About
Dear Readers,
Welcome to Financial Samurai, a place where you can share your thoughts freely on all things personal finance related. Personal finance is a part of everything we do whether we know it or not. There are no topics off limits and all your opinions are welcome.
So many times we are set in our ways of thinking. It’s unhealthy. If we can’t see someone else’s point of view, we’ll end up missing great opportunities and becoming narrow-minded fools. Everyone has something special to offer so don’t be shy.
Financial Samurai has been highlighted in major publications such as Forbes.com, The Wall Street Journal Online, Business Insider, The Consumerist, The Sydney Herald, and The Los Angeles Times. I’ve also done interviews with AARP, Newstalk Radio 910AM and Bloomberg on the subjects of early retirement, mortgage refinancing and structured notes.
ABOUT THE WRITER – THE LONG VERSION
After 13 years of working in Corporate America, money stopped being a driving factor. Instead, living absolutely free became my biggest motivation. I fantasized what it would be like to just write, spend time with family, and travel with no financial worries. Three years after starting this site in 2009, I took the leap of faith.
Retiring early was not easy. Every year since college I saved over 50% of my after tax income. I knew I couldn’t last my entire life getting in at 5:30am and leaving past 7:30pm every day in the world of finance. I used my savings to buy rental property, stocks, bonds, and CDs in order to build passive income streams. When I decided to retire in 2012, my passive income portfolio grew large enough to pay for all living expenses and then some. To learn more retirement strategies please visit my Retirement category.
Financial Samurai’s theme is “achieving financial independence sooner, rather than later.” I believe life speed accelerates simply because we have less time the longer we live. It helps to get our financial lives in order before we can fully live our dreams. This site shares with you my strategies for achieving financial freedom no matter what your age. I also share with you my wealth-building ideas in real estate, stocks, P2P lending, structured notes, bonds, CDs, as well as my adventures in entrepreneurship.
Fun followed by purpose is essential. I write because I enjoy the experience. Readers and your comments are what makes running this site a blast. The better we can communicate, the more complete we become.
Sushi, surprise, surprise is one of my favorite foods and I can watch college football and basketball all day long. I’m an avid tennis player who would play five days a week if my knees didn’t break down. I believe there is a mental to physical connection in everything we do, which is why I try and keep fit given all the writing here. I used to own a $80,000 car and now I own a reliable, 13 year old car worth $3,000 named Moose.
I’ve made and lost hundreds of thousands of dollars in real estate and the stock market. As a result, rebalancing is important to make sure that my risk exposure is not too great. I use a free online wealth manager called Personal Capital to make sure I keep track of all my finances. Personal Capital has been fantastic for tracking my net worth, managing my expenses, and cutting down pesky mutual fund fees in my 401K. Their 401K Fee Analyzer is saving me $1,000+ a year in management fees I had no idea I was paying. The greatest protection I need is against myself, as I am quite an aggressive investor because I ironically don’t need much to survive.
Education is absolutely the key to freedom and wealth. When I graduated from college, I swore I’d never go back to school again. Then the dotcom meltdown happened. Out of precaution, I got my MBA from UC Berkeley’s Haas School of Business.
If all I could ever earn was $65,000 gross a year, I’d be content. However, I make an argument why $200,000 a year per individual is the ideal income for maximum happiness. Without debt it doesn’t take much to live a comfortable life. There are only so many things one can buy, and so many fancy foods one can taste until our tastebuds adapt. Since studies show the poor and rich are equally happy, we might as well strive to be rich.
You can read more about my story from my Yakezie Member Post – Financial Samurai. The Yakezie Network is the largest personal finance and lifestyle blog network on the web. I started the Network in December, 2009 after being rejected from multiple guest writing, staff writing, and carnival opportunities. Sometimes when everybody says “NO,” you’ve got to blaze your own path!
ABOUT THE WRITER – THE SHORT VERSION
* If you were to ask me to define “happiness” in one word, I would choose the word “progress.” Progress in our relationship with loved ones, progress in our occupations, progress in our spirituality all create happiness.
* Loved writing in high school and was the teacher’s pet in AP English. Sadly, I never took another writing course again.
