Category Archives: Investing

Bonds to Reduce Volatility

During the first ten years of my investing career, my asset allocation was solely invested in stocks.  From 1997 until 2007, my portfolio returned 8.5%.  I wrote about that period in my first post of this series 100 Percent Invested in Stocks.  In this post, I will write about how adding bonds to my portfolio reduced volatility during the decade that followed. By the year 2007, my portfolio had five years of positive returns.  At that time, I was […]

100 Percent Invested in Stocks

. Do you think you have the risk tolerance to invest 100% of your portfolio in equities?  I had an asset allocation of 100% invested in equities for over 10 years.  At this stage in my life, However, I no longer have the need or desire to have that asset allocation.  That was how my portfolio was invested when I reached my first milestone of Saving $100,000 by age 30. This is the first of […]

Saving $100,000 by age 30

Saving my first one hundred thousand dollars was the hardest.  When I started on the road to financial independence (FI), I was only 20 years old.  I wanted financial independence and reaching my first $100K was the first goal that I set.  I was aware that it was a lofty goal, but I embraced the challenge.  I wanted to reach this milestone by age 30.  On my way to reaching this goal, here is what […]

Stocks: Buy Low, Sell High

When it comes to investing, the one saying that most investors have heard countless times is to buy low and sell high.  In other words, buy stocks when they are selling at the bottom of the market and sell them when they become overpriced.  In theory, this is great advice.  In practice, it is very hard for professionals to do and almost impossible for individual investors to do. Many investors try to base their approach […]

Financial Independence: A Universal Goal

While reaching early retirement is my goal, it might not be suitable for everyone.  On the other hand, the goal of reaching financial independence should be the focus of everyone during their working years.  Even though most careers seem to drag on forever, the amount of time that we have available to work and save money is truly finite.  Everyone should have the goal of saving enough money to cover at least 25 years of […]

Meeting the Bogleheads

In February, I attended my first Bogleheads chapter meeting.  It was a long drive.  I drove over 100 miles to the Philadelphia meeting in King of Prussia, Pa.  I have been a follower of the Bogleheads.org forum for many years and have spent countless hours reading the Bogleheads.org forum. The Bogleheads take their name from John C. Bogle who founded Vanguard in 1975.  He created the Vanguard 500 Index Fund (VFINX).  The Vanguard 500 Index […]

How I learned about money

I learned about money from my Grandmother.  I was a precocious kid.  As an only child, I spent a great amount of time with adults.  The adults in my life had the tendency to try to have a dialog with me as if I too were an adult.  Friends from school would come over to my house to play quite often, but I remember spending a great amount of time with my Grandmother. My Grandmother […]

Peer-to-Peer Lending (P2P)

INTRODUCTION You cannot manage a household or do much of anything in this world without the input of money. There are so many people who lack the financial means to live and enjoy a high-quality life.  Money is what stands in the way of them acquiring their needs or wants. When there is a problem, various solutions will be thrown up. Welcome to the world of Peer-to-Peer Lending (P2P). DEFINITION Peer-to-peer lending is legal and […]

The Vanguard Star Fund (VGSTX)

Many of my friends know that I truly enjoy living a frugal life, investing, and working toward financial independence.  Most of my friends, however, do not share the same passion for personal finance the way that I do.  They all like what money provides, but they are more focused on other interests. Over the years, people have asked me to set up their work-sponsored 401K.  Others have asked for help setting up an IRA for them.  Some have even […]

The Power of a Dual Income Couple

Albert Einstein said that compound interest is the 8th wonder of the world.  He who understands it will earn it, and he who doesn’t will pay it.  If compound interest is the 8th wonder of the world, then I feel that the power of a dual income couple is the 9th.  Being in a dual income couple can be a powerful wealth building partnership if managed correctly. At my first full-time job, I worked with […]