Tax Consequence If My Wife Stops Working

Low Probability + High Return Hedge Strategy

Gen Y Finance Guy Financial Analysis 4 Comments

In a prior blog post, I alluded to a new strategy that interests me. It’s one that most will probably not agree with, which makes me like it even more. Please understand that what I’m about to write is not a recommendation for you, nor should it be considered financial advice. Ever since reading Nassim Taleb’s book “The Black Swan” back in 2011, I’ve been intrigued by the concept of investing in what is known in sophisticated financial circles as “tail risk.” Tail risk is a form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. – Investopedia In …

Income Report

June 2020 – Detailed Financial Report #66

Gen Y Finance Guy Monthly Financial Reports 8 Comments

It’s hard for me to believe that everything is just going to go back to normal overnight. Or even that we’ve seen all the pain we are going to see during this pandemic. But I also acknowledge that I could be wrong – either in my timing or hypothesis of what is likely to happen next. There is no doubt many businesses have or will fail due to the blow of this pandemic (and the resulting restrictions to “business as usual”). On the other side of the coin, there are going to be other companies that thrive in the “new world.” My business (software consulting) is one of those businesses that is not only surviving but thriving in this environment …

The Only Fortune You Have To Spend Down To Zero

Gen Y Finance Guy Words To Live By 7 Comments

Poof! The first six months of 2020 are officially in the rearview mirror along with the 15,724,800 seconds they represented. And you thought money was slippery? At the end of the day, money is only a measure of how much time freedom you have. If you think about the 4% rule, its basic premise is to accumulate 25X your desired annual burn rate in order to sustain you for a 30+ year “retirement” (in parentheses because everyone’s definition of what this looks like is different). You have to dive a level deeper to realize that 25X before any appreciation, dividends, interest, or rental income is really a measure of time. It represents 25 years worth of living expenses – in …