Six Decades
The market’s returns aren’t promised. The sequence of returns might not work in your favor. But you can still be a successful investor.
The market’s returns aren’t promised. The sequence of returns might not work in your favor. But you can still be a successful investor.
Letâs be real: there are tons of different financial tools out there that people use to make money from the stock market, and it can be hard to keep them all straight. You might have recently heard your uncle or boss talking about their dividends and wondered what those were and how they differed from
The post Guide to Dividends, Dividend Yield & High Dividend Stocks appeared first on MintLife Blog.
Letâs be real: there are tons of different financial tools out there that people use to make money from the stock market, and it can be hard to keep them all straight. You might have recently heard your uncle or boss talking about their dividends and wondered what those were and how they differed from
The post Guide to Dividends, Dividend Yield & High Dividend Stocks appeared first on MintLife Blog.
Stockpile is an online brokerage account designed for parents who want to give their children a leg up in personal finance. By opening a custodial account for a child or teen, parents can help kids learn the ropes and also invite friends and family to purchase gift cards for stocks as presents at birthdays, holidays, […]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Best Sacramento Neighborhoods in 2023
The post The Best Neighborhoods in Sacramento for Renters in 2023 appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Hello! Today, I have a great debt payoff story from Nolan Martin. Nolan is a military officer who successfully paid off $100,000 in debt in just 40 months. Below is his story. We were incredibly anxious to get our lives started together. Fresh out of college and new to the military life, I convinced my wife, […]
The post How We Paid Off $100,000 in Debt in 40 Months: Marriage and the Military appeared first on Making Sense Of Cents.
As a financial planner who has been around for a while, Iâve overheard plenty of wild claims about retirement and money. If I had a dollar for every person who told me their whole life insurance plan worked like a savings account or that their variable annuity was the best investment available, I would be […]
The post 8 Retirement Rumors to Ignore If You Actually Want to Retire appeared first on Good Financial Cents®.
A savings calculator can help you build a savings plan to make your goals a reality.
The post How a savings calculator could help you reach financial goals appeared first on Discover Bank – Banking Topics Blog.
I am both a money nerd and a book nerd. Naturally, I get a little giddy when I find old books about money I’ve never heard of before.
While browsing Oregon’s best used bookstore earlier this year, I stumbled on a 1989 book called How to Retire Young by Edward M. Tauber. Tauber retired at the age of 43 from a tenured full professorship as Professor of Marketing at the University of Southern California. He’s written a number of marketing textbooks, but this was his first (and only?) foray into the realm of personal finance.
How to Retire Young is one of the oldest books I’ve found on the subject of early retirement. It’s fun to see how much of the modern financial independence movement is foreshadowed in the book’s pages.
It’s also fun to see how closely How to Retire Young adheres to my own “get rich slowly” philosophy. “Much [financial advice] is oriented toward the quick buck,” writes Tauber, “taking paths that often have a low probability. In short, you might as well play the lottery.”
Tauber has a different philosophy. He urges readers to “take the high road”. He wants them to follow the path with the greatest odds of success, even if that path might not lead to quick wins. He also cautions that “there’s no best way for everyone”, just as I say “do what works for you”. There are certainly best practices and mathematically optimal options, but there aren’t any right options.
Tauber’s premise is that many people can retire early — if they plan and remain dedicated to the plan. He writes:
“If you want to retire early, there are no magic formulas. It requires hard work to make money and requires smart work to learn how to invest on a pretax basis. If you invested 15 to 20 years in school to learn how to make money, why not spend a little effort to plan how to capitalize on your earning power to be able to enjoy it for a third of your life on your terms in early retirement?”
“Think of life has having three periods: schooling, working, and savoring,” he says. Most folks spend the first 20 to 25 years of life in school, work for 40 to 50 years, then leave what’s left for “savoring”. He suggests shifting our perspective. “Why not plan life in three equal installments?” he asks. Spend 25 years in school, work for 25 years, then savor another 25 years — or more.
The issue, as you know, is that there are trade-offs. The opportunity cost of retiring young is the stuff you could have had (and the things you could have done) during your working years. “Early retirement is like anything else that you can purchase,” Tauber writes. You probably won’t have as much discretionary income while you’re saving or when you retire, but you will have the time to enjoy what you do have.”
Tauber says the reason most people don’t retire early is they don’t think it’s possible. More than that, they’re not willing to wait to spend their money. They want to spend it now. They’re working hard, earning money, and they feel like they deserve to indulge themselves.
What’s more, the average person “cannot visualize the possibility that [work] might slow or stop”. People fall victim to the forever fallacy. As a result, they get trapped in what Tauber calls the work-spend cycle.
When you want everything now, you get it now — but that means exactly what it implies: having it now, not later. “It’s a prescription for a lifetime of work and spend,” Tauber warns. It’s also a prescription for living on less when you’re older. If you want money now and later, you have to plan for it. You have to want it badly or it won’t happen. And “if you want to retire early, you have to do it yourself, using the system to your best advantage.”
Today’s post is a quick interview with Gary Grewel, author of Financial Fives, a new personal finance book that shares 325 ways to save, earn, and thrive with your money. Gary was kind enough to share his thoughts and background with you, The Best Interest’s readers.