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Rich people play the money game to win

Rich people play the money game to win and poor people play the money game not to lose, but it’s a spectrum.

I recently read The Millionaire Fastlane when I ran across this principle, but I realized that there is actually a middle ground. It’s for those that are in the getting rich slowly lane. The book calls the middle ground group the slow lane travelers.

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The Royal Rumble With Mr. Market

There are so many recommendations, stock tips and forecasting in the market right now that it will make your head spin. What is needed more than anything right now is patience and persistence. Stick to your investment plan and maintain your emergency fund.

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The Only Stock Worth Buying

As the bull market rages on, hot stock tips can be found on every corner and new IPO’s are coming out on a daily basis. Millions of dollars are flowing into the stock market daily. Let the good times roll.

You may call me a permabear or a pessimist, but I’m very concerned about buying stocks in this current market environment. The only stock that I’m not concerned at all about buying at all time highs is a total stock market index fund. I’ll buy it all day everyday no matter what the price. There are multiple reasons why. 

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When to Sell Stocks

Just because stock market is up and hitting new all time highs everyday doesn’t always mean it’s time to sell. A good rule of thumb is to sell when all of the four criteria listed below have been met.

1. You need money. Likely a 5 to 6 figure amount or some amount that you don’t have in your emergency fund.

2. Stocks are doing well and close to all time highs

3. You have long term capital gains.

4. The needed funds is not easily accessible by any other means. You don’t have it in your emergency fund and can’t sell any unneeded items to generate the cash or work a part time job or side gig.

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How to reduce taxes with a taxable investing account.

Earned income is the hardest income to protect from financial predators and we need to do all we can to reduce our tax burden. One of the best ways to do this is to use your taxable investing account as tax efficiently as possible. This article will enable you to do just that.

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Basic Principles Of Investing

Shares of stocks or index ETF should be bought or acquired in quantities of 10’s, 100’s and 1000’s of share. Try to acquire a minimum of 10 shares of each position. There are multiple ways to do this. You could limit the price of each stock or index ETF to $100 and just keep buying and dollar cost averaging until you have 10 shares. You could also microinvest and buy fractional shares. If for example you want to buy Amazon that costs $3K a share, you could buy 0.1 share or 10% of the share price a month until you have ten shares. If you were to continue to dollar cost average in this manner it would take approximately 10 years to accumulate 10 shares or you could buy an index fund and purchase thousands of fractional shares of stocks a year.

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The Worse Is Yet To Come

The funny thing is, I could have titled this post “the best is yet to come”, the reason being is that we are in a bubble and I have no idea when or where the top is. But what I do know is that there will be a market crash of epic proportions on the horizon. Likely within the next 2-3 years or so. So what are we to do?

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What’s Your Investment Gauge?

I was reading the White Coat investor’s blog the other day and he had written something that was very profound and it was a good gauge to test what level of investor you are. Here is the quote below

“I have often said that beginning investors have trouble following their plan at market lows, intermediate investors have trouble following their plan at market highs, and experienced investors follow their plan all the time. But that doesn’t mean that those experienced investors like the way it feels to be at market lows or at market highs.”

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Gamble The Right Way

I recently read Robert Kiyosaki’s book titled Rich Dad’s guide to becoming rich and he stated in that book that in order to become rich and wealthy we need to be a good gambler and a good banker. What he means is that you have to be a good saver and also be able to take calculated risks. In order to have money to invest you have to live below your means and save the surplus. Then you have to identify your risk tolerance and pick an asset in which to invest in after of course having an emergency fund. You also have to be in position where you can afford to lose money so that it won’t set you back financially. You have to be in a position to take risks. That’s the whole idea behind being a good banker and setting up an emergency fund. It takes balance.

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