Why Investing in Websites Can Be Lucrative
Once you’re aware of both the potential upside and downside of investing in websites, all that’s left to know is where to find sites to invest in. There are three popular ways to find websites for sale: 1. Search on Empire Flippers: One of the most popular online website marketplaces is Empire Flippers. This is the premium place to go if
Actived: 8 days ago
Here's How Much Investing Returns Matter Based On …
(9 days ago) Investing returns, no matter how good or bad, won’t impact your net worth nearly as much as your savings rate when you’re just starting out. Investing Returns During “Really Good” Years Now consider this thought experiment: Let’s say a “really good” year for the S&P 500 …
Build Wealth with Lazy Portfolios
(6 days ago) One crucial part of lazy investing, though, is to actually be lazy with your investments. Don’t attempt to buy and sell funds based on how you think the market will perform, otherwise you’re just following an active investment approach with index funds. Lazy investing is designed to deliver satisfactory long-term gains.
Investing is About Absolute Numbers, Not Percentages
(3 days ago) These two investors would have accumulated the exact same amount of money after a decade of investing: In dollar terms, each investor would have ended up with the same amount. The only difference would have been in how the investors felt about their performance. The 1950 – 1959 investor would have been elated, while the 1999 – 2008 investor
How to Save $1 Million in 5, 10, 15, 20, and 25 Years
(9 days ago) Investing in low cost index funds is the easiest way to gain maximum investment diversification while minimizing investment fees. 2. While the stock market rarely delivers “average” returns in any given year, it has historically delivered 7% annual returns even after inflation. 3.
The S&P 500 Investment Return Calculator
(Just Now) The strategy of investing $10k in an S&P 500 fund each year for a decade can result in wildly different ending amounts depending on the decade. Fortunately, most investors experience more than one decade of market returns, so an awful decade like the 2000s can be offset by good returns in following years.
The Permanent Portfolio: An Investment Allocation that
(5 days ago) The Permanent Portfolio is an investment portfolio proposed by Harry Browne in his 1980s book Fail Safe Investing. The portfolio is composed of: 25% Total Stock Market; 25% Long Term Bonds; 25% Cash; 25% Gold; Browne argued that this type of portfolio could offer investment growth and a smooth ride for investors. He had a specific reason for
Should You Invest Internationally
(4 days ago) 6 min read. A few weeks ago Meb Faber shared an excellent tweetstorm on international investing that covered three main points: Most U.S. investors are highly concentrated in U.S. stocks. This high concentration will likely lead to sub-optimal returns over the long-run. An easy solution to this problem is to add foreign stocks to your portfolio.
What if You Only Bought Stocks After the Market Had …
(1 days ago) Example: Investing Only After Down Years. First I’ll show an example of how I calculated the returns for both the dollar-cost averaging and the market-timing strategy. If you’re not interested in the math behind these calculations, feel free to skip down to a lower section in the post where I summarize the results. Suppose the year is 1929.
The Bogleheads' Guide to the Three-Fund Portfolio
(9 days ago) Yup, investing is a good place for one to strive to be “average” in. Like Roth’s study pointed out, you can be the market average and still beat nearly 60% of actively-managed funds out there every year. And beating 88% of them over the span of 25 years?! That’s amazing and so incredibly effortless.
The Math That Explains Why Net Worth Goes Crazy …
(2 days ago) Hi Zach, I recently started reading your blog. I’m 48 and have been investing in my 401k for 24 years so I started similar to you. 7% return assumption is a good assumption assuming that you keep your 401k invested in stock mutual funds and eventually getting to a high of about $12,000 per year in contributions.
Advice on Saving & Investing in Your 20s
(1 days ago) Zach is the author behind Four Pillar Freedom, a blog that teaches you how to build wealth and gain freedom in life. He quit his day job as a data scientist in 2019 because he was able to earn enough income from profitable websites to replace his salary.
REITs vs. Rental Properties: Which is Better
(7 days ago) The cons of investing in rental properties include: Active management. When you choose to invest in a rental property, you take on the responsibility of managing, renovating, and marketing the property yourself. This can be more work than most investors are willing to take on. Of course you can outsource this work to a property manager, but
VT vs. VTI: Which Index Fund Should You Invest In
(8 days ago) Investing in index funds is the easiest way to maximize diversification while minimizing fees. 2. Investing exclusively in VTI will give you exposure to every publicly traded stock in the United States, but it will not give you exposure to any international stocks. 3.
