With 2024 almost done, I'd like to share my year in review. For the vast majority of investors, this was a banner year, with the S&P 500 up ~25% and real estate prices in most of the country continuing to inch higher despite high mortgage rates. Bitcoin investors, gold investors, and venture capital investors have […] The post 2024 Year In Review: A...
As we wrap up 2024, it’s time to highlight the best posts from Financial Samurai this year. When I started Financial Samurai in July 2009, my goal was to publish three posts a week for 10 years. I achieved that milestone in July 2019, but much like Forrest Gump, I kept on going. Writing has […] The post Best Of Financial Samurai 2024:...
Merry Christmas and Happy Holidays, everyone! I'm spending the week with my parents in Oahu and wanted to share my latest travel adventure. Personally, I can't stand flying—especially in America—because it feels like something always goes wrong. Just as I shared about my transition of paying 30%–50% more for Economy Plus tickets to Honolulu, Hawaii, […] The post Got Downgraded To Economy Class...
When you reach financial independence or retirement you may eventually experience a sense of emptiness. After years of hard work, aggressive saving, and smart investing, you might feel a letdown because the toughest financial challenges are behind you. Based on feedback from readers since 2009 and my own experience after leaving work in 2012, I’ve […] The post Earn Active Income For Wants,...
“Flexing” is a slang term that means showing off or boasting about one's accomplishments, possessions, or skills, often with the intention of impressing others. For example, someone might “flex” on social media by posting pictures of luxury items or sharing stories about their achievements. Personally, I'm not into flexing—what’s the point? It often invites disdain […] The post The Biggest Flex By Men...
With another strong year in the stock market, it’s time for investors to celebrate! While marveling at the growth of your portfolio is satisfying, a more rewarding way to celebrate is to actually spend some of those phenomenal returns on things that bring joy and fulfillment. Stocks, by themselves, provide no utility. We invest in […] The post Cheap, Fun, And Practical Buys...
After speaking to dozens of parents, a principal a couple of times, and a financial aid officer, I've determined the biggest financial misconception about applying to college is that you have to be poor or middle class to receive financial aid. The feedback I've received from everybody is that you can earn a multiple-six figure […] The post The Biggest Financial Misconception About...
Real estate is inherently local, with property values closely tied to the economic drivers and characteristics of specific regions. While understanding the national housing price forecast for 2025 provides valuable context, savvy investors should focus on identifying cities and states with stronger growth potential. After all, outperforming the market is just as crucial as generating […] The post Capitalizing On The Return To...
Now that I’ve shared the 2025 S&P 500 target price forecast, let’s dive into housing price forecasts for 2025. The outlook from housing analysts is positive, with expected gains ranging from -0.4% to 10.8%, and an average of about 3%. The only negative housing price forecast comes from Moody’s, which predicts a slight decline of -0.4% largely […] The post 2025 Housing Price Forecasts: Continued...
Sin—actions deemed morally wrong or harmful—can be difficult to resist, especially when money is involved. A hefty paycheck or a prestigious title can make it easier to overlook the potential harm our work may cause society. Moreover, unless you’re working for free, there’s often a moral trade-off involved—someone or something usually has to bear a cost […] The post Wealth vs. Morality: The Dilemma...
I recently had dinner with Steve Chen, founder of Boldin, in San Francisco, and I’m excited to deepen my partnership with his company. Since first writing about Boldin (formerly NewRetirement) in 2021, I’ve seen how much the platform has evolved and expanded its offerings. The world needs a financial planning tool that takes a holistic […] The post Boldin Financial Planner Review: Financial...
There’s a lot of enthusiasm for Roth IRA conversions and Mega Backdoor Roth IRAs—and for good reason. Paying taxes upfront on your retirement accounts can be a savvy move, especially if you’re in a mid-to-lower federal income tax bracket, as it allows for tax-free withdrawals in the future. That said, thanks to the latest standard […] The post Maximizing Tax-Free Income and Withdrawals...
