PRUDENCE & DIVERSIFICATION: KEYS TO SAFE, PROFITABLE INVESTING

Apartment For Rent Sign

Well, it finally happened.  I had to evict a tenant at one of my duplexes due to their violation of their lease terms.  As a result, I now have a vacant unit in the real estate component of my Pay Me Plan. Because I typically buy my investment properties occupied so I receive cash flow from the moment I take ownership, this is the first time I’ve had a vacancy.  This gives me an opportunity to secure some new, long-term, quality tenants and gauge my property manager’s proficiency at renting a vacant unit.  To be honest, I’m actually pretty excited Continue reading

HOW TO AVOID RUNNING OUT OF MONEY IN RETIREMENT

How to Avoid Running Out of Money in Retirement

I’m warning you now: don’t jeopardize your retirement with this flawed (but popular) piece of financial advice.  The 4% Rule that’s frequently espoused by financial planners and pundits can carry with it substantial risk. The 4% Rule is a financial concept that states that as you enter into your retirement years, you should plan on deducting roughly 4% of your retirement portfolio’s value every year in order to meet your living expenses.  The plan is that the structured withdrawals from your nest egg should provide financial support for at least a couple of decades, and possibly as high as 30 Continue reading

INVESTING SHOULD BE BORING (IN A GOOD WAY)

Investing is Boring

Sports can be exciting.  Travel can be exciting.  Movies can be exciting.  But your investing should be boring. Why?  Because proper investing mechanics are driven by investing systems that generate predictable outcomes.  And when outcomes become predictable, the excitement is lost.  While investing with a system may be boring, it can also be immensely profitable when applied with regularity. If you want to become an accomplished investor, it behooves you to understand that emotion should NOT be part of your approach.  Making money through investing is an intellectual pursuit, not an emotional pursuit. One of the challenges I occasionally face Continue reading

SMART INVESTING MEANS OBSERVING TRENDS

Old Personal Pager

Change is constant and inevitable.  Winter changes into spring, night changes into day, and even the largest boulders are eventually reduced to sand.  Death, taxes, and change.  Those are your guarantees, my friend. In the world of business and investing, when a simple change evolves from a temporary detour into a sustainable new direction that’s backed by fundamentals, a new trend emerges.  And when a new trend alters a familiar course or practice, the change can be very disruptive.  Entire industries can be impacted, cultural ideals are often reformed, and massive transfers of wealth can occur.  “Paradigm shift” was a Continue reading

INVESTING IN LAS VEGAS? NOPE.

LasVegasNevada

On a recent flight back to California, I struck up a conversation with a fellow traveler.  Turns out we actually went to the same middle school even though we were a few years apart in age.  Small world, huh?  Eventually we started chatting about why we were on a flight.  He told me that he was heading out to a friend’s wedding, and I explained that I had just spent a few days in the Midwest visiting some of my rental properties.   That captured his interest, and he asked if I was planning to invest in Las Vegas since it’s Continue reading

3 COMMON INVESTING QUESTIONS ANSWERED

QuestionsAnswered

If I had to select the top three questions that I’m asked most often by new members and coaching clients, the questions would undoubtedly be the following: 1)  WHAT SHOULD I INVEST IN? There are two primary factors that determine what you should be investing in:  1) Your personal investment criteria and 2) The current investing and economic landscape. Both are independent variables, but both should be taken into consideration. Starting with your personal investment criteria, this includes things like your current level of disposable income, your level of risk tolerance, and your long-term financial objectives.  For example, if you’re 50+ Continue reading