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 …

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 …

Be Greedy When Others Are Fearful!

Gen Y Finance Guy Financial Markets 11 Comments

If there is ever a time to turn to the great Oracle of Omaha it’s in times of market volatility. Warren Buffett reminds us as investors that “It is wise to be fearful when others are greedy and greedy when others are fearful.” This goes against human instinct, as most of us panic in times of crisis – we do the exact opposite of Buffett’s advice and panic-sell out of our investments. But one of the biggest lessons I’ve learned from reading every single shareholder letter Buffett has ever written is the importance of doing a whole lot of nothing for long periods of time. Like Buffett, I’m constantly looking for my “margin of safety” when evaluating opportunities for capital …

CHASING FIRE INTERVIEW SERIES

FIRE Starter – Tips on How to Grow Your Net Worth in the Early Years

Zach Financial Markets Leave a Comment

You can find all of Zach’s previous posts here. Today, Zach is going to discuss how you can grow your net worth in the early years. Many people miss the fact that compounding takes a decade or longer to really work its magic. That is why I push the income side of the equation so hard. Your contributions (the gap between your income and your spending) make up the majority of your net worth for at least the first ten years in most cases. You could be the exception to the rule, but I wouldn’t bet my – or your – financial future on that. I even wrote a post about the inflection point of contributions vs. compounding (that you …

Don't Panic

How To View & Manage Your 401K To 7 Figures

Gen Y Finance Guy Financial Markets 15 Comments

Before I get into what I have been doing wrong with my own 401K, let me tell you what I have done right. The one thing I have consistently done is contributed to my 401K and in most years maxed it out. That said, there are several mistakes that I have made over the past 8 years: (1) I have held way too much cash when I should have been fully invested. (2) I withdrew $10,000 as part of the downpayment on the house we now live in, because it was allowed penalty-free (but not tax-free). (3) I didn’t take full advantage of the max contribution limits. (4) I borrowed from my 401K not once but twice. Since I started …

I Miss My “Guaranteed” 15% Return (or Better) Every 6 Months

Gen Y Finance Guy Financial Markets, General Information, The JOB 29 Comments

Last week I was reading a post by fellow a blogger and unfortunately did not bookmark the post. And to make matters worse, I don’t remember which blog it was (first thank you to the blogger for the inspiration for this post, secondly this post is going live a few months since reading that post). However, the post was talking about how even people who work in Finance don’t make the best decisions when it comes to their finances. It reminded me of a story that I would like to share with you all here. Back Story I used to work for a public company a little over a year ago that offered an “employee stock purchase program” or ESPP for short. The program allowed …

Sell Into Strength - Investment Rule #2

Sell Into Strength – Investment Rule #2

Gen Y Finance Guy Financial Freedom, Financial Markets, New Rules, Options, Words To Live By 6 Comments

Over the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. Selling …

My plan for $63,000 in Cold Hard Cash

Gen Y Finance Guy Financial Markets, Investing 41 Comments

Before you read any further would you do me a favor? Could you help spread the word by sharing this post on social media? It’s no national secret that my investment accounts are largely flush with cold hard cash. As I write this post my brokerage accounts have a total net liquidation value of $102,000 (rounded number). Of the total liquidation value I have $39,000 invested, with the remaining $63,000 sitting in cash. Most of the personal finance bloggers out there would likely advise me to continue putting money to work regardless of the fact the stock market is at ALL TIME HIGHS. However, I have a much different philosophy. I agree that the market has had an incredible run …

Example of Buying Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, Options 22 Comments

“Dude, suckin’ at something is the first step to being sorta good at something.” -Jake, “Adventure Time” A few days ago I wrote a post laying the foundation for my 10 rules for investing. In rule #1 we discussed what it means to buy into weakness. After some good dialogue with you guys in the comments of that post, it dawned on me to include a real example of what it actually looks like to buy into weakness. It was a comment by Mr. Maroon that helped spark the idea when she said: Enter Mrs. Maroon When we first started aggressively trying to save money for investments and actively watching our balances, we agreed that the very best approach was to …

Buy Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, New Rules, Options, Words To Live By 24 Comments

Over the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. (Note: …