PeerStreet Performance

PeerStreet Performance After One Year

Gen Y Finance Guy Investing 10 Comments

Reading Time: 8 minutesHere on GYFG, transparency is the name of the game. I put my money where my mouth blog is, and show you everything: both what works and what does not. Today it is time to check under the hood of my own PeerStreet experience, and let you know how it’s going. To recap, it’s been a year since I started investing in hard money loans through the PeerStreet platform. Within five months, I built up my initial $5,000 seed investment to $73,000 and in early 2018 I topped my total account value off to make an even $100,000. As I write, the current value of my total investment (across two accounts) is ~$103,000. I want to show you the actual Peer Street …

Warren Buffett

Straight Outta Omaha: OG Thoughts On Investing – Warren Buffett

Gen Y Finance Guy Investing 2 Comments

Reading Time: 13 minutesHere is part three in this Warren Buffett series (part one & part two), covering a few of the sections I have pulled out from the last 50 years of Berkshire Hathaway Letters to Shareholders, which I finished reading in October of 2017. Although the entire 50-year series was filled with a ton of business and investment wisdom, all the pieces that I pulled are from the past seven years. I admit a probable recency bias, whereby after reading almost 700 pages, I remember more of the recent letters than the older ones. Needless to say, you bet I will be reading through all those letters again in the future. For the selections of this post, I pulled Buffett’s insights and comments …

Market Corrections

Market Corrections Represent Opportunity: Here is How I’m Capitalizing On The Recent One!

Gen Y Finance Guy Investing 7 Comments

Reading Time: 5 minutesIt’s been quite some time since we’ve witnessed the kind of volatility we saw over the past two weeks of trading (1/29/18 to 2/9/18). But I really don’t know how anyone can be surprised that we finally got this long overdue correction in the stock market. Corrections are natural and healthy. Perhaps it’s because we’ve had such a long run of upward motion this time that people acted as if they’ve forgotten this! If you look at the peak to trough correction of the date range referenced above, the S&P 500 experienced a -12.1% decline. These are the types of opportunities that justify building up an opportunity fund (what I like to refer to as “dry powder”). Note: I will use …

How Selling Options May Be Safer Than Buying Stock

Gen Y Finance Guy Investing 1 Comment

Reading Time: 11 minutesToday I am sharing a Post that was originally published on Financial Samurai and is a piece I wrote almost two years ago. With the recent market sell-off, I thought it timely to share this post with you because selling options is best when volatility is elevated. I have always believed that risk is a function of education. The financial media may have you convinced that options are very risky and you may even believe they are weapons of mass destruction. But what if I told you that if you use options the right way (which is not to speculate) that you could actually take less risk using them than by buying stock outright? And in doing so you would increase …

Goals

Managing $50,000 to $100,000 Net Worth Buckets

Gen Y Finance Guy Investing 16 Comments

Reading Time: 2 minutesIt wasn’t too long ago that I thought in terms of $1,000 to $10,000 buckets. As our income and net worth have grown, so too has my approach to thinking in terms of absolute dollar buckets. As we work our way towards a seven-figure net worth, I can’t help myself but think in terms of $50,000 to $100,000 buckets now. I recently reported our net worth at $664,391, which is broken down into the following buckets (slightly different composition then my December financial report indicates since I have deployed some cash since then): (1) Equity in our home at $180,409 ($450,000 Market Value – $269,591 Loan Outstanding) (2) Company Stock $105,045 ($317,045 market value less zero-interest loan of $212,000) (3) Cash at …

Turkey Day 2017

I Did It. I Invested In Death!

Gen Y Finance Guy Investing 28 Comments

Reading Time: 6 minutesIt’s official: the Grim Reaper and I are now partners. However – let me be clear – we have agreed upon a firewall between our respective functions. The Grim Reaper himself will continue to fulfill his duties in transitioning people from life to death (I’m not into the whole blood and guts scene), and I also stay out of the realm of deciding whether someone’s time has expired or not. Additionally, I made him promise that he can’t take anyone earlier then they were naturally going to go or I just wouldn’t be able to participate in this arrangement with a clear conscience. It’s a matter of morals and ethics. My role in this arrangement is solely financial. I agreed to put …

Life Settlements - Profit From Death

Death Is Our Only Certainty – What If You Could Ethically Profit From It? You Can, With Life Settlements

Gen Y Finance Guy Investing 4 Comments

Reading Time: 6 minutesDid you know you can invest alongside the grim reaper? Yes, you can actually profit from death. I know this sounds morbid and probably a bit shady, but let me explain. At the end of this post, I think you will realize that the alternative investment class discussed today provides a win/win for all parties involved, and may just be the perfect addition to your own portfolio. I’m constantly searching for new opportunities to allocate capital, specifically into investments that provide a HUGE margin of safety. This is because, unlike most, I approach investments with a risk focus first. Only after I understand the potential downside do I even begin to contemplate the potential upside. The investment vehicle that allows …

PeerStreet Review

PeerStreet – Hard Money Lending For The Retail Investor

Gen Y Finance Guy Investing 47 Comments

Reading Time: 7 minutesI’m absolutely stoked to share the details of my recent visit with the founders of PeerStreet and what I’m dubbing my favorite investment of 2017 and beyond. This is going to become a very substantial piece of my overall asset allocation. It’s not often I get very excited about an asset class, but this is different, because PeerStreet is in a league of their own. My first introduction to PeerStreet was back in May of 2016, when Mr. Money Mustache himself wrote about his new investment experiment on the PeerStreet platform. Although I was immediately interested, my wife and I had just made a $50,000 hard money loan the old fashioned way (i.e., big chunk of capital, a huge concentration of …

2016 Portfolio Performance

Equity Portfolio Update #5 [+21% @ 12-31-16]

Gen Y Finance Guy Investing 12 Comments

Reading Time: 4 minutesWe have officially closed out 2016, thus the need for another peek into the equity portfolio. As many of you know that have been reading for any length of time, every month I put together a very detailed financial report that details out gross income, expenses, net worth, savings rate, and progress on the 7 year 3 month mortgage pay off goal. Since the report already pushes 3,000 – 4,000 words a month, I thought it would be more appropriate to provide details of the equity portfolio in an entirely separate post. Also, I don’t really see the benefit of updating this on a monthly basis, quarterly should be just fine. One of the guiding tenets of this blog is that …

Peer to Peer Lending

Humble Beginning in Peer to Peer Lending

Gen Y Finance Guy Investing 19 Comments

Reading Time: 5 minutesI first dipped my toes in to the Peer to Peer lending market back in 2010. Back then I was just dabbling and transferred $2,000 into my investment account over a 6 month period. Looking back at the history it looks like this initial investment was made up of 5 separate deposits. I don’t really remember what put P2P lending on my radar, but I do remember finding it intriguing…obviously it was interesting enough for me to divert some capital over to a P2P platform. Prosper was the first platform I found that facilitated such P2P lending activity. I am pretty sure Lending Club was around at the time as well, but I chose to invest my capital using the …