Passive income is indeed real and in this article I want to discuss the differences between active and passive income and how to obtain passive income. Active income is obtained by trading time for money and passive income is achieved by trading minimal to no time for money. I call trading minimal time for money semi passive income and no time for money true passive income.Continue reading “How to Generate Passive Income”
This post is about dollar cost averaging (DCA) vs. the marvelous time spent in the market. You see time in the market and dollar cost averaging are two of the greatest strategies used to build wealth in the stock market.Continue reading “The DC vs. Marvel of Investing”
Let me just clarify some terms. A correction is a decline of 10% or greater in the price of a security, asset, or a financial market. Corrections can last anywhere from days to months, or even longer. A bear markets occur when prices in a market decline by more than 20%, often accompanied by negative investor sentiment and declining economic prospects.Continue reading “How to prepare for a bear 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.Continue reading “The Royal Rumble With Mr. Market”
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.Continue reading “The Only Stock Worth Buying”
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.Continue reading “Rich people play the money game to win”
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.Continue reading “When to Sell Stocks”
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.Continue reading “How to reduce taxes with a taxable investing account.”
Shares of stocks or index ETF should be bought or acquired in quantities of 10’s, 100’s and 1000’s of share. 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.Continue reading “Basic Principles Of Investing”
I wrote about the Investors owners contract in my last post, but this is my version of a passive investor contract that is meant for passive investors that invest in index mutual funds and index exchange traded funds.Continue reading “Passive Investor Contract”