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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Short Term Madness Vs. Long Term Winners

“Making sense of market volatility.”  This was the subject of an email I found in my Inbox on Friday afternoon.  “What’s all this?” I wondered.   Schwab was sending out emails to investors in order to soothe fears stoked by the madness and volatility in heavily shorted stocks last week.

Last week was crazy-town.  A few select stocks rose or fell by over 100% in a single day!   The volatility was extreme, and trading volumes were through the roof.  Blood was in the water…

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Earnings Calls: The Secret Stock Information Hidden In Plain Sight

It’s that time again — it’s Earnings Season!  What’s Earnings Season you ask?  Earnings Season is the time when publicly traded corporations announce their earnings (or losses) in the prior quarter.

It happens like clockwork, four times a year, and the reported results tend to move markets… sometime wildly.  Take for example Netflix’s recent meteoric 13% climb last week…

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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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December 2020 Dividend Income And Expenses

Happy New Year!  It’s no secret that I’ve had this blog on ‘pause’ for the past few weeks.  I took some time off from writing to enjoy the Christmas and New Year’s holidays with the family.  It’s been fun.  I’ve spent a lot of time with the kids, playing board games, and ‘helping’ them test out their new toys.  There’s also been plenty of socializing (virtually) with friends and family over Zoom. 

It’s certainly been a very different Holiday season (to say the least), but we still managed to have a good one!

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