The Three Types Of Financial People

3 types 2In the financial world, there are just three types of people: those that pay interest, those that earn interest and those that own the bank.

Now assuredly one might cycle through all three stages (and back) throughout their lifetime. Moreover, it’s a bit a simplification in that you can do these things simultaneously. However, it remains that at any given time you are a net payer, a net earner or a net owner. Read more

A Million Billionaires

million billionIf you want to become a billionaire, there’s good news forthcoming. The formula is quite easy: invest $2,000 per month at an average 8.5% compound return for the next 100 years. Simple, right?

Granted you might never live to see this 10-digit wealth, but some of your heirs certainly could. Moreover, you can play with the numbers to reflect a higher contribution amount or starting balance and therefore a lower required return or time horizon.

So, what’s the point of this? That’s a good question and I’m glad you asked. Read more

Creative Loafing Is Like The Stock Market

CL like stockEveryday I get an email from Creative Loafing offering me a deal. If you’re not familiar with CL, it’s precisely similar to Groupon or Living Social. These websites offer discounts on behalf of a variety of different businesses. For instance, common deals include things like a $20 restaurant voucher selling for $10 or a buy-one get-one Jet Ski rental.

Recently, it occurred to me these daily messages are exactly like the stock market. I’ll give you some examples prior to demonstrating what I mean. Read more

October 2014 – Update

oct upThis is the third monthly installment of the update series. I wanted to keep an ongoing log for the site, so I’m committed to providing monthly updates (until one of us gets bored with them). In doing so, I hope to accomplish two things: 1) keep my loyal readers in the loop and 2) have something tangible to look back on. It occurs to me that this is the same language as the beginning of the previous two updates, so perhaps that boredom level is fast approaching. Then again, I do have a reasonable amount to Read more

Today’s Effort Is Tomorrow’s Passive Income

today's effort trueAs you know, I write over on the website Seeking Alpha fairly often. If you don’t know, feel free to click on this link and browse around to see what I’m talking about. Recently, I was reviewing some old page view statistics and came upon something that piqued my interest.

The old model of compensation over at Seeking Alpha was a penny per page view – 1,000 page views = $10, for example. The new model is a flat $35 plus a penny per page view, but the basic idea remains the same: Read more

Did You Win The Lottery?

lottery copy“Did You Win The Lottery?”

Kind of.

I’ll set the stage. As a member of the 21st century, I know that oral hygiene is important. As such, I dutifully visit the dentist office every 6 months. For those working in the corporate world, you know what a pain (perhaps literally) this can be. Dentist hours are like bank hours, except that occasionally the dentist has to close to deposit some checks. My particular dentist is no exception Read more