The 2025 Wall Street S&P 500 forecasts are rolling in, and so far, the outlook is all bullish. I haven't found a single bearish forecast, which is somewhat worrisome. Most firms project the S&P 500 will close 2025 around 6,500—a solid 8.3% gain from the current ~6,000 level. If 2024 ends as expected, with the […] The post 2025 Wall Street S&P 500...
I firmly believe that above-average wealth is largely a result of luck. If we fail to recognize our lucky financial breaks, we risk confusing our abilities with good economic times. This overconfidence can lead to poor decisions and increase the likelihood of financial ruin. Since starting Financial Samurai in 2009, I’ve witnessed fortunes rise and fall. Time […] The post How One Lucky Financial Break...
The Santa Claus Rally refers to a historically observed stock market phenomenon where U.S. equity markets tend to perform well during the last five trading days of the year and the first two trading days of the new year. Historically, the average gain during this seven-day period is around 1.3%. As time has gone on, largely thanks to […] The post The Santa Claus Rally Phenomenon...
Ever since I started saving for retirement in 1999, I’ve been a proponent of tax-deferred retirement vehicles like the 401(k) and skeptical of tax-now vehicles like the Roth IRA. Working in banking, I was already being taxed out the wazoo and had no desire to pay even more. Frankly, I wasn’t even familiar with the […] The post Mega Backdoor Roth IRA: Supercharging...
Health insurance is one of the most complex and aggravating topics for both consumers and providers in the US. Speak with anyone based outside the US and they all will comment about how much better things are abroad versus here. But as most of you would agree, having health insurance is a financial necessity in […] The post Key Factors To Consider Before...
If you want to optimize your life, it's essential to understand the concept of Return on Effort (ROE). The higher your ROE, the more you get out of your efforts, making it an invaluable framework for decision-making. ROE can also help you better utilize your time by prioritizing tasks and opportunities that yield the greatest […] The post Return On Effort (ROE) Is...
Being financially independent means having enough passive income to cover your essential or desired living expenses. A common guideline is to aim for a net worth equal to 25 times your annual expenses, often used as a baseline for achieving financial independence. However, this approach is overly simplistic because it depends on the composition of […] The post A Net Worth Equal To...
I had the pleasure of speaking with Bill Bengen, creator of the “4% Rule” for retirement planning. Bill has been a reader of Financial Samurai for many years and has always been courteous in the comments section when I write about safe withdrawal rates. So, I figured it was time we had a chat to […] The post The 4% Rule: Clearing Up...
After reviewing my analysis on a conversation I had with a financial professional in 2013, I decided to take another close look at my finances. To my surprise, I uncovered a huge gap between my perceived risk tolerance and the reality of my portfolio. Since leaving work in 2012, I’ve generally seen myself as a […] The post Uncover Your True Investment Risk...
One reason many people shy away from competition is that they dislike losing. With often only one winner, the sting of defeat can feel too humiliating. When people stop competing, they can become more fragile over time, to the point where even small setbacks can disrupt their well being. Ironically, the best path to victory […] The post The Power Of Losing: How...
The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power of employer 401(k) contributions, especially as you advance in your career. As you […] The post 2025 401(k) Contribution Limits: Bigger...
With Donald Trump set to become the 50th President of the United States, it’s natural to wonder what this new administration could mean for your finances. For most people under 30, a change in leadership might not significantly impact financial planning. In your 20s, you’re often not earning enough or rich enough for a president’s […] The post Financial Planning Through Changing Presidencies:...
Every time a political candidate asks if you're better off than four years ago, I can’t help but chuckle. Their implication, regardless of party, is always that you're worse off and that they are the answer to your problems. The Democrat argues that things went downhill under the Republican, and vice versa, and we’re often […] The post Four Years Later, You’re Likely...
The IRS has announced new income limits for its seven tax brackets for 2025, with thresholds increased by about 2.7% to adjust for inflation. This follows a 5.4% increase in 2024 and a historically large 7% bump in 2023 due to inflation. While reaching a top one percent income is becoming more challenging given the […] The post 2025 Tax Brackets: New Ideal...