* Scored very mediocre on my SAT, but received an international scholarship and graduated Magna Cum Laude from one the best public schools in the nation.
* Lived in seven different countries and have been to roughly 40 countries as of February, 2013.
* Used to speak three languages pretty well. Now I only speak two languages. My Spanish is horrible.
* Overcame severe asthma as a kid and can now play three hours of tennis at a time. Yet, I still can’t run five miles straight without hacking up a lung.
* Was a 16 handicapper in golf for years until I made it a goal to break 10 one year. I’m currently sitting at 9.8.
* Entrepreneurship fascinates me, but I turned down a golden opportunity abroad upon graduation to work for a golden opportunity in NYC. 13 years after graduation, I’ve now come full circle and am building my online business.
* Series 7 and Series 63 registered.
* Focused on finance and entrepreneurship in business school.
* Can happily sleep six hours a day or less because I’m so excited to wake up and see what happened in the world while I dreamt.
* Get teary eyed every single time I hear the national anthem without fail.
* Everyday feels like Christmas when you’re financially independent.
* Have a goal of sustainably making $200,000 a year while working four hours a day.
* Slowly becoming vegetarian, however, still can’t resist a juicy ribe-eye steak. Also have a tendency to order bacon on the side with my veggie sandwich.
* Butter cookies and lemon meringue pies are my biggest weakness.
* A believer we should take care of our parents in their old age no matter what.
* Fiercely loyal and will always take care of the people who helped out.
* The regrets I will have will be the things I don’t do.
* Wrote a 100-page book entitled, How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye. The book empowers employees with their legal rights and provides a framework for how to negotiate a healthy severance package. Never quit, get laid off.
FINANCIAL SAMURAI SITE STATISTICS:
* 300,000 page views a month.
* 200,000 unique visitors a month.
* Pagerank 5
* mozRank 5.8
* Domain Authority 62
* Page Authority 68
* Alexa Rank ~38,000
* Reader demographics: Majority are ages 25-45, college educated, top 25% income.
* Site Age: 3.7 years
* You can read about the Financial Samurai Value Proposition, where I detail what makes subscribing to and visiting this site a must for all those who are seeking financial independence.
CONTACT ME FOR:
* Advertising opportunities.
* Creating an advertisement campaign by leveraging the Yakezie Network (click link to fill out a simple form).
* Product reviews
* Original guest posts
* Freelance opportunities
Email: financialsamurai at gmail dot com (Publicists, please DO NOT add me to your blast lists)
Glad to have you on our journey!
Regards,
Sam Dogen – “Slicing Through Money’s Mysteries”
Please sign up for updates via RSS , E-mail, or Twitter @FinanciaSamura!
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thanks for commenting on my humble blog. I’ll be following you.
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Hi. Thanks for visiting my blog site. I’ve just read your story. I do hope that I can retire too at the age of 45. I think that I am on the right track.
As you have said, you’re a finance professional and you’ve been here in the Philippines? Are you a Filipino or American?
Anyway, my long term goal is to settle abroad, not here. I prefer US or Europe. I just hope to find a job in finance too. However, with the current economic downturn, I believe that it’s hard to find a job abroad. Perhaps, you can help me in achieving this long term goal. :)
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What exactly is your freedom fund? Is that your total networth or cold hard cash?
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I love this quote: “We’re rich because we’re disciplined and understand basic necessities for financial freedom.” It was very cool to read some of your background and how your life story influences some of your writing.
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wow. i think i should emulate you vis-a-vis about pages. Mine is a mere stub. i like your blog very much btw :)
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Jane – Howdy. The “Freedom Fund” is 100% cash saved by FS since the inception of this site. Thnx
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Tyrone – Let’s just say we’re world travelers and humble students of finance!
Great long term goal you have! We’re glad to help!
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Just stumbled on your site man- dig the name and your story up to this point. Interesting stuff.
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Hi Samurai,
Thanks for visiting my site.
I like your site. The content, the style, the mood and energy are all good.
Your personal story is intriguing and your financial success impressive – and a cash saving of $80K since the inception of this blog, which begs the question, How old is this blog?
Love your attitude too …
You’re on my radar screen via RSS now! Continued success to you.
