How I Invest – Timing

Welcome to the last in a series of articles discussing how I choose to invest.

First, we explored the different investment accounts that I utilize. Then we went into the funds that I invest in.

Today we’ll be exploring the timing of my investments.

But first, we need to get into a debate on investment timing.

Continue reading “How I Invest – Timing”

How I Invest – Investments

Way back in the glory days of October I started laying out a description of how I invest.

Previously, we looked at the different accounts that I use – the buckets that hold my investments. Now it’s time to look at the investments themselves.

What you’ll find is that I don’t follow the traditional advice here. I don’t think I’ve seen my strategy advocated by anyone anywhere. I’ve honestly been a bit hesitant to lay it out because it feels a bit odd coming from someone who is all about optimizing.

But here is where I will admit to, explain, and defend, my investing strategy.

Continue reading “How I Invest – Investments”

FinCon and a New Direction

I recently travelled out to Dallas for FinCon.

FinCon is an annual gathering of folks that write and podcast about money. It’s four days of panels, talks, workshops, networking, and parties.

It was a lot of fun. I met some Internet friends in real life for the first time and I made a bunch of new friends. I learned a lot of new things, talked to a lot of great people, and drank a lot of free drinks.

Photo courtesy of Route to Retire

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How to Control (and Minimize) Negative Emotions

Stoicism has gotten a bad rap.

These days, when people think “stoic,” they think “emotionless.” “Indifferent to pleasure and pain” is now literally a definition of the word “stoic.”

That’s not what the Stoics were going for.

For the Stoics, the goal is not to avoid all emotion. It is to minimize negative emotion. I can see where people get confused, though.

I am often accused (usually jokingly, but often enough to take the hint) of being emotionless.

I disagree with this assessment. I feel plenty of emotions. I just try not to dwell on negative emotions.

And I try not to act on them, either. Continue reading “How to Control (and Minimize) Negative Emotions”

Why You Should Ask Why

Gretchen Rubin wrote a book on forming habits called Better Than Before.

There are a few other good books on habits (I recommend Charles Duhigg’s The Power of Habit), but Rubin’s big innovation was identifying different personality types. Some habit-building techniques work for some people, but there are very few universal approaches that work for everyone. Rubin divides her readers into four groups and then provides tips specific to each group.

Under Rubin’s framework, I am a Questioner.

“Questioners question all expectations, and they respond to an expectation only if they conclude that it makes sense. They’re motivated by reason, logic, and fairness. They wake up and think, ‘What needs to get done today, and why?’ They decide for themselves whether a course of action is a good idea, and they resist doing anything that seems to lack sound purpose.”

Beyond habit-building, this is a pretty good view into my permanent mindset. I ask “Why?” about pretty much everything, and if the answer is any variation of “Because that’s how we’ve always done it” then I’m out.

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Everything You Need to Know About the New Republican Tax Plan

A lot of people in the personal finance space tune out politics and recommend that their readers do the same. I don’t agree with this approach. I follow politics closely and stay up to date on policy proposals and all sorts of nerdy wonkery.

That said, when approaching topics for this blog, I make sure that every article has a takeaway that you can use to directly improve your life. That rule helps me stay focused on helping people with my writing rather than just writing about areas of my own interest. This also means I usually don’t discuss policy proposals making their way through Congress.

In the case of the current tax overhaul, I decided that it is worth discussing here. Continue reading “Everything You Need to Know About the New Republican Tax Plan”

When Clickbait Kills

Some articles have been making the rounds on Facebook about a new study on the effects of flu shots on pregnant women. The headlines are bold:

Miscarriages Linked to Flu Vaccine

Annual Flu Shots Linked to Increased Risk of Miscarriage

Alarming Study Links Flu Shot with Early Miscarriage

Could Flu Shots Lead to Miscarriage?

Continue reading “When Clickbait Kills”

Getting Better Results in Less Time

Today I want to explore a quick tool called an 80/20 analysis that can help you achieve better results in a shorter period of time.

The 80/20 analysis is based on the Pareto Principle. This principle was named for Vilfredo Pareto, who found in the late 1800s that 80% of land in Italy was owned by 20% of Italians in the same way that 80% of the peas produced in his garden came from 20% of the peapods. This finding was one of many analyzing inequality and examining how the few end up with so much in our economies.

From this and similar findings of the tilting of economic benefits, Pareto decided that democracy was an illusion and a ruling class would always emerge from the 20%.

In modern parlance, this extreme conclusion has been ignored and the Pareto Principle has become more of a rule of thumb applied to a wide range of areas.

While my interest in politics and economics would push me to examine the implications for modern income inequality and the policy proposals to address it, this blog is about providing tools and information that is helpful to individuals.

So instead, we’ll be looking at the modern version.

(Don’t worry. I’ve found other excuses to talk about bigger issues of politics and economics.)

Continue reading “Getting Better Results in Less Time”