I have read many books on personal finance. The majority were about the quantitive aspect: the data, graphs, statistics, market history, types of stocks and bonds, and the skills needed to construct low-cost diversified portfolios. This book finishes the job by discussing the lesser status qualitative aspect: your thinking and your emotions surrounding money. Both aspects make valid contributions for the eventual, sometimes elusive goal of financial independence, and to be happy at your job and giving back to the greater good.Learn More
If you want a more emotional, personal, and passionate point of view of money, read my review of The Soul of Money by Lynn Twist. It is surprising similar to John Bogle’s Enough book.Learn More
If you’ve got aging parents as well as children of your own to look after, you’re part of the “sandwich generation”. You may want to ensure secure future for both your parents and your kids, the stress of juggling these responsibilities can become overpowering. Retirement is becoming more expensive every day, but have your parents been investing for it?Learn More
The Stock and Bond Markets are up again in the third quarter of 2016. Read how my portfolio has returned 6.7% after nine months. It’s really not complicated because my portfolio is straightforward. It’s constructed to gain when the core asset classes increase and loses value when the market goes down.
Losing is an important part of investing process, if not the most important part. The majority of people don’t understand it because they sell when their investment declines. Never sell, unless it is part of your plan, not because of bear market conditions. Have a plan and stick with it during ups and downs.
I reviewed another investment book. I tell why self-published authors connect better with investing beginners than most of the traditionally published personal finance books found in bookstores. The author follows the sage advice of portfolio construction of Jack Bogle and the investment company he founded in 1974, Vanguard Group. I highly recommend this book. It’s an easy read and gets right to the point.Learn More
It’s that time of the year, the Quarterly Reports. I really hope you find these reports helpful for a number of reasons:
1. Show you how a portfolio of diversified stocks, bonds, and cash looks like.
2. Show how this diversified portfolio performs in coordination with the stock and bond markets.
3. The individual holdings are not selected at random, but for the purpose of doing a specific and important job in the portfolio. It’s always about the portfolio as a whole performing package, not about the individual holdings.
4. Each holding reflects a specific part of the domestic and international stock and bond markets.
5. While some of the stock asset classes have high correlations, stock and bond allocations are not. Including bonds in my portfolio helps preserve my money against a major and lengthy stock market crash. This is known as the stock bond split. My portfolio is 30% stocks and 70% bonds. My 30% exposure to stocks provides enough risk that my portfolio should keep up with inflation (This is not a guarantee, it is part of my diversification and asset allocation plan).
6. This portfolio is an example of a conservative portfolio for a 69-year-old retiree.Learn More