Best…………valentina
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admin Reply:
November 26th, 2009 at 11:24 pm
Hello Valentina – Thanks for stopping by too. The blog was created in the summer of 2009. Look forward to having you as a regular! Sam-urai
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I totally agree with this >> “I actually really enjoy my job, but I think I’ll enjoy it more if I didn’t need to work!” I too would like to be able to gain financial independence one day. For now, I’m taking it one day at a time.
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Hi.. I always like reading the ‘about me’ page.. and I appreciate your ‘about’ page. it is inspiring and i like the secret tips wealth..
i’ll be visiting u more often
cheers..
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@Rich Money Habits
Sounds good Rich.
@frugal expat
Looking forward to hearing from you more often. Enjoy Dubai!
@kenyantykoon
Have seen you around the blogsphere. Look forward to seeing you here more often!
@SeeJaneGetRich.com
The Freedom Fund is a savings fund I started in June of 2009. The idea is to grow it, track it and reach $1 million by 2020. Let’s see if I can get there! I should write about it more. Perhaps once a month in 2010.
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Hey Samurai,
I really enjoyed reading your story and am a big fan of your blog. You’re an inspiration to us all. Keep up the great, work.
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Hi Samurai,
Thanks for sharing your story- it’s very inspirational. Hope to be in your shoes some day! (sooner than later, hopefully).
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First, I strongly relate to your recent market dive: I was on that same boat ride and sank even deeper in the water than you. Thankfully, I’m in a far better boat now.
You have a terrific blog here. I like the wide breath of it, the way you touch on so many facets of life. I also admire your generosity, your willingness to share yourself with so many. For a blog started only last summer, you’ve come a heck of a long distance. Congratulations!
Savvy Saving Bytes
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Very interesting information, especially your freedom fund. You started it last summer is that correct? You’ve saved an impressive amount! Did you get in on any stocks that were low in early/mid 2009? Sorry if this is the wrong place for this question – I have some stock I am investing in and find it really fascinating.
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@Mike
Thanks Mike for stopping by! Don’t ROTH though! lol.
@youngandthrifty
Thanks for your thoughts. My shoes are just like anybody else’s shoes, perhaps just a different style :)
@savvysavingbytes
Hi Savvy Saving Bytes! Good to hear from you and welcome to the site. Yeah, what a crazy past couple years it’s been financially huh? Good thing is we’re still alive, and I’m definitely going to learn from my mistakes! Hope to see you around!
@Jeremy Johnson
Hi Jeremy, I haven’t elaborated too much on how I built it, but it’s a mix between savings, item sales, dividends, and more income. I’ve ear marked one account as “The Freedom Fund” where I can hopefully build it up to 1 mil in 8 years.
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I love reading “About Me” pages as well, and it seems like you had an interesting journey! I dig how you’re encouraging in your writing, and how you interact often with other commenters. Great site! I plan on stopping by more often!
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I finally got a chance to read a little more about you Sam. Very interesting story. Sounds like you have been to the top and back again. Good goal of retiring by 45. If you miss your goal, you might retire when you are 50, much better than having no goal and wondering if you will retire when you are 65. Looking forward to watching your journey. Hopefully we can both retire by the time we are 45-50 IF we want to.
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I just got here and I’m a huge fan! I’m even following on Twitter. I think you have a great personal story and I look forward to seeing where it takes you.
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Dang…$120,000 gain in 3 months. I’d like to get my hands on a stock like that… :)
Been lurking on your site for a bit now….I like your assertive style. Looking forward to following.
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Sam,
This is the first time I’ve read this. Damn, that stock you bought was crazy!! I’ve heard so many stories of up, then down. But not many sold near the top.
Where do you work, if you don’t mind me asking? And what do you do?
Andrew
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Hey Sam, great “About” page!
I agree with your goal – retiring at 45 is a great “can I do it” goal.
I’ve seen your posts on other sites and finally made the time to stop by. I hope to do it more often. Cheers!
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Dude I’m had a look around I like your style, you speak with a very authentic voice. Not sure i’m quite there yet but i’ll keep trying
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Hey Sam,
I actually haven’t updated my ‘about’ at all since I started the blog. I haven’t yet refined it, but I’m glad to see that people are actually stopping by to read it.