VOO vs. VTI: Which Index Fund is Better
(8 days ago) Larimore goes on to explain that investors can achieve the benefits of stock index-fund investing through owning just one fund: VTSAX or VTI, the Vanguard Total Stock Market Index Fund or ETF equivalent. By owning this one index fund, you hold a piece of ownership in all 3,600+ publicly traded stocks in the U.S.
Investing in Socially Responsible Stocks vs. Sin Stocks
(5 days ago) 5 min read. I’ve written before that investing in a broad market index fund is the simplest, most straightforward way for the average investor to gain maximum diversification, earn market returns, and minimize management fees.. An example of one such fund is the S&P 500, which is a stock market index fund composed of the largest 500 publicly traded companies in the U.S.
Why It's So Hard To Outperform Index Funds
(2 days ago) Active investing involves buying and selling individual stocks in an attempt to beat the market. Or more commonly this means paying a mutual fund to actively invest your money for you. Passive investing involves buying an index fund that holds all the stocks available in the market and holding this fund for a …
Why Saving Your First $100k is a Big Deal
(1 days ago) 3 min read. The following chart shows how long it takes to accumulate $1 million by investing $10,000 each year at a 7% annual rate of return: This is one of my favorite charts to show people because it illustrates how wealth accumulation is slow when you’re just starting out, but speeds up as time goes on.
The Math Behind Saving Your First $100k
(9 days ago) I made the same mistake when I first started investing in college – I obsessed over individual stocks and trying to maximize returns when I should have been focusing on increasing my income instead. Recognizing that you should put all your energy towards what you …
Here's the One Fund I'm Investing All My 401(k
(1 days ago) This strategy of investing your own money mirrors the advice offered from Brandon at Mad Fientist in my post where 30 bloggers shared tweet-sized advice they would give to their 23-year old self: Take Control of Your Investing. Virtually every 401(k) plan offers an S&P 500 index fund option to invest in.
I Want to be an Income Machine, Not an Investment …
(4 days ago) But this illustrates the biggest problem with investing while young: even with amazing returns, I didn’t have enough capital invested to make the investment worthwhile. Consider an even more extreme scenario. What if I had invested 10 times this amount? If I had instead invested $5,000, my total dollar return would have been $1,075.
VTI vs. VXUS: Which Fund Should You Invest In
(2 days ago) Investing internationally might not increase your overall returns, but it’s likely to increase your risk-adjusted returns. This means you can earn similar returns with less volatility, which is a benefit that most investors would love to enjoy.
How Often Does the Stock Market Deliver "Average" …
(6 days ago) Investing for the Long Haul. In this post we saw something profound: During individual years, the S&P 500 has delivered anywhere from -38.1% to 53.6% returns. During 40-year periods, though, the S&P 500 has delivered between 4.2% and 8.8% annualized returns. The charts below show this massive difference:
Saving Your First $300k Takes Roughly the Same …
(5 days ago) By diligently saving and investing $10,000 each year at a 5% annual rate of return, you would be able to save $100,000 in about 8 years. Next, you might have a goal to reach $200,000. It turns out it would only take a little under 6 years to go from $100k to $200k, assuming you kept investing $10k each year earning a 5% annual rate of return.
Should You Buy Stocks Now or Wait
(4 days ago) The whole point of investing money now is to have more money later. And what you invest in is dependent on when you’ll need the money. While there are many different types of assets you can invest in, two of the most common ones are stocks and bonds. In general, stocks are more volatile and offer higher returns over the long run while bonds
Do You Actually Have to Start Early to End Rich
(8 days ago) 4 min read. One of the most common pieces of investing advice thrown around is to start investing as young as possible, since this will ensure that you give compound interest plenty of time to work its magic and turn even modest investments into large sums.. There’s certainly some truth to this advice.
The Math & Psychology Behind Lump Sum vs. Dollar …
(9 days ago) Investing is not just a game of numbers. It is largely a game of psychology. As an investor, you have to decide if your goal is to maximize your returns, minimize your losses, or a blend of both. If your goal is to maximize returns, the data tells us that lump sum investing is a better approach.
