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Three White Tenants, One Asian Landlord: A Story About Opportunity

Published: 01/18/2021 by Financial Samurai 103 Comments

I realized the other day that all my tenants are White. I’d never thought about my tenants’ racial makeup until I read an article by Washington Post journalist, Michelle Singletary, entitled, “The Legacy Of Slavery Made My Grandmother Fear Investing.”

Michelle writes how discriminatory policies of the past shaped the way her grandmother approached investing. Her series of articles provides an interesting personal perspective on why there is a racial income and wealth gap today.

Here are some passages from her article that stood out:

When my first employer introduced a 401(k) retirement plan, I sought advice from Big Mama. But she actively discouraged me from “gambling” in the stock market.

“That’s for White folks,” Big Mama said. “They can afford to lose money.”

“The legacies of slavery, Jim Crow, and the New Deal — as well as the limited funding and scope of anti-discrimination agencies — are some of the biggest contributors to inequality in America,” says a 2019 report by the Center for American Progress

So, yes, it’s going to take more than a financial workshop to overcome the anxiety my grandmother lived with all her life and passed on to me.

There was only one investment that Big Mama trusted: her home.

The last line about Big Mama trusting only one investment, her home, really resonated with me.

This article will share some of the following insights:

  • Why there are so many Asian landlords and small business owners
  • Why real estate and small businesses are so highly valued among many minorities
  • How the lack of equal opportunity changes behavior
  • Where the belief of not depending on anyone but yourself comes from


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2021 Financial Samurai Personal Goals And To-Do List

Published: 01/05/2021 by Financial Samurai 81 Comments

Now that I’ve shared my 2020 review and 2021 outlook for stocks and real estate, I’d like to share my personal goals for 2021.

Given the circumstances, we made the most of our time in 2020. However, as each month goes by with no pandemic resolution, I’m slowly getting more frustrated about not being able to live my desired life.

I care about my family and the safety of my fellow citizens. This care is why we haven’t traveled or partied with others since March 2020. Even though the chances of getting the virus are low and the survival rate is high, we don’t want to contribute to the spread.

At the same time, we know we are in the back of the bus for getting a vaccine. Therefore, our patience must last until July 2021, at the earliest.

The first half of 2021 will be much like the second half of 2020. We must hold on!



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The Unhealthy Desire For Prestige And Money Is Ruining Your Life

Published: 12/12/2020 | Updated: 01/21/2021 by Financial Samurai 110 Comments

The Unhealthy Desire For Prestige And Money Is Ruining Your Life

I have a theory. The desire for prestige and money is why we: 1) spend an outrageous sum of money on education, 2) kill ourselves at jobs we don’t like, 3) put up with colleagues and bosses we despise, 4) never pursue our dreams, and 5) eventually fill our hearts with regret. If we can figure out how to rid ourselves of the desire for prestige and money, we will become much happier in the process!

One Man’s Desire For Prestige And Money

I was attending Finovate, a financial innovation conference, I met a fintech entrepreneur named John. He told me his revolutionary idea was to simplify the documentation gathering process for people looking to refinance or get a new mortgage. As anybody who’s ever taken out a mortgage can attest, it’s a real pain in the ass.

I was intrigued since I’ve done about 10 refinances on four properties since 2003. I planned to refinance one last time when I met him. But when John showed me his product, it still required the user to upload all of the docs the bank wanted onto his website. Further, there are always additional document requests from the bank to upload on his platform after that. What’s the point?

Creating an unnecessary barrier between consumer and lender didn’t seem like a good business idea. At least John was trying to solve a problem. I thanked him for his time and wished him well.

Then just last month I ran into John at another fintech conference. I tend to go once a quarter with a free media pass. Otherwise, I’d go less often because these tickets cost anywhere from $300 – $2,000 each!

Running conferences during the internet boom is akin to being a landlord. It’s one of the best ways to profit.

I asked John how his product was doing, and he said that he’s looking to hire a CEO with more product experience. One guy slipped away thanks to an offer from Google, but another guy was close to joining.

Still Not Going Anywhere

Fantastic! I told him. In order to get someone with CEO-level experience to quit his/her job to join his startup must mean his product is doing pretty well. But when I talked to him further, he said he was still looking to launch his MVP, or minimum viable product.

Huh? If an entrepreneur hasn’t launched his MVP, there are no customers or revenue. All an entrepreneur has is an idea. So after 1.5 years, John basically spent $10,000+ attending financial conferences, collected no revenue, and hasn’t even launched a working website. Totally illogical, right?

Wrong.