“So many times we are set in our ways of thinking. It’s unhealthy, frankly. If we can’t see someone else’s point of view, we’ll end up missing great opportunities. We’ll also end up being narrow-minded fools. Everyone has something special to offer so don’t be shy.”
I completely agree with this. It can sometimes be difficult to break out of one’s shell or set patterns of thinking, but one’s gotta try!
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Hello,
I was wondering if you could advise me on how I could appear on your blog roll?
Thanks,
James.
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Nice about page! Very positive and very heartily. I love the community that you’ve built around your site. I hope to guest post here one day, I’ll probably search for one of my drafts and see if it would fit your requirements. I want to build my own business before I turn 30, I’m 25 right now and I wanted it badly before I’m 26 but too much rush has only made disappointments. I really enjoy reading your posts and guest posts. They’re very natural and sometimes funny.
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I’ve been reading personal finance blogs steadily since 2006 but have recently felt like I’ve been in a rut, not reading anything “new” and “exciting”. Well now that I’ve stopped by I think you’re my first favorite “new generation” blog, I’m so excited to read more! Thanks!!!
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Financial Samurai Reply:
December 1st, 2010 at 6:32 pm
Courtney, great to hear and welcome to Financial Samurai! I try and just write stuff that I would want to read. Simple formula really!
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Hey! I found your blog through twitter and I’m liking what I see. I’m in my mid-20s and have just started blogging about PF this year. You seem to have a very “Zen” perspective on personal finance. I’m still forming my opinions about PF in general, but I’m trying to share what I experienced with people my age. The more information the better, right? Hopefully, one day I can get to the point you’re at now. =)
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Financial Samurai Reply:
February 15th, 2012 at 10:13 am
Hope your blogging fire is still going one year later!
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Hi,
I just posted my status on FACEBOOK. “What is America’s ‘net worth’?”
I found your article. It was really nice. Good job.
The question is: How many people are we saying possess this avg. net worth?
Theoretically, this should the entire population. But, aren’t there other ‘holdings’ if you will, that would need to be included in this figure? Help me figure this out, and I will tell you why I want to know.
Lars Erickson.
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Financial Samurai Reply:
February 15th, 2012 at 10:12 am
Everybody is average, nobody is average. Average is just a barometer by which you can help measure your progress.
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I enjoyed your article about moving back at home with Mom & Dad. Absolultely HILARIOUS!
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Eric, the Clintons started the mortgage crisis. The dems in power the last two terms of Bushs Presidency (Frank, Dodd and others) claimed everything was okay after Republicans called them out and predicted this housing crisis/mortgage crisis would happen. Bush was asleep at the wheel, Yes! But Obama has given trillions to his financial buddies (along with obscene bonuses). More in his first 59 days than Bush did in all 8 yrs.!!This administration is a disaster for the country.Healthcare- we already have the best socialized healthcare, No one is turned away if they cannot pay. The cost is passed on to those who can. Obamas plan will ration out healthcare where people will die waiting (even those who can afford to pay) and the cost will be passed along to EVERYONE in higher health costs.Education- We need to stop the quotas of passing kids when they cant read, write, speak, add memorize, learn properly, PERIOD. Its the quotas for raises that cause teachers to pass kids whether theyre ready or not. And funding depends on it, etc. etc. And parents are not as proactive as they should or can be.Housing is not a right. Just like anything else in the American Dream, you have to work for it. There is plenty of help out there (at the goodness of Americans hearts, and programs that are govt. funded, and by corporations that get an incentive to Give til its practically ridiculous.-Obamas policies will change charity for the worse.Labor unions while started out protecting people that couldnt protect themselves have become a mobster society. They threaten and bully people and act like common thugs and law breakers. Labor Unions have lobbyists who pay politicians a LOT of money! Its in the best interests of the politicians to get labor unions in everywhere they can. The fact that this will put small businesses out of business, and raise prices at Walmart beyond what families on a budget could affordwill effect everyone adversely.Labor unions can now bulldose their way in and a business owner, and the employees dont have the right to vote privately whether they want this or not. This is dangerous.This isnt America anymore.
