Dear Financial Samurais,
We just got back from five days in Lake Tahoe to participate in our neighborhood’s Easter egg hunt, and it struck me how much it mirrored real life.
The organizers split the hunt into three age groups—2–4, 5–7, and 8 and up—to try and create some sense of fairness. But in the final group, it was a free-for-all where anyone could join. No cap on how many eggs a kid could collect. And, predictably, the biggest, fastest, and most strategic kids walked away with over 30 eggs each. Meanwhile, the smaller or less experienced ones barely picked up five.
What stood out most was that the kids with the most didn't share, except when prompted by their parents. It was a comical yet sobering reminder that life isn't fair. Effort alone doesn’t guarantee success. Instead, it’s often those who are already ahead—and who keep putting in effort—who surge even farther ahead.
This is one of the core reasons I’ve been sharing everything I can for free since 2009. If more people have access to financial education, perhaps we can help level the playing field—at least for those who care enough to take action.
A Reminder of How Volatile Stocks Can Be
My dip-buying in the market has slowed because the S&P 500 has bounced from 4,850 and trade tensions continue to weigh heavily. Consumer and corporate confidence is down, and the full effects will start showing up in earnings and spending data soon. A recession now feels increasingly inevitable.
Then came Friday—when United Healthcare (UNH), one of the biggest players in the market, plunged 22%, accounting for over 500 points of the Dow's decline. If there’s one company that has profited handsomely off consumers by denying legitimate claims, it’s UNH. And yet, even they got crushed by a massive earnings miss and weak guidance. Say it ain't so.
Despite paying $2,500/month in unsubsidized health insurance premiums to UNH, my wife and I have run into frustrating denials for legitimate claims. We are not fans.
If a company like UNH can drop over 20% in a day, it's a stark reminder that no company is immune. That’s why earning ~4.3% yields from Treasury bonds, while collecting steady rental income from real estate, feels more appealing now than getting aggressive in equities.
If you’re feeling nervous too, it's time to quantify that feeling. Check out my latest post: How to Determine The Right Amount of Stock Exposure. It’s a simple yet effective way to understand your true risk tolerance, before the market teaches it to you the hard way.
Buying a Home During Uncertain Times
Real estate is outperforming stocks year-to-date—not because it’s booming, but because stocks have done poorly. Still, higher mortgage rates and falling equities are weighing on buyer confidence.
Yet pent-up demand is building. The median age of first-time homebuyers hit 38 last year, up from 35 in 2023, and nearly a decade older than in the 1980s when the average was just 29, according to the National Association of Realtors. More capital is also rotating out of stocks into more stable assets like real estate.
Eventually, life goes on and many folks will decide to buy a home, even during uncertainty. That’s why I wrote: How To Survive The Most Dangerous Time After Buying A House. It's about the often-overlooked stress and emotional roller coaster that comes during the first year of homeownership.
After we bought our latest home, I felt 50% more stressed for six months, despite being financially prepared. In fact, I’ve felt this way with every home purchase. It’s intense, but it does get better. If you can survive the first year, you’ll start to feel the joy of ownership more than the anxiety.
The Final Stretch Of My Book
In just two and a half weeks—on May 6—my latest book, Millionaire Milestones: Simple Steps To Seven Figures, officially launches. I’m both excited and a little nervous to see how it will be received. It took over two years to write and edit, so there’s been a lot of love and care poured into every chapter.
Think of it as a modern-day version of The Millionaire Next Door, published in 1996 by Thomas J. Stanley. That book had a profound impact on how I viewed wealth. My hope is that Millionaire Milestones will have an equally meaningful impact on how you build wealth today.
For those of you waiting for a deal, Amazon is currently offering 10% off the hardcover version in preparation for launch. You can pre-order now and lock in their best price guarantee.
Also, it’s been a real pleasure speaking with many of you through my 1X1 consulting promotion. I spoke to several of you last week while in Tahoe – shout out to Josh, Eric, and Sandy – your financial stories are inspiring.
In another life, I could see myself being a full-time financial advisor. Helping people identify blind spots, chart a clear path forward, and build confidence in their financial decisions has been incredibly rewarding. Seeing the sense of relief and clarity on people’s faces after each session is amazing.
If you’d like to take advantage of the limited-time offer, please read this page and fill out the form at the end. The promotion ends on May 10, 2025, and likely won’t reopen until the end of 2027 or 2028.
To Your Financial Freedom,
Sam
If you were forwarded this newsletter, you can join 60,000+ others and sign up here. My goal is to help readers achieve financial freedom sooner, rather than later.