John mentioned that he was bored back home in Seattle with his wife and daughter. Same old stuff, every single day. Ever since he left the mortgage industry after it imploded in 2010, he’s felt lost. He decided to attend business school part-time, and from there he discovered his passion for fintech.

When I asked him whether he felt that flying down to San Francisco to attend conferences for 2-3 days at a time was costly, he mentioned, “not at all!”

“I feel so alive coming to all these conferences. I get to pass out my business card that says ‘Founder & CEO’! Before, I was just one of many mortgage officers trying to make a buck. Now, I get to meet so many aspiring entrepreneurs looking to do something new with their lives. They treat me as an equal. It’s wonderful!”

He went on, “Also, I’ve been able to meet plenty of interesting women. I always tell them I’m looking to hire a VP of Marketing or whatever role they are currently doing to keep their interest. As soon as I tell them this, their eyes light up as I’m suddenly the man of their dreams!

I’ve been seeing this one woman for over a year now in the Bay Area. Even though she lives 45 minutes south of San Francisco, she always makes time to drive up and have dinner and drinks with me. I don’t know how long I can keep stringing her along about the VP of Marketing role, but she likes the attention and the idea of potentially working for me, so why not enjoy it while it lasts?”

It’s always about a girl isn’t it? Revenue, product, helping others with their financial problems be damned. On the one hand, it’s bad of John to string this woman along for so long as a married man. On the other hand, she’s an adult who makes her own decisions. Sadly, I have a feeling John is heading towards some difficult times both financially and personally as this fintech startup is his only gig. 



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November 2020 Review: Everything Is A Teachable Moment

Published: 12/02/2020 | Updated: 12/10/2020 by Financial Samurai 20 Comments

November 2020 was a solid month. After a disappointing October 2020, the S&P 500 and NASDAQ returned 10.8% and 11.8%, respectively. After November’s gains, the S&P 500 is up 12% for the year.

Could you have guessed that after being up ~30% in 2019, we’d be up another 12% during the middle of a pandemic? Not me. I would have been glad to have given up 10% of my 2019 gains. It’s possible I still could since the year isn’t over yet. However, many indicators are pointing to more gains in the future.

It is clear that positive vaccine news and more clarity after the presidential election has helped boost investor sentiment. I’m buying any 1%+ dips.

The theme for this review is, “everything is a teachable moment” because I’m in the thick of parenthood. We adults take for granted how much knowledge we’ve accumulated over the years and how little our children know. As a result, whenever we spend time with our children, we can teach them something new.

Here’s my November 2020 review so my ancestors and I will never forget what life was like during the pandemic.



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Don’t Let Honor And Pride Keep Your Life On Hard Mode Forever

Published: 11/16/2020 | Updated: 01/24/2021 by Financial Samurai 63 Comments

Having honor and pride are good traits. But having honor and pride can also be detrimental to your quest for financial freedom and living a better life.

Life is already hard enough. Don’t make it even harder by being so stubborn!

I assume that many of you are suffering from burnout just like me. Every day, I wake up between 3:30 am – 5:00 am to write for several hours before my kids wake up. Then we’re talking ~12 hours of rotating childcare and household duties. By the time 9 pm rolls around, my wife and I are wiped out. We are so sleepy, it often takes two sessions to finish one, 1-hour Netflix episode.

One simple solution to living an easier life would be if I just publish one or two times a week instead of three or four times a week. Hot tub sessions would increase three-fold. Binge-watching an entire season would be a breeze too.

But due to a commitment I made in 2009 to publish three times a week, I just can’t quit! It’s like I’m hardwired. Further, I was taught by my high school track coach while dry-heaving after a difficult practice that only losers quit. I don’t want to be a loser.

Let me share some other examples, big and small, of how honor and pride have made my life tougher than it really needed to be. This post is a warning to those who may be too stubborn to change your ways.



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October 2020 Financial Samurai Recap: Back To Normal Life Again

Published: 11/02/2020 by Financial Samurai 23 Comments

In a way, October 2020 kind of felt like the beginning of early retirement. We took our medicine for a long time (strict lockdown for months / aggressive saving for years) and now we’re finally benefitting from our sacrifices.

It feels a little strange to be free again. You’re not quite sure what to do now that you have so many options. Slowly but surely you get back to living the way things were pre-pandemic. But you also know that danger could be just around the corner.

Just like after you retire, you also wonder whether your newfound freedom will last. You ask yourself whether your new life is real and warranted. Maybe you might even prefer to stay at home all day because that is what you’ve become accustomed to.

I’m hopeful things will continue to progress in San Francisco with a sub-1% coronavirus positivity rate. Businesses are opening up everywhere I look.