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Hi Sam. Just read your post in Yakezie to reach out. I joined the challenge. 3 days in and I dropped from 4.9 mil to 4.5. Not bad for 3 days. Anyway my name is Jai and I have LOVED all that I am learning and reading in the different blogs. Not to mention everyone has been helpful and very nice. Happy New Year if I don’t speak to you by then.
Jai
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Hi FS:
My name is Robert and I’ve been following your blog for a year. I wanted to say thank you as I thoroughly enjoy it.
Here’s my question:
I’m active duty enlisted and have been in for almost eight years. My current enlistment terminates 31 Aug 2014, which would make ten years and three months of active duty. I came in late at 23yo. So, my option is to stay enlisted and retire at 43yo or take a two-three year break; go to nursing school; come back in as an officer; and retire instead at 46-47yo. I’ve already looked into the commissioning while on active duty programs but have already ruled that out for personal reasons.
My stay-at-home wife and I do all the right things. We have no debt except mortgage; we have 3-6 month e-fund; we’ve invested $10K into TSP; have been maxing out Roth IRA through Vanguard target retirement fund.
My thinking is that if I stay on active duty instead of taking 2-3 year break, that’s 2-3 more years to max out mine and my wife’s spousal Roth IRA ($30K) and potentially save up an additional $15K in savings. If I take the 2-3 year break and commission, the difference would really only be made up in the pension. Plus, I would retire 2-3 years later. I know there’s alot of personal stuff in here, but what do you think makes the most sense from a financial standpoint? Thanks – Robert
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Financial Samurai Reply:
February 15th, 2012 at 10:11 am
Robert, nice to meet you. I think you should power on through for the next 3 months. The government is doing away with pensions like they are going out of style. Take advantage as much as you can. The rest of your life will thank you for it!
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Any chance you could publish follow-ups on some of your posts?
Specifically I would be interested to find out about your friend that published a guest blog about whether he should quit his job or not.
Also, I would love a follow-up story regarding your friend that owned a software company and he was going to lay someone off because he thought President Obama was going to raise taxes.
Great Blog that makes me THINK! I agree with you sometimes and I do not agree with you other times – but your blog entries always get me to think.
David
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Financial Samurai Reply:
February 15th, 2012 at 10:10 am
David, here’s a follow up post: http://www.financialsamurai.com/2010/03/29/wealth-is-an-illusion-of-happiness/
My software company friend laid the person off b/c of the fear Obama will raise taxes. Felt best to tighten the belt now, then when he has to.
What are the things you disagree on?
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hey samurai,,im new in the pf biz:),,but i have to say that yours is one of the few pf blogs i actually find the time to look up from time to time,keep up the good write ups !
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Good morning Samurai!! I’ve been having a blast reading your blog as I just happened to come upon it a few weeks ago. I’ve been slowly going through your back posts and it’s a much better read than listening to my family talk about Dave Ramsey. ;)
I actually came across your site searching for a topic that seemingly has very convoluted solutions (or very simply solutions!) Paying off “low-interest” debt versus investing. By low-interest I mean a 2% car loan or 3% home loan. I’ve carried no credit-card debt for the last 15 years so most of the solutions out there simply state “pay off your credit cards first!” or “if you wouldn’t borrow money to invest, you should probably pay down your debt first.” Since we’ve maxed out our 401k, fund our IRA each year, contribute the max to our SPP, and make extra payments on our mortgage – where do we go next? (Yes – it’s a great place to be in and we’re quite fortunate in our savings plan…!) But having our cash sitting in basically a 0.5% savings account makes no sense (when they used to provide 5% – sure!!).
Thanks again for your great site!! I’m now a regular reader as it’s put right up on my RSS reader for me each day!
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Financial Samurai Reply:
March 26th, 2012 at 7:22 pm
Morning! And thanks for stopping by! Glad you enjoy the blog and hope to see you around more often.
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Hi Sam!
I enjoyed reading your revealing About Me post, and I must say, I think you can delete the bullet point about AP English and rediscovering your love of writing. I think you have it nailed, whether or not you love it! LOL
Thanks for starting Yakezie. I’m meeting so many new people through the network…will be joining the challenge soon – I have to fit that in between 2 (soon to be 3) rugrats pulling me in every direction! :)
~Lena
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Financial Samurai Reply:
April 14th, 2012 at 9:33 pm
No problem Lena. Good to hear from you and I hope I see you around the sphere!
