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Success Factors for Cricket Similar to Investing

What can we learn about our finances from the game of Cricket? Actually, a lot. There are seven factors that influence how successful a Cricket player will be and these same seven factors apply to investing and your finances as well.

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Why is Beer So Popular in Japan?

I recently watched a funny reality television show while I was flying on a business trip. The biggest thing that stuck out to me was that in Japan, beer is very popular.

By the way, I am usually not interested in television shows unless they are about blue-collar workers or prison.  I don’t know why but those types of reality shows are very interesting to me. Locked up Abroad, Inside the World’s Toughest Prisons, World’s Most Dangerous Prison, Alaska Fish Wars, Alaska State Troopers, Most Dangerous Catch, Ax Men, Swamp People, Mountain Men, and Ice Road Truckers are the types of shows that sucker me in. I really don’t get it. I’m a CPA who likes running and sports. So why am I obsessed with these reality shows?

But the one I watched recently while flying was called “Better Late than Never.” and it was pretty interesting. Another reality show for me to watch…

Which brings me to another strange obsession: the Japanese obsession with beer!

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