Income Report

July 2020 – Detailed Financial Report #67 – Net Worth $2,071,369

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The mantra for the month of July was “Finish Strong!” Once we cross over the halfway point of each year, I get this uncontrollable urge to finish and close as many loose ends as possible. This ranges from open house projects, investments, food in the house, books, blog posts, etc. Below are some of the things I was able to get across the finish line in July: I invested an additional $100,000 into the Industrial Real Estate deal that I wrote about last month. This time it was into a separate LLC that was created to take advantage of the Opportunity Zone tax benefits. I have ~$415,000 in gains from liquidating my equity position in my former employer and this …

Tax Consequence If My Wife Stops Working

Low Probability + High Return Hedge Strategy

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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 …

Why Long-Term Investors Should Consider Dividend Stocks

Gen Y Finance Guy Financial Markets 1 Comment

Today we have a guest post from the folks over at Sure Dividend who will be sharing why they think long-term investors should consider dividend-paying stocks. I won’t steal their thunder as to why they recommend this strategy, but you’ll soon find out. Sure Dividend, the floor is yours… Not all stocks are created equal. Stocks are generally grouped into three main categories: value stocks, growth stocks, and income stocks. Sometimes a stock can offer a mix of two, or even all three, categories. At Sure Dividend, we believe stocks that offer such a blend of value, growth, and income can be the best investments for long-term wealth creation. This is why we recommend investors consider high-quality dividend growth stocks …

Income Report

May 2020 – Detailed Financial Report #65

Gen Y Finance Guy Monthly Financial Reports 4 Comments

Time has started to move at an increasingly accelerated pace for the GYFG household. It might be because of a slow but steady march back to some level of normalcy after months of “lockdown.” Here are a few highlights from May: We made a trip out to Lake Meade for the Memorial Day Weekend (with other people). We ate in a restaurant not once but three times and were served by…people. We had a BBQ at our house with friends (there are those people again). We went to the beach with friends and again there were lots of other people. As you can tell, the theme here was that we were not locked down in our house for the entire …

Chasing FIRE Interview #12 – With Rich at Sport of Money

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I’m no longer officially accepting Chasing Fire interviews but today’s guest is someone that I had originally invited to participate so when he reached out to see if the opportunity was still available I agreed to share his interview. I did this because I think Rich has a unique story and he also has a Net Worth in excess of $10M. I have always enjoyed reading and listening to interviews to learn how people got to where they are, so as to learn from the successes and failures of others. Each individual’s story and path is unique, and we can certainly gain insights from those generous enough to share their stories. Rich, the floor is yours – take it away! Tell us about …

A Dollar Saved Is a Dollar Earned

Gen Y Finance Guy Financial Freedom 14 Comments

With so much uncertainty in the world, it’s difficult for me to allocate incremental capital to traditional investments right now. I’m currently dumbfounded by the performance of the stock market and I’m waiting to see how this pandemic spills over to the real estate market. While I wait, I continue to build our war chest of cash, while simultaneously looking for creative ways to manufacture financial returns. Since mid-March when the COVID-19 outbreak started dominating our lives, I shifted the majority of my focus to things I could control, like our expenses. I’ve gone through a detailed analysis of all of our outflows looking for opportunities to cut out unnecessary spending. Like many, if not most, we are naturally going …

Income Report

April 2020 – Detailed Financial Report #64

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First and most importantly: I was finally able to procure some toilet paper for the GYFG household! I still don’t understand why people started hoarding TP as if it were gold but I’m glad we had enough on hand to get us through the initial panic phase of this pandemic. The news hasn’t gotten any better but we all seem to be adapting and moving past the shock of it all. There is still plenty of uncertainty on the horizon with respect to where we go from here…most of which plays out daily well beyond my control. That being said, I believe even more strongly in the importance of focusing on what I can control! Like many, the GYFG household …

Investing During the COVID-19 Pandemic – The Details Behind a $385,000 Capital Deployment

Gen Y Finance Guy Financial Markets 6 Comments

It is crazy to think it was only a few short months ago that the stock market (as measured by the S&P 500) was making new all-time highs. How far it feels like we are from that right now… Were you ready? Was anyone? But how do you plan and prepare for a pandemic? I don’t know if you can, at least not directly. I do believe that financial prudence is always the right path pandemic or not, which I define as spending less than you make, keeping low to no leverage, investing part of your savings (with a margin of safety), and saving the rest for a rainy day (or a really bad storm…otherwise known as a pandemic). Then …