Creating A More Defensive Investment Portfolio With Bonds

Defensive Portfolio With BondsWith Greece and Puerto Rico on the brink of bankruptcy, stock market volatility has returned. Even US Treasury bonds have sold off with the 10-year yield moving from 1.7% to 2.4% due to a strengthening labor market and signs of inflationary pressure on the horizon. Usually US bonds rally and yields decline during times of uncertainty.

Due to such headwinds, it’s getting incredibly difficult to make healthy returns in the stock market. We’re going through an adjustment period as we always do when the Fed plans to raise interest rates. Yet, should they raise soon given the unrest abroad? The US Dollar has already strengthened to 1.16 USD:Euro from 1.4 USD:Euro in 2014.

If I were Fed Chair Janet Yellen, I’d wait to raise interest rates until 2016 at the earliest. Europe will hopefully get their act together by then! This post will review my Motif Investing portfolio and discuss what I plan to do next. Feel free to chime in.

Scraping By On $500,000 A Year: Why It’s So Hard For High Income Earners To Escape The Rat Race

Living Paycheck To Paycheck On $500,000 A Year

Help! I’m drowning from all my money!

I’ve highlighted in a previous article how living off $200,000 a year in an expensive city is really just an average lifestyle. In this article, I’ll discuss how one couple is living paycheck to paycheck while making a combined $500,000 a year.

$500,000 a year is a level which I think is considered rich. Anybody who thinks otherwise has no concept of financial reality. Even the government almost agrees after compromising by raising the income level for when the highest marginal tax bracket kicks in to ~$400,000 from $200,000.

Although making $500,000 a year may sound like a Herculean task, you’ll be surprised to know there are plenty of regular folks who hit the half million mark every year. This article will discuss how many folks who earn a large income won’t be retiring any time soon. It’s quite a juxtaposition from digital nomads who move to low cost areas of the world.

Gay Marriage Rights, Financial Benefits, And Tax Penalties

White House In Rainbow Colors Celebrating Gay MarriageHere are Justice Anthony Kennedy’s words after the Supreme Court voted on June 26, 2015 that same sex couples have a constitutional right to wed. Justice Kennedy was the swing vote.

No union is more profound than marriage, for it embodies the highest ideals of love, fidelity, devotion, sacrifice, and family. In forming a marital union, two people become something greater than once they were. As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death. It would misunderstand these men and women to say they disrespect the idea of marriage. Their plea is that they do respect it, respect it so deeply that they seek to find its fulfillment for themselves. Their hope is not to be condemned to live in loneliness, excluded from one of civilization’s oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right.

When Did Being Rich Become So Evil?

Evil eyes. When did wealth become so evilWith good intention, I proposed one way to help level the playing field through a Wealth Identification Program run by our all-powerful government. By identifying wealthy people who got wealthy through 100% luck (born into wealth), we could empower decision makers to make more informed choices when deciding between equally qualified candidates. Whether a decision maker chooses to help the less lucky is entirely up to their discretion.

The Wealth Identification Program could also put pressure on life’s lucky winners to use their finances to give back to those who need help the most, while pushing themselves to see what they can achieve on their own. Imagine being born with the gift of Mozart, but never realizing your full potential because you didn’t have to. Having money from the start can limit motivation!

With a public wealth ID program, the fortunate will tend to give more and try harder to maximize their potential. After all, when the the boss is not around, why do anything at all?

New Retirement Planning Calculator By Personal Capital

Retirement Life Infinity Pool, Bali Indonesia

Hanging Gardens Resort Ubud, Bali

Do you really know how much you need to retire? A lot of people like to throw out random numbers without really doing the math. One million dollars is a nice round number that often gets brought up for retirement. Unfortunately, $3 million is the new $1 million thanks to inflation in rent, property prices, tuition, automobiles, and food.

Even if you come up with a retirement number, chances are high that your number will change due to unanticipated life events. Maybe you’ll become unemployed for a year and draw down most of your savings. Or maybe you’ll find an amazing new job with a 50% pay raise. Maybe you’ll end up having triplets due to the latest $20,000 IVF procedure when you were hoping for just one baby. Who knows? Life has a great way of keeping us on our toes.

What we need is an interactive retirement calculator that is dynamic, has multiple adjustable variables, and also incorporates real data. Let’s first have a look at some current retirement concerns by the public at large. 

The Digital Nomad Lifestyle Is Worth Living

Digital Nomad Lifestyle, Pulau Redang, Malaysia

Taaras Resort, Pulau Redang, Malaysia

When the world seemed to be ending between 2008-2010, the digital nomad movement took off. Without strong job prospects, people took to the internet to earn a living half way around the world in cheaper locations like Thailand, The Philippines, Malaysia, and Vietnam. For $1,500 a month, you can live like a King or Queen!

So what can digital nomads do to make money online? They can work as a freelance writer, designer, or techie. They can run a drop shipping business that doesn’t hold inventory. They can run an online course or come up with a product to sell. Or they can run an online media company that generates advertising revenue. In short, there are endless ways to make money online. And if your target revenue is only $1,500 a month to live a great lifestyle, then the possibility to live such a life style is higher than you think!

For almost four weeks, I pretended to live the digital nomad lifestyle while traveling to South Korea, Malaysia, Cambodia, and Taiwan. All I needed was internet, and thank goodness internet was everywhere to be found. Over some scrumptious mangoes, I hosted our semi-annual board meeting in Kuala Lumpur, and got to discussing all the takeaways about running a business abroad.

The Health Benefits Of Early Retirement Are Priceless

Game OF Thrones Mance Rayder

One stressed out King Beyond The Wall

Mance Rayder, The King Beyond The Wall once said, “The freedom to make my own mistakes is all I ever wanted.” After three years of being away from Corporate America, his words have never rung more true.

If I wanted more money, I would have stayed in my investment banking job for the rest of my career. But I longed for the freedom to choose after my 13th year. Being absolutely free is priceless. Unless you love what you do, it doesn’t matter how much money you have if you’ve still got to take direction from someone else.

But besides glorious freedom, there are also incredible health benefits I’ve noticed after leaving the permanent workforce. Let me share some with you.