Out of all the things you could donate your hard-earned money to, giving to your child's school might not be at the top of your list. If your children attend a private grade school with sky-high tuition, donating to the school might feel even more unnecessary. With so much poverty, homelessness, broken homes, and people […] The post The Surprising Benefits Of Donating...
As an investor, it’s essential to understand that risk assets come with no guaranteed returns. Setting and following a stop loss can help protect your capital, especially if you're an active investor who picks individual stocks. Without stop losses, you could expose yourself to significant losses. Yet, I've come to realize that stop losses aren't […] The post Apply Stop Losses To Protect...
Investing in alternative assets has become an increasingly popular way to diversify beyond traditional stocks and bonds. Wine and whiskey, in particular, are gaining traction due to their potential for strong returns, resilience during economic downturns, and rising demand. If Goldman Sachs and Vanguard's predictions are true for an abysmally low stock market return over […] The post Wine and Whiskey: Investing for...
Since the bottom of the global financial crisis in July 2009, the S&P 500 has generally experienced a strong bull market. While there were challenging periods in 2018, 1Q 2020, and 2022, stock market investors have largely been well rewarded. However, Goldman Sachs warns that the good times might be coming to an end. Goldman […] The post Finishing Rich Despite A Low-Return...
Before retiring in 2012, I didn't fear boredom or loneliness. It never occurred to me that I would be bored with so much potential freedom. My main fear was whether giving up a steady paycheck was an impetuous move that could lead me to financial ruin! However, after I left work, I must have told […] The post Overwhelmed, Not Bored: An Unexpected...
October 2024 marks one year since I purchased the most expensive house I could afford. Leading up to the purchase, I wrestled with uncertainty about whether buying such a home was the right move. For most, a home is the largest purchase they will ever make, bringing with it a mix of excitement and worry. […] The post Reflecting On A Year After...
Empower is offering free financial consultations until October 31, 2024, for anyone with over $250,000 in investable assets. I wanted to share my experience speaking with them and how I began my investing journey. If you complete two video calls by the deadline, you'll receive a free $100 Visa gift card. There is no obligation […] The post How Speaking To A Financial...
This guest post is by Vaughn, a long-time Financial Samurai reader who retired at 44 and is now 55. Vaughn's early retirement was driven by necessity rather than choice due to a congenital bone disease. Fortunately, his high income during his working years secured a solid SSDI benefit, and his mother’s foresight provided future rental […] The post Why An 80/20 Stock-Heavy Portfolio...
One of the worst experiences for a homeowner is filing a home insurance claim only to be told it's not covered. After years of paying premiums, the insurance company doesn't deliver when it's needed most. What a disappointment. This disconnect happens because we rarely take the time to review our home insurance policies each year. […] The post A Home Insurance Policy Review...
Retiring early with a severance package is one of the smartest ways to leave the corporate world. Walking away without trying to secure one could leave tens of thousands, or even millions, on the table. I also believe that retiring early is better than retiring rich. For those who choose my preferred retirement path, negotiating […] The post A Severance Package Is The...
As a parent, your top priority is to protect your children until they are old enough to fend for themselves. Protecting your children requires good health, being alive, having resources, self-defense skills, and using common sense. If you’re missing one of these, the chances of your children and partner being harmed go up. After a […] The post Effective Ways How To Protect...
There are two things most financially-conscience people aspire to: retiring rich or retiring early. But which is better? Many people who haven't retired believe early retirement sounds fantastic, especially since so many are disengaged from work. On the other hand, who wouldn’t want to retire rich? However, to retire rich, you typically have to work […] The post Why Retiring Early Is Obviously...
For about 10 years, my father has been my primary editor on Financial Samurai. When my father isn't available, my wife steps in. This system has allowed me to maintain a consistent publishing schedule of three posts a week with a relatively high standard of quality. Typically, I spend 1.5–3 hours writing a post. Then, […] The post Artificial Intelligence Put My Dad...
I remember being a broke college student during my senior year at The College of William & Mary. A group of us gathered at the Spanish House, the language immersion dorm where we lived, to brainstorm easy ways to make money. None of us had job offers yet, and we were anxious to prove to […] The post Government Grift As A Lucrative...