However, looking around the nation, it seems like just a matter of time before we go back on strict lockdowns again. Therefore, I’m not wasting a day of freedom.

Here’s a recap of what happened in October 2020, the seventh month of the global pandemic.



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The Splinter In My Thumb: September 2020 Recap

Published: 10/05/2020 by Financial Samurai 30 Comments

For the past two weeks, I’ve felt sharp nerve pain thanks to a splinter in my right thumb. I’ve looked closely, hoping to see a tip so that I can use a pair of tweezers to pull the splinter out. Unfortunately, I’ve seen nothing.

I’m resigned to leaving the splinter wedged deep inside, letting my body hopefully one day absorb the foreign object into my bloodstream. For now, I’m treating the splinter as a reminder to never get too comfortable.

Samurai September was supposed to be a month of relaxation. I was going to purposefully write less and spend more time doing nothing when I was off childcare duty. However, after doing nothing productive for about one hour, a restlessness built inside that willed me to get busy again. Things have to change.

Here’s a recap of September 2020 so I don’t forget life during the pandemic when I’m older. To be frank, I’m most excited about doing these recaps for my family.



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Financial Samurai August 2020 Review: The Twilight Zone

Published: 09/03/2020 | Updated: 09/15/2020 by Financial Samurai 38 Comments

To help remember the pandemic time period when I’m older, I’ve decided to do a recap of some highlights and lowlights of each month. Here is my Financial Samurai August 2020 review.

I’m sure 20 years from now we’re all going to look back with wonder at all that transpired.

Overall, I feel like we’re living in the twilight zone. On the one hand, fortunes have never been greater. On the other hand, uncertainty has never been higher.

I would much rather have less fortune and more freedom and certainty. Wouldn’t you?



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July 2020 Financial Samurai Recap: Dada!

Published: 08/03/2020 by Financial Samurai 21 Comments

From now until the end of the year. I’ve decided to focus mainly on the positives. It’s too easy to get caught up in the negatives, which is why I’ve significantly reduced my consumption of news and time spent on social media.

In March 2020, I was hopeful that by August 1, 2020, we’d all have a lot more freedom. Unfortunately, the virus is still everywhere.

The good thing is that every day that passes is one day closer to a potential vaccine. Each day that passes is also one day closer to organizations figuring out how to operate safely in a new environment.

Progress is happening. People are figuring out how to get on with their lives.

Here’s my July 2020 recap so I don’t forget what happened when this is all over. I’d love to hear about how your month went as well.



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Spoiled Or Clueless? Try Working Minimum Wage Jobs

Published: 07/31/2020 | Updated: 01/07/2021 by Financial Samurai 123 Comments

Are you spoiled or clueless? Are you taking your beautiful life for granted?If you are, then try working minimum wage jobs. You’ll eradicate your feelings of entitlement right up if you do!

For many, life is on extreme hard mode now with the coronavirus pandemic. However, we should spend more time being appreciative with what we have. We should also appreciate more the people who make our lives better.

Sooner or later, this damn pandemic will end. Life will get back to normal. In the meantime, we need to wrestle with our demons. Being privileged is something easy to do in a country as rich as America.

Growing Up As A Spoiled And Clueless Kid

I was born in Manila, Philippines to U.S. Foreign Service Officers. During my first 13 years of life living in Japan, Malaysia, Taiwan, The Philippines, Zambia, and Virginia, I was able to see a great dichotomy between the rich and poor.

Seeing so much poverty really scared me into not messing around too much as a kid. But all the same, I still screwed up plenty of times. Despite living a good life, I was still quite clueless in so many things.

In high school, I decided to try and make some money for date money. So I applied for a job at my local McDonald’s for $3.75. Only a month later, I quit.

The main reason why I quit working at McDonald’s wasn’t the low pay or the abusive, ego-tripping manager. After all, the endless supply of broken apple pies went a long way to make up for the unpleasantry at work.

The main reason why I quit was because I was embarrassed.

I lived in McLean, Virginia, a now upper middle class neighborhood 20 minutes away from Washington D.C. Some kids would drive to school in new SUVs their parents bought them. 

My high school home - don't be spoiled or clueless
My townhouse mansion during high school

One of my friend’s even had a separate house just for his indoor pool! While other friends lived in government housing. It was a strange mix of wealth and normalcy.

As the son of U.S. State Department workers, life was low key. We had a seven-year-old Toyota Camry and lived in a cozy 3/2 townhouse. I rode my bike or walked to school.

My parents provided my sister and I all the opportunities we could ever ask for. I just knew we weren’t rich based on what I saw in comparison. The clues started seeping in.



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