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@Dave Schmid
Investment Property. Start buying up single family homes and rent them out for cash flow and operating income. Secure long term fixed rate mortages via the traditional route or build up a list of private real estate investors that can provide short term financing until you can convert it into a permanent loan. Stay away from exotic mortgage terms. Real estate is a good bet right now and will be a great investment now thst the bottom has fallen out. Some gold doesn’t hurt either as inflation will come back at some point.
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Hi Sam, I’m very interested in your knowledge of real estate investing. Do you plan on writing more articles about that?
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What is the best advice you can give on how to recover after bankruptcy, CH13. I am 34, married and together we bring in about $100k/yr. We have 2 young children and because we are still actively going through the “B” word (have about 3 yrs left), how can anyone recover? 401k doesn’t have much in it, home is underwater, and thanks to Obama, I was able to take advantage of the HAMP mortgage program. All a disaster indeed, but we have to look toward a brighter future. We have learned the hard way and NEVER want to go back. We have a smarter outlook on finances, budgeting, etc., but can we recover for a better future? I don’t want my children to make the same mistakes as we did!!!
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Sam, congratulations on your success, and thanks for helping others achieve their blogging goals through Yakezie.
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Ever thought about writing an article about the 1-18 years of saving towards college costs school, boarding, tuition, and total costs. 529′s and such. I am sure not all but many on here have a child and this enters their mind. John Hancock 529 has the best familty calculator I have seen online with school selection. I am sure it would be well covered and read with the pitfalls of starting to late, etc. good luck, just a thought
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Happy Holidays! Just wondering what you think … I have about 350,000 in a 401k at work (mostly stocks)…what do you think about my trading to all cash and then dollar cost averaging over the next 2 years back into stock funds?
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Financial Samurai Reply:
December 13th, 2012 at 4:01 pm
Sounds extreme Jackie. Are you expecting another recession? You can never lose if you lock in a gain though. So, only you can answer such an investment question.
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Ooops forgot to say I am almost 52 and would like to retire at age 62.
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Hi Sam, You’ve got a lot of great work here on this blog, and have shared a lot with many people and I think for that we all owe you a debt of honor in the Samurai way :). I find the blog very inspiring because I also come from a similar high pressure background work wise, though I’ve chosen more of a passive dividend income approach to break free. Here’s hoping totally free in 5 years! By the way, I noticed a reference to Sydney Morning Herald on your website and wondered if you may have been from or spent some time in Sydney? We may have even more in common! I look forward to following your retirement path.
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I’m so glad I stumble onto your blog. It has galvanized my motivation to save again. I have been frugal most of my life, mostly due to having parents who made $12K/year who also had 4 kids to feed. I graduated with virtually no student loan thanks to scholarship.
Today I’m in a decent financial shape, but not where I’d like to be. I make $75K-100K/year, have no debt besides the $24K left on my mortgage. I bought my house almost 4 years ago and been paying as much as I can on it until I hurt. I’m on track to pay it off by mid this year. I have about $75K in 401K and $10K in savings. Your blog encourages me to learn more about savings and investing. I plan to write up a plan on how to become financially independent and execute it. Thank you for the efforts and time you put into this blog. It’s wonderful for financially-minded people. Just really wish this blog existed 9 years ago when I started working. I would have been a lot more financially savy than I am now.
Do you have any advice on how to save more than half of the income like you did? I give some money to family, church, and most go to mortgage and basic needs. No matter how I do my budget, I can’t save more anywhere close to half of my income. I’m thinking of getting a second part time job on the weekend to save up some money so I can invest.
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Financial Samurai Reply:
January 16th, 2013 at 10:00 am
Hi Tina,
Good to hear from you. Sure, here are some relevant articles on saving:
http://www.financialsamurai.com/2012/01/12/24402/
http://www.financialsamurai.com/2012/12/03/how-much-savings-should-i-have-accumulated-by-age/
After you are done, read this: http://www.financialsamurai.com/2013/01/08/how-to-better-manage-your-401k-for-retirement-through-scenario-analysis/
Good luck!