Recently, I hit a major milestone in my journey to overcome what I like to call “frugality disease.” I spent $160 for an hour of private lessons for my two kids. In the past, I would’ve never paid such an amount. I’ve always been the type to teach them things myself, like swimming and bicycling. […] The post The Curious Inability To Spend...
Have you ever stepped into a home and immediately felt cozy, even in the middle of a busy city? You can’t quite pinpoint what makes it feel so comfortable and serene, despite the hustle and bustle outside. In this post, I’ll share the various elements that come together to create that warm, welcoming atmosphere. Living […] The post What Creates That Cozy, Nestled...
At long last, after four years, the Federal Reserve has finally cut the Fed Funds rate by 50 basis points, bringing the target range down to 4.75% – 5%. Expectations suggest we’ll see another 50 basis points cut in 2024, with a total reduction of 100 basis points by the end of 2025. Fed Chair […] The post The Biggest Concern After Fed...
If you're increasing your recommended safe withdrawal rate for retirement now, you're likely making a mistake. You might be inadvertently top-ticking the market as the Fed embarks on what is likely a multi-year rate cut cycle. One of the main reasons the Fed is cutting rates is due to growing weakness in the labor market. […] The post Increasing The Safe Retirement Withdrawal...
With record-high home equity and declining mortgage rates, the temptation to do a cash-out refinance is growing. I’ve certainly considered it myself. However, after careful reflection, my conclusion is that it's probably not the best move. Having written about refinancing since 2009, I’ve seen too many unfortunate cases where people took out a Home Equity […] The post Resist The Temptation To Do...
In my post about illegal immigration, a commenter pointed out that I was lucky to avoid greater financial consequences from my “car accident.” It turns out that the maneuver where a car accelerates from a stop and then suddenly slams on the brakes is a common insurance scam. This tactic is known as the “sudden […] The post Car Insurance Fraud As A...
Like millions of others, I watched with intrigue the first—and potentially only—Donald Trump and Kamala Harris presidential debate. One of the most important topics discussed was illegal immigration and how the Biden/Harris administration allowed millions of illegal immigrants to enter the country. If you're willing to flee your country and attempt to enter America illegally, […] The post Bumped Into An Illegal Immigrant...
At long last, the time has finally come for the Fed to begin cutting rates in September. As a result, real estate investors will likely benefit from a tailwind over the next couple of years, after a rough prior two years. Mortgage rates peaked in October 2023 but rose again from December 2023 through April […] The post Maximizing Real Estate Returns In...
In 2013, Students for Fair Admissions (SFFA) filed a lawsuit against Harvard University in the U.S. District Court in Boston. They alleged that Harvard's undergraduate admission practices violated Title VI of the Civil Rights Act of 1964 by discriminating against Asian Americans. As an Asian American, I was intrigued. After lower courts upheld Harvard's limited […] The post MIT and Yale’s New Class...
One of the investing strategies growing in popularity with the wealthy is Direct Indexing. Before my consulting stint at a fintech startup in 2024, I had never really heard of Direct Indexing. If I did, I likely assumed it simply meant directly investing in index funds, which many of us already do. However, Direct Indexing […] The post Direct Indexing: A Growing Investment...
In April 2017, I made a commitment to be a stay-at-home parent for the first five years of my son's life. When my daughter was born in December 2019, I made the same commitment for the sake of equality. Research shows that the first five years are the most crucial for a child's development. Supposedly, […] The post Careful Giving Up Your Career...
Since I purchased my house in October 2023, I’ve been feeling broke. I’m living paycheck to paycheck to cover my bills and fund venture capital calls. In fact, even after realizing I had missed a $25,000 capital call, it took me another week to pay it off because I didn’t have enough money on hand. […] The post The Broke Mindset: Your Contrarian...
Last month, I missed a $25,000 capital call without even realizing it. The Managing Partner of the fund, a friend I've known since business school, texted me while he was on vacation. He wrote, “Hi Sam—hope you're having a good summer. I'm texting from Holland—sorry for the quick note, but just a reminder that the […] The post Consequences Of A Limited Partner...
