The Bessembinder Factor

If there’s one unsung hero of the personal financial world that needs a medal, I think it should be Hendrik Bessembinder.  “Hendrik who?” you’re probably wondering…

Hendrik Bessembinder, is a professor from Arizona State University that researches and studies long-term wealth creation of the stock market.  He studies the how part of how the stock market creates wealth…

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The Straw That Broke This Camel’s Back…

People can pick up and move homes for many good reasons.  Sometimes it’s a job, sometimes it’s to be closer to loved ones, and occasionally it’s to retire to cheaper location.

This process of moving to ensure a wonderful retirement is commonly known as geo-arbitrage.  It’s very common for retirees to move, and something the Tako family has been considering for quite awhile now. 

Along with a cheaper cost of living, we’ve been looking for a nice, safe, quiet place to finish raising our kids…

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Where To Invest Your Excess Cash In 2021

If you’re like most people, your annual household spending was down significantly in 2020 because of the pandemic.  Saving money must have been on everyone’s mind, because the U.S. savings rate saw massive increases in 2020.  By January of 2021, the U.S. savings rate had increased to 20.5%.

That’s certainly a lot of cash being saved!  Bank deposits are now at record highs…

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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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Riding The Wealth Elevator

Imagine for a moment — You are riding an elevator.  This elevator goes up and down like all other elevators, but there’s no display telling you which direction the elevator will go next.  No blinking numbers indicating direction either.  Similarly, you don’t know how many floors are in the building, or even what floor you are on.  It’s a blind ride.

What makes this elevator so unusual, is that it moves in response to…

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January 2021 Dividend Income And Expenses

Another month another dollar.  That’s how I like to think about these regular monthly reports anyway.  Every month we turn the crank one more time on the Wealth Machine.  While our net worth actually increases a whole lot more than $1 in a single month, I like to think in simple terms — Dollars at a time.

It’s the KISS principle applied to wealth building!

Turning the crank means saving, investing those extra dollars, and then compounding any additional value…

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