Who Should Pay For The Wedding? A Logical Guide To Lavish Spending

Winter Valentine's by Colleen Kong-Savage

A Wintery Valentine’s by Kongaline.com

Do you know what’s crazy? Spending $25,000 – $30,000 on the average cost of a wedding in America if you make a median household income of $52,000. What’s worse is going into debt to get married, especially since there’s a 50% chance it won’t last!

In many Asian countries, the parents of the bride foot the entire wedding bill because of the now backwards idea that the husband is “relieving” the parents of the financial costs of caring for their daughter. I can hear many Westerns scoffing at this way of thinking, but before the 1970s it was rare to have dual income households in America. One of my neighbors is a 30-something year old woman who still lives with her 55+ year old Chinese mother. Living with your parents until marriage is quite commonplace for many Asian and Hispanic cultures.

The one thing many Asian weddings have that Western weddings don’t have is the ability to make money during your wedding. I went to my friend’s wedding in Taipei and he actually made about $100,000 from his 50 table, 400 person wedding. The Chinese have a culture of giving monetary gifts in the form of red envelopes during weddings and Lunar New Year. If you are a business associate invited to the wedding, you better give at least $500-$1,000 or else you might not have much business left for the year!

In many Western countries, the parents of the groom pay for all wedding expenses. The thought process is that the groom’s parents are honored to have such a wonderful woman be their son’s life partner to love and care for him through sickness, health, wealth, and poverty. I like this thought process a lot, but as a son of middle class parents who went to a cheap public school, I would feel bad for my parents to pay. But as noted with the many commenters in this post, in America, there’s also a strong tradition of the parents of the bride to pay.

Finally, there’s a growing trend for many lovebirds to pay for the large majority of their wedding cost themselves. Out of the past five weddings I’ve attended, all five were predominantly paid for by the bride and groom. I’ve asked other 25-40 year olds and they’ve said the same thing. Perhaps parents might pay for the venue, or the flowers, but certainly not everything.

One of the main reasons why more wedding costs are born on the bride and groom is because they want their wedding to be a certain way. We’re much more picky and elaborate nowadays it seems. And if your parents are paying for everything, they may put a lot of pressure on you to do things their way instead of yours. This may affect the guest list, the location, the vendors, and more.

Should I Buy Bonds? Wealthy People Don’t

Stocks and James Bond 007 by Marc Tavenier

Stocks and James Bond

Wealthier people in America do not follow the conventional asset allocation model of buying bonds, i.e. age equals your bond percentage allocation or a 60/40 equities/fixed income split. How do I know this? Personal Capital has over 800,000 users of their free financial dashboard to help manage your money and I’m a consultant who is privy to some of their data to share with all of you. Data geeks, rejoice!

Out of 800,000+ Personal Capital financial dashboard users, roughly 165,000 of them have linked investable assets of between $100,000 to $2 million. We call this the mass affluent class, or upper middle class if you’re so inclined. The mass affluent are generally regular folks with mainly W2 income. They save and invest in order to provide for their family, pay for expensive tuition bills, take a couple nice vacations a year, and hopefully achieve a comfortable retirement when all is said and done.

Let’s do a quick review of my proposed stocks and bonds asset allocation model before moving on to the big data. 

The Source Of All Stress In Life: Giving A Giant Crap

Giving A Crap: The Source Of All Stress by grigoria vryttia

Stop taking giant craps in order to be happy

The reason why I got my first speeding ticket going 35 mph in a 25 mph zone was not due to racial profiling, car profiling, or any other type of profiling one likes to conjure up when one gets caught. I got snagged because I was in a hurry to be on time for my doubles match at 6:30pm. I absolutely hate making others wait for me. It’s disrespectful.

If I didn’t care about being 10 minutes late, I wouldn’t have gone 10 miles over the speed limit. I would have taken my sweet sugar time. Maybe I would have pulled over to take some pictures of people’s flower gardens as every other car whizzed by me going at least 35 mph. I’m not bitter, no sir, no ma’am. I mean, of course I was speeding even though it’s impossible to move faster than a pregnant turtle during rush hour traffic in San Francisco.

I’ve accepted the fact that because I gave a crap about people’s time, I broke the law.

From Welfare to Well-Off: My Journey To Financial Independence

The journey to financial independenceThe following is a guest post by Samurai Dominic. He shares his story about escaping the life of trouble and poverty towards one day reaching financial independence. Reading different perspectives is what makes the Financial Samurai community so awesome. – Sam

They say the best time to plant a tree is 20 years ago. You know when the second best time is? TODAY!

As you are about to discover, it doesn’t matter where you start in life, what matters is how you play the hand you were dealt. You can stand around and complain how the world is unfair, and yes it is very unfair…get over it. Complaining and dwelling on your dire circumstances will do nothing to improve your life, so don’t waste your time. The thing to remember is that successful people do what unsuccessful people are unwilling to do.

We live in unprecedented times with more opportunity than any other time in history. You just have to decide if you are willing to put in the work to achieve your vision of success.