Sam
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Sam – big fan of the site. I was wondering if you’d be willing to share what you’re using in terms of software (WordPress?) and your hosting provider? I’m looking to start my own blog (not finance-related) and was wondering if you had any recommendations or things to look out for on the tech side.
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Financial Samurai Reply:
January 16th, 2013 at 9:56 am
Hi Chad, I use WordPress.org for blog software and Inmotion Hosting for my hosting provider. Good luck! It’s a lot of fun, but also a lot of work!
Sam
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Sam,
What a really great site!
I have enjoyed the income producing real estate sections regarding taxation. Looking to retire in short order as well.
Good on ya!
Keep it coming.
Thank you,
Drew
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hi there, just how many CD’s do you have in order to earn $2800 a month interest? Shopping around myself and am extremely envious. ttfn
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Financial Samurai Reply:
February 7th, 2013 at 3:48 pm
Hi Patricia, it’s pretty straightforward really. To get $33,600 a year in CD interest income, just divide $33,600 by the CD interest rate you’ve found. So if you’ve found a 2% yielding CD, that $1,680,000.
As of 2013, I’m no longer going to be investing in CDs though: http://www.financialsamurai.com/2013/01/23/cd-investment-alternatives-why-im-no-longer-investing-in-cds/
Good luck!
Sam
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patricia Reply:
February 7th, 2013 at 8:02 pm
thanks sam, I knew it had to be a considerable amount to earn that much monthly interest! Unfortunately I ‘only’ have about 150k to invest. I do not need monthly income now but I will have to research other opportunities, if there are any, that maximize returns but minimize risk since its all I have. The percentage rates for cd’s now are a joke, but I have to do something soon; I made a grand total of $16.28 in interest this past month holding it in a MM account.
As for the quick Ally bank et. al. CD’s, should I be concerned when a short term CD pays more than a long term one?
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Financial Samurai Reply:
February 8th, 2013 at 9:20 am
When short term CDs are yielding higher rates than longer term CDs, we call this inversion. This is bad, as people are too afraid to lend out for the longer term due to inflation and/or dire economic circumstances. We don’t have that now as of 2/8/2013.
If I were you, I’d open up a Personal Capital account and run your 401k through their fee analyzer. I’d also use the tool to get a snapshot of how your overall net worth picture is looking. You may find your net worth balance way too conservative. It’s free.
jazzer Reply:
April 12th, 2013 at 9:59 am
Financial Samurai, your comment brings back memories of my Monetary Economics course in undergrad when we had an inverted yield curve, and although my professor acknowledged that this was a good predictor of recession in the past, he suggests that it was going to “be wrong” this time…and then 2008 happened…Oh the memories of an economics professor’s awful prediction…
very excited about this website. it has inspired me to stop being a rounin…
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Greetings,
So about basics and damage control:
Let’s say someone has around 20K in consumer debt across 3 creditors, in consolidation.
Only 2K in saving and 9k in work 401k.
Semi-stable corporate job might pay 58K/year, layoffs possible.
Now a life insurance disbursement comes in at around 23K, pretty sure it is term.
What are some suggestions to get back to financial health? Would they just want to cancel out the debt and work hard with only 3-4 K in savings? Any feedback appreciated, thanks!
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Hello! I just stumbled upon this site today and as someone about to graduate college and enter the working world, I am so glad that you created this site! I also have so much respect for you after reading your about me section. I dream of one day being able to live off of passive income as well… :)
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I just stumbled upon this site, and I think it’s great! As a recent law school graduate with many friends who are hundreds of thousands of dollars in debt (because not only did they take out tuition and living expenses, but binge drinking expenses as well), I sometimes feel like I am on of the only financially reasonable people in my circle of friends. I ended up with a well-paying job, but opened my first IRA when I was 18 (to save what I could, albeit not much). I drive a car that’s even older than yours, and I’ve been called “cheap” by friends and family from time to time. However, I know my financial limits and take great joy in carrying no debt. I like being able to say that I’ve been out of school less than a year and have a positive Net Worth!
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