Investments

Regularly Selling Your Company Stock Is Probably A Good Idea

Some employers pay their employees with company stock as part of their total compensation package. This way, employees become owners and potentially feel a greater sense of duty towards the firm. If you don’t own any of your company’s stock, you might be less inclined to come in early or leave late. Without company stock, […]

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The Need For Liquidity Is Overrated (If You Are Financially Competent)

During the bull market, I shared my belief the need for liquidity is overrated. After going through a bear market in 2022, I thought I’d revisit my thesis to see if it still stands. So far, I think it does. You’ve heard the recommendations of always having an emergency fund equal to 6-12 months of

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How To Better Manage Your Private Investment Capital Calls

Recently, I temporarily went broke because I improperly managed my private investment capital calls. Because this happened, I thought I’d discuss some straightforward solutions to ensure you always have liquidity. If you are a new private fund investor or plan to invest in more private funds to diversify your investments, please learn from my errors.

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How To Prepare For Another Bank Run As The Contagion Spreads

Sadly, Silicon Valley Bank (SVB, $SIVB), the 16th largest bank in America at the end of 2022, experienced a bank run. Now the contagion has spread to other regional banks such as First Republic Bank, Signature Bank, Zions Bancorp, PacWest, Comerica, and Charles Schwab. Even the largest banks were getting hit as well. Ultimately, The

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Shifting Retirement Assets From Tax-Deferred To Tax-Now By 2026

The tax-now Roth IRA will increase in popularity over the coming years. Let me explain why. When Congress passed the Tax Cut and Jobs Act (TJCA) of 2017, it inaugurated an eight-year period of the lowest tax rates in American history, which started on January 1, 2018. However, due to the sunset clause that was

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Combatting Inflation Is Straightforward But Not Easy

Much has been said about inflation hurting society. As people’s buying power decreases, life gets more costly. Heck, the Fed seems hell-bent on causing another recession to contain inflation. However, as I look at the historical price changes of some of our most important consumer goods and services, I can’t help but think combatting inflation

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Why You Won’t Regret Buying Treasury Bonds Yielding 5%+

Recently, I can’t help but shovel more money into Treasury bonds. With 3-month-to-1-year Treasury bonds yielding 5%.4+, I feel like the guaranteed return is too high to pass up. But the more Treasury bonds I buy, the more I wonder whether I will regret the decision a year from now. Perhaps you are starting to

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Short-Term And Long-Term Capital Gains Tax Rates By Income

Do you need more incentive to generate passive income in order to give yourself more freedom? Then look no further than the below two charts. They show the 2023 capital gains tax rates by income for both short-term and long-term. The short-term capital gains tax rate is equivalent to your federal marginal income tax rate.

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The Difference Between Active Income And Passive Income

After writing about building passive income since 2009, people still seem to be confused about the difference between active income and passive income! Let me finally put this confusion to rest because I don’t want people to get tricked into thinking earning passive income is easy. It is not! It took me from 1999 –

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The Benefits Of Owning Stocks Over Real Estate For Certain Investors

There are may benefits of owning stocks over real estate. We’ve already discussed why I prefer real estate over stocks for most people. Now it’s time to argue the other way. I’ve been an investor in both stocks since 1995. I’ve also been an investor in real estate since 2003. Both asset classes are core

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