You could say I am one of those rags to riches stories in the making. I entered this world like most, in a hospital room naked and screaming. However, I entered the world with absolutely no advantage. Some might say I was dealt a crap hand. I grew up in a low income area, where my family and most other families were on welfare or some kind of government support. Growing up I slept on the hard-floor of my grandmother’s 2-bedroom apartment with my 3 brothers, while my grandmother and mom shared a bed, and my uncle had the other room.

Shit, we were so poor that my grandmother would use the oven to heat the apartment (not cooking for, but cracking the oven door while it was on with nothing in it). That could not have been safe. And to this day I don’t really know if it was actually cheaper to heat the apartment using the oven vs. the actual heating unit. Either way my grandmother was determined it was the best and cheapest way to heat the house.

How Investing In A Hedge Fund Saved My Retirement Portfolio

Retirement is lounging in an infinity pool by Jalon Burton

Reducing volatility from investing with hedge funds in order to relax

One of the benefits of working at an investment bank is gaining access to a variety of investment opportunities that retail investors normally wouldn’t have access to. For example, if Goldman Sachs decided to create a special opportunity fund for institutions because they saw opportunity in the Argentinian debt market, employees would have the opportunity to invest alongside some of the world’s largest money managers like Fidelity, Capital, and Franklin Templeton. Random investment opportunities came up all the time.

After two years as a financial analyst at GS in NYC, I knew my days were numbered as the NASDAQ dotcom bubble burst in March 2000. I remember optimistically telling my VP in May 2000 how I was still bullish on the markets and he sternly told me, “We’re in a bear market. Stop kidding yourself.” Three years later, more than half of my analyst class was let go.

By June 2000, it was clear the NASDAQ was not getting better. I can’t remember exactly how things played out, but I think management sent out an internal e-mail to all employees about how we should keep focusing on our clients – that now was the best time to give them a call or take them out because nobody else was. In the employee memo, management also indicated they had added some new options to our 401k retirement plan, namely several hedge funds that looked to profit from the downturn.

Given some of our smartest and most profitable clients were hedge funds, I decided to do some research and invest half of my 401k into a technology hedge fund, Andor Capital Management, founded by Daniel Benton. Andor was one of Goldman’s largest clients, and they formed some type of partnership where they would let employees invest without needing the $1 million+ minimums. The flagship Andor technology fund ended up returning 35 percent in 2000, net of fees, and my 401k actually inched up in 2000 and 2001 as a result of the hedge fund investment instead of getting slaughtered.

I kept my GS 401k until 2003, despite moving to a new firm in June 2001, due to the investment selection. But after it felt like the markets were out of the woods, and since I could no longer contribute to my GS 401k hedge fund as an ex-employee, I consolidated my 401k balance at my new firm to keep things streamlined. 

How Long Will The Average Person Take To Earn $1 Million Around The World?

The Economist put out an interesting chart highlighting how long it takes the median household income to earn $1 million dollars before tax. Have a look.

How long does it take to earn one million dollars around the world

Given the median US household income is roughly $52,000, it will take roughly 19.3 years for the typical household to earn $1 million gross. That’s pretty good if you think about it. Let’s say you graduate college at age 22. By the time you are 41, you could have earned over a million bucks gross!

But as we know in personal finance, it’s not what you make, it’s what you keep. If the typical household saves 10% of their gross earnings, then one can expect a $100,000 – $200,000 net worth by the time the head of household is 41 years old. Not bad, but certainly no million bucks!

How To Cheaply Build A Diversified Investment Portfolio If You Don’t Have Much Money

Diversity by Kongaline.com

Diversity by Kongaline.com

The rich get rich by buying appreciating assets like stocks, bonds, real estate, and fine art. The people who don’t get rich spend their money on depreciating assets like cars they can’t comfortably afford, and clothes that are never worn more than a few times a year. It takes discipline doing research on investable assets, which is probably one of the reasons why many people don’t even bother.

One of the biggest push backs I hear from readers who want to get rich, but don’t have enough disposable income to invest, is that investing costs too much and is too complicated. This post eliminates one more excuse people have for not building additional wealth.

It’s been a while since I’ve had to carefully watch my cash position, but since I spent a lot of money buying a fixer last year, cash flow is tight. I have a goal of rebuilding my liquid cash hoard to $100,000 in 2015, while also paying off roughly $85,000 in rental mortgage debt. It won’t be easy because I don’t want to cheat by selling assets to pay off debt.

Despite my debt elimination and savings goals, I want to continue investing in stocks and bonds when I see opportunity. With the recent volatility in the market, I see A TON of opportunity right now. Oil and energy stocks have gotten crushed, but aren’t going to zero. Market darlings such as Tesla, Pandora, GoPro, Yelp, and Lending Club have all taken a beating, and I love all their products and services. Interest rates have collapsed, providing a tailwind for a couple industries. I want to invest!

The only problem is, I’ve only got about $10,000 I can spare in this market volatility vs. a normal investment of $50,000 if I want to reach my savings and debt pay down goals.