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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Wealth Is All In Your Head

When you think about it, money is a pretty funny thing.  For a couple thousand years humans used precious things to represent this idea of “money” — ivory, colorful shells, precious gems, livestock, silver, and most notably gold.  This worked well for humanity for a very long time… as long as the values were small.

The general inconvenience of physically carrying a whole bunch of “precious stuff” eventually gave way to paper certificates…

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March 2019 Dividend Income And Expenses

Wow, what a difference a month makes!  This time last month, the Tako family was buried under a veritable mountain of snow.  Now, one month later, spring has definitely sprung.

Temperatures are warmer, and there’s more natural light due to the annual daylight savings time shift.  This has made a huge difference in how much daylight we have, and I find myself itching to get yard-work done and prep the bbq for grilling season…

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Defensive Stocks: A Investing Strategy For Mr. Market’s Bad Mood

Once upon a time and not so long ago, I told a fairy-tale about Low Beta investing.  It’s one of those great investing fairy tales backed up by plenty of research which attracted lots of attention and money.  When I looked at the actual results of the strategy, it didn’t fair so well.  It made for a good bedtime story however.

Fortunately, there’s plenty more investing bed-time stories where that came from!  Today we’re going to look at one of the classics — a equity investing strategy used to protect the investor during recessions and other market downturns…

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The Obvious Mistakes

Simple, yet profound.  The longer I live and the (hopefully) wiser I become, the more I realize that the most of the important concepts in life boil down to just a few simple ideas.  Simple, yet very very important.

Ideas like, “Spend less than you make”, “Optimize for the common case” or “Invest for the long term by buying and holding”.  These are exceedingly simple concepts… yet when they’re practiced for an entire lifetime these ideas can lead to incredible financial success.

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Low Beta Investing: The Anomaly of Lower Risk And Greater Returns

Greater risk means greater rewards.  That’s the mantra we’ll taught about stock market investing.  Take the risk of investing in the stock market and you could lose money… but you might also make considerably more than you would in a bank account, or money market fund.

“Without risk there is no reward.”

That’s the story we’re told as newbie investors anyway…

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Is The Internet Causing The World To Become More Faddish?

Unique thinking has always been something of a rarity among the human race.  Humans are social creatures that like to fit in.  We love to talk, tell stories, share ideas, and even copy some of the best ideas.  We also tend to follow the people we believe to be authorities.

This behavioral tendency leads to fads and faddish behavior.  Take for example Tulip-mania…

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