How To Keep Compounding When The Market Won’t

There exists an urban legend about Einstein.  You’ve probably heard it before.  Supposedly Einstein once said that “compound interest is the most powerful force in the universe.”  It sounds pretty cool, and smart — like something Einstein might actually say.  Whether Einstein actually said these words or not is subject to debate.

We’ll probably never know the truth about that Einstein quote, but the important part is the truth within it — Compound interest, or more generically “compounding” is an extremely powerful financial force when it works for you…

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The ROE Conundrum: Where Did The Shareholder Returns Go?

Personal finance can (at times) be a difficult and deliberately obtuse field for a layman to study.  With acronyms like ROE, EBITDA, ROIC, CAGR, PEG, and hundreds of different valuation ratios, investing can be a dizzyingly complex topic.

Like other fields of great complexity, humans have created helpful little maxims to help wrap our terrestrial brains around the complex financial topics of personal finance and investing…

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Growing Passive Income In 2021

Living off passive income is a bit like spotting a snow leopard in the wild.  Snow leopards are (of course) one of the most rare and elusive creatures on the planet.  They live in the Himalayas at significant altitude (9,800 to 14,800 ft), and it’s estimated there’s less than 10,000 of these extremely rare cats alive today.

Seeing a snow leopard in the wild is exceedingly difficult.  Hardly anyone ever sees them.  Naturalists can spend months in the Himalayas looking, and never actually see one.  Despite this fabled difficulty, it is actually possible to see a snow leopard in the wild…

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A Hope And A Dream

With 2020 nearly wrapped up, I think we can all agree it’s been a very difficult year.  As the old saying goes, “The only constant in life is change”, and that was certainly true in 2020!  The world is a constantly changing place… this year especially!

Despite 2020 being one of the worst years economically in recent memory, the stock market was actually up in 2020.  Which seems a bit strange at first…

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Growing Passive Income In 2020

Passive income.  It’s the El Dorado of the financial independence world.  Everyone wants it, and everyone thinks they know the best way to find it.  Some people swear by rental properties, others invest crowd funded real estate projects.  A few even manage to find it by investing in stocks and bonds.

Passive income (as you might expect) isn’t easy to find…

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Should I Be Investing In Master Limited Partnerships?

I need to admit I made a mistake.  At first glance, master limited partnerships ( ‘MLP’ for short) always seemed like the kind of investment I would automatically dislike — With flat share prices, large debt levels and high dividend yields.  They ticked a lot of my “don’t invest” boxes pretty quickly.

It should come as no surprise, that I’ve essentially ignored MLP’s for years…

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Avoiding The Stink Of High Yield – How Much Is Too Much?

It’s long been a goal of mine to have a dividend income that roughly matches our family’s annual expenses.  I say *roughly*, because in any given year we might have a random irregular expense that causes us to overspend our cash generation a little. 

(The purchase of a new car, an expensive family vacation, or repairing the roof on our home would be good examples of this)

This year, I’m going to be pretty close to that goal…

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Mr. Tako Escapes