Four steps to invest your 401k rollover and gain clarity on your progress towards retirement

When I orig­i­nal­ly launched this site, I launched with a free course to help peo­ple invest their 401k rollover. It was a 10-part course that went deep, so took about 2 months to com­plete. The feed­back was great, though some want­ed some­thing sim­pler. They wrote: “just tell me what to do”. This group were will­ing to learn […]

Why don’t people invest?

People don't invest because it usually doesn't feel good. When was the last time you participated in something you don't understand, in spite of it not feeling good?

Pause. Clear pre­con­cep­tions. Then ask the void… why don’t peo­ple invest? Let’s even nar­row the audi­ence of peo­ple. People who are edu­cat­ed, with a job, and with some mon­ey to invest. Yet still, why don’t they invest? Many com­pa­nies have a lot of mon­ey rid­ing on the answer to this ques­tion. Their answers… more tech­nol­o­gy. More access. More […]

Investing in Airlines

You may not be investing in an airplane company

I’m fas­ci­nat­ed by indi­vid­ual investors who think they can beat the mar­ket. Who think they can do research with spe­cial insight, beyond what the pro­fes­sion­als can do. How many peo­ple who invest in air­lines real­ize that most of the mon­ey they make comes from the points they sell? This is a great exam­ple of how many […]

Airline Investments

Dividends aren’t everything

Came across this twit­ter dis­cus­sion that’s worth shar­ing. I’m a huge believ­er in div­i­dends, and almost nev­er invest in any­thing with­out one… but a company’s div­i­dend (oth­er than it’s exis­tence) isn’t a rea­son to invest. Retail loca­tions are being closed, malls sit emp­ty. While one twit­ter­er points out that Macy’s stock would be worth less (worth­less?) with­out it’s […]

Your Investing Edge

Everyone's looking for an edge. Few are able to stomach the price. Those that do, reap the rewards.

Let’s pre­tend for a moment that the infor­ma­tion in my book is tru­ly dif­fer­en­ti­at­ing. A way to invest and win all the time. Why can’t peo­ple stick with it? Reading this arti­cle on black­jack card count­ing titled ’sur­viv­ing the con­tin­u­ous chain of dis­ap­point­ments’ helps under­stand why. The key to Thorp’s sys­tem was the abil­i­ty to sur­vive los­ing […]

Who doesn’t love raises?

Investing in dividend aristocrats increasing the likelihood of annual dividend increases, not just quarterly payments.

I came across this great arti­cle on the Kiplinger finance site, 12 Dividend Aristocrats for Every Month of the Year. It lists 12 com­pa­nies and shares some of their div­i­dend his­to­ry. As a group, you’ll get div­i­dend pay­ments every month. Getting paid every month, helps with bud­get­ing and cash flow for sure. Though I like […]

Updates to Dividend Aristocrats and Dividend Kings Lists

Some good additions reward companies with long histories of dividend increases

Dividend increas­es are amaz­ing­ly pow­er­ful in their impact on the com­pound­ing of div­i­dend “pay­checks,” espe­cial­ly for peo­ple with a long term focus on build­ing wealth. Increases com­pound over time, but also ensure pro­tec­tion of the div­i­dend “pay­check” from infla­tion. A New Dividend King There are cur­rent­ly only 19 div­i­dend kings, com­pa­nies with 50+ con­sec­u­tive years of div­i­dend […]

Most powerful force in the universe

The Irrelevant Investor
1/18/2017

Buffett has been rich for­ev­er, but 95% of his net worth was earned after his 60th birth­day.

Read this arti­cle to under­stand the pow­er of com­pound­ing and why even long term thinkers can’t com­pre­hend how things will play out over the long arc of time.

Compounding plays an impor­tant fac­tor in the Elephant’s Paycheck Blueprint because we rein­vest div­i­dends and count on annu­al div­i­dend increas­es (which com­pound on each oth­er year-after-year). We’re com­pound­ing that div­i­dend return because we get div­i­dends from our div­i­dends, and over time, it real­ly adds up. Even after a “short time” like five years, you’ll see real­ly inter­est­ing num­bers if you look at com­pound div­i­dend growth from rein­vest­ing and annu­al div­i­dend increas­es.

It’s anec­do­tal, but after about 4 1/2 years the pay­check from the total­ly ran­dom sam­ple port­fo­lio I put togeth­er increased 75%, and has a pro­ject­ed raise of over 10% for the next year (con­ser­v­a­tive­ly). The anec­dote I like to tell… you prob­a­bly aren’t get­ting 10% a year (year after year) at your job. But your port­fo­lio can.

Part of the rea­son it’s hard to under­stand is that, as I write about it, I have to shift between absolute num­bers (a 10¢ increase) and rel­a­tive num­bers (a 10% increase) as I’m describ­ing dif­fer­ent aspects of what to expect. I don’t think peo­ple under­stand per­cent­ages very well. If I told you you had a $1 a year income from invest­ing, you’d roll your eyes. But, it’s impor­tant. If you had only invest­ed $50, that’s 20% — a fan­tas­tic income per­cent­age.

At a time when peo­ple want quick answers to things, but don’t want to stop and think about what they mean, it’s hard to get read­ers to spend the time to think about what this all means, and why it’s impor­tant. I had some­one inter­rupt me the oth­er day and say:

wow, you’re a real­ly long term thinker.

Yeah. And I hope some of that will rub off on you guys.

10% growth for 25 years is not 250%, it’s 985%!” When you show relatively new investors this kind of thing, it’s like an awakening.”
@ReformedBroker‬
1/19/17