Needless to say, a $20 million net worth is a substantial amount of money. It firmly places you within the top 1% of net worth, with the current threshold around $13 million. Previously, we discussed how a $10 million net worth, and even a $5 million net worth, are both ideal amounts for retirement, depending […] The post A $20 Million Net Worth...
Like most people, I enjoyed watching the Olympics. Some of us might even imagine our children becoming elite athletes one day. Unfortunately, becoming a great athlete is prohibitively expensive for most people, requiring significant time and money to achieve greatness. I've played sports all my life and love the activity. Sports bring people from different […] The post To Be A Great Athlete...
If you're a real estate investor with children, you may face two significant challenges. The first challenge is holding onto your rental property for as long as possible. You understand that the longer you own real estate, stocks, and other risk assets, the more likely you are to build wealth. However, as you grow older […] The post Rental Property Maintenance With Your...
With the real estate industry finally lowering commission rates after August 17, 2024, a battle is brewing among brokerages and agents to win business. For example, Sotheby's has decided to charge 2% to the seller and 2% to the buyer—or even less—to stay competitive. Other brokerages will likely follow suit. For individual real estate agents, […] The post Performance-Based Commission Rates By Top...
I recently received an email from an agent at Sotheby’s, a prominent real estate brokerage with 1,115 offices located in 84 countries and territories worldwide, and I thought it was worth sharing. The email likely originated from Sotheby’s senior management and was then distributed to agents, who could choose to send it to their prospective […] The post Proof The Real Estate Industry...
In a previous post, I discussed the futility of working when your net worth is declining. During a stock market crash or recession, your Return on Effort (ROE) for working drops significantly. Therefore, the only way to increase your ROE is to work less, not more. At some point in your life, you’ll reach an […] The post The Minimum Investment Amount Where...
The latest stock market correction cost me about five times what I made consulting part-time for four months. If I were smarter, I would have sold 100% of my rollover IRA before stocks started to tumble, then bought back in several weeks later. Alas, I don't possess such acumen. This experience got me thinking about […] The post The Pointlessness of Working When...
Life is easier when you can make a positive connection with other people. As I discovered recently, creating a connection with your service provider can also save you money or provide you better service. One of the ways I'm decumulating wealth is by spending money on massages. I love getting massages, especially after a lot […] The post Creating Connections To Save Money...
On July 16, 2024, we had a mini-stock market crash with the S&P 500 declining from 5,667 to 5,186 by August 5, 2024 (-8.5%). The NASDAQ saw a larger drop, falling from a high of 18,647 on July 10, 2024, to 16,200 on August 5, 2024 (-13%). Most investors anticipated a correction due to elevated […] The post Stock Market Crashes Can Change...
Starting at age 45 in 2022, I consciously started focusing on decumulating wealth. I realized that my life was likely half over, and I needed to start spending more to prevent dying with too much money. If I died with too much money, it would mean that I had wasted a lot of time and […] The post How To Decumulate Wealth: A...
In today’s world, we are increasingly aware of the challenges that affect our mental health. Many of us experience mental health conditions ourselves or know someone close to us who does. The difficulties of day-to-day life can cause significant anxiety about what the future holds. We've discussed my parental existential crisis and money dysmorphia, both […] The post Mental Health’s Impact On Life...
Money dysmorphia is a negative and unrealistic perception of one's financial wellness or position. If you have money dysmorphia, you might constantly worry about your finances, even if you are doing well for your age. One significant reason for experiencing money dysmorphia is the unhealthy comparison with others facilitated by social media platforms like Instagram, […] The post Money Dysmorphia May Be Growing...
With elections approaching, let the political mudslinging and insults begin! This time, its regarding being childless and loving cats. Republican VP nominee JD Vance said this during an interview with Tucker Carlson: “It doesn't make any sense that we turned our country over to people who don't really have a direct stake in it. All […] The post The Economics Of Being A...