M1 Finance: My Preferred Platform for Investing
(8 days ago) 4 min read. In this post, I share my favorite platform for investing in both individual stocks and stock index funds: M1 Finance. What is M1 Finance? M1 Finance is an investment management platform that acts as a hybrid between a robo-advisor and a traditional brokerage account.
VOO vs. VFIAX: What's the Difference
(4 days ago) Investing in VOO vs. VFIAX. If you personally would like to follow the advice of Buffett and invest in a low-fee S&P 500 index fund, the only decision you need to make is which S&P 500 fund to invest in. While you can invest in this type of index fund on any major financial platform (Fidelity, Charles Schwab, Merrill Lynch, etc.)
VEU vs. VXUS: Which International Fund Should You …
(8 days ago) Recently Meb Faber shared an excellent tweetstorm on international investing that covered three main points: Most U.S. investors are highly concentrated in U.S. stocks. This high concentration will likely lead to sub-optimal returns over the long-run. An easy solution …
How to Create Your Own Investment Returns
(2 days ago) And while I advocate investing in these asset classes and personally invest my own savings in them, the returns can be largely outside of your control. Sure, you can decide which type of assets to invest in (large-cap stocks, mid-cap stocks, small-cap stocks, apartment REITS, storage unit REITs, short-term bonds, long-term bonds, etc.) and you
Charlie Munger: The First $100,000 is a B*tch
(2 days ago) Charlie Munger: The First $100,000 is a B*tch. At an old Berkshire Hathaway Shareholder Meeting in the 1990’s, a young man asked Charlie Munger for his best advice on creating wealth. The young man complained that he was having a hard time getting started and that his net worth wasn’t increasing as …
S&P 500 vs. Nasdaq 100: Which Index is Better
(3 days ago) Summary Stats. Since 1972, the Nasdaq 100 has experienced slightly higher annual returns (10.8%) than the S&P 500 (10.5%), but it has also experienced much higher volatility. During the bull markets, the Nasdaq 100 has crushed the S&P 500 (the 1990s and the post-2008 market). However, during bear markets, the S&P 500 has performed much better
The Biggest Misunderstanding About Compound …
(3 days ago) Josh invests $8,000 each year and earns 7% average annual returns until age 65, but he doesn’t start investing until age 30. Despite investing more money each year, Josh ends up with less than Edgar by time they both reach age 65: Edgar ends up with a little over …
VTI vs. VTSAX: What's the Difference
(4 days ago) Investing in VTI vs. VTSAX. Once you’ve been convinced that index funds are the most efficient way to invest, the only decision you need to make is which index fund to invest in. For most investors, the way to gain maximum diversification for minimum cost is to invest in a total stock market index fund.
Understanding Power Law Distributions and Their …
(8 days ago) I shared an example last week of how someone can save $500k by investing $10k at a 7% annual interest rate. Each $100k takes less and less time to save thanks to compound interest: This illustrates how net worth increases faster and faster over time thanks to compound interest.
Stock Returns: Small Cap vs. Mid Cap vs. Large Cap
(8 days ago) The market cap of any company can be calculated through multiplying the number of outstanding shares by the share price, which gives you the company’s market cap. In general, the market caps of companies can be classified as followed: Large cap: $10 billion +. Mid cap: $2 – $10 billion. Small cap: $250 million – $2 billion.
A Recap of Warren Buffett's 10 Year Bet on the S&P …
(3 days ago) This bet serves as a nice reminder that 99% of us are better off investing in simple index funds rather than picking individual stocks, jumping in and out of the market, and paying money managers exorbitant fees who promise to deliver above-average market returns. Spreadsheet: Buffet S&P 500 Bet. Related Articles on Index Investing:
How to Apply Zipf's Law to Your Finances
(Just Now) Money and Happiness. Countless studies have shown that more income is associated with more happiness, but only to a certain point, as illustrated by this simple chart from 8000 Hours: It’s pretty easy to understand why. Moving from an income of $0 to $30,000 will pull you out of poverty. Moving from $30,000 to $60,000 might make you less
Things I've Learned from James Clear
(6 days ago) Discipline with saving and investing leads to freedom from money problems. The Best Networking Strategy. Do interesting work. Share your work in public. Like-minded people will find you. Negotiation Tips. Be able to walk away. Be irreplaceable. Have a second option. Reading Makes You Smarter. Reading is food for the mind.