After publishing my post, “When To Stop Contributing To A 529 Plan,” I felt a sense of emptiness. For years, I had been trying to find a logical way to decide when to stop saving for my children's college education. When I finally figured out the answer to my financial obligation, I lost some purpose. […] The post A Parent’s Existential Crisis: When...
After 12 years of FIRE (financial independence retire early), I went back to work. Unfortunately, I only lasted four months. Here's my story of what went wrong. I purposefully waited months to release this post to ensure I was thinking logically and not emotionally. From the end of November 2023 through March 2024, I re-entered […] The post Went Back To Work And...
I'm a fan of both stock dividends and rental property income, my two favorite sources of passive income. When younger and less wealthy, rental property income may be preferable. As you age and accumulate wealth, you'll likely appreciate stock dividend income more for its simplicity. However, stock dividend income's main drawback is that it requires […] The post Why Rental Property Income Is...
There's a classic saying, “Youth is wasted on the young.” It's meant to convey that those who are young lack the perspective to appreciate all the advantages of youth and thus take it for granted. After more than seven years of being a parent, it is clear to me that not having kids is a […] The post Not Having Kids Is Your...
Everyone with children should contribute to a 529 plan. It is a tax-efficient way to save for college since none of the gains are taxable if used for approved college expenses. Today, it costs about $200,000 in total for four years at the most expensive public colleges and about $400,000 for four years at the […] The post When To Stop Contributing To...
The failed assassination attempt on Donald Trump reminds us that more important than political bickering is the value of life. I hope there will be a coming together of both parties to help heal and strengthen the spirit of the American people. One inch to the right and Trump would probably be dead today. After […] The post What A Trump Presidency Means...
We've all heard the phrase, “Be greedy when others are fearful, and fearful when others are greedy.” But what about being even greedier when others are greedy?! As I sat peacefully in the hot tub recently, I began to recollect all the ways I wasn't greedy enough since graduating from college in 1999. If only […] The post Being Even Greedier When Others...
If you have a rental property that is generating positive cash flow and is expected to appreciate in value over time, then you must hold onto it for as long as possible. The problem, however, with being a landlord is that you might have tenant issues that make you want to sell. Being a landlord […] The post View Your Tenants As Guardians...
If you own a rental property and are thinking of selling, don't do it unless you absolutely have to. To build great wealth, aim to own your rental property for as long as possible. As fate would have it, my great tenants of two years and two months gave me their 30-day notice while I […] The post Don’t Sell Your Rental Property...
During a recent liquidity crunch, I kept thinking how nice it would be to have more cash sitting in my bank account. Once I received a $106,000 real estate capital distribution, I felt a tremendous relief. But then I was faced with the somewhat stressful decision of how to reinvest it. My private real estate […] The post Having Cash Could Make You...
In the second half of 2023, I significantly impacted our passive income, causing our household to technically lose its financial independence. Prior to this, we had been financially independent since 2012, when I left my banking job. My goal now is to regain financial independence by December 31, 2027. To achieve this, I need to […] The post The Grind Back To Financial...
After taking my family on a nine-day vacation to Honolulu, Hawaii, my plan to relocate there is back in the cards! Since 2014, two years after retiring from my finance job, I've been contemplating moving back to Honolulu to spend more time with my parents. However, actually making the move has been much harder than […] The post The Challenges Of Living And...
As an investor, understanding financial ratios is important to help assess the current state of a company. For example, we have P/E ratios, debt/equity ratios, EV/EBITDA ratios, interest coverage ratios, and so many more. We then compare each ratio to another company's financial ratio to make a more informed investment decision. As someone who worked […] The post The Most Important Personal Finance...
A large part of building wealth involves delaying gratification. Therefore, you might find yourself wondering whether to buy your dream home now or wait for a better price. But what if you wait too long and your dream home disappears forever? You might end up kicking yourself later for trying to save money when you […] The post Buy The Perfect Dream Home...
If you bought a home during a high-interest rate environment, it's wise to prepare for either a mortgage refinance or a recast. Interest rates have been gradually coming down since their highs of 2022, and I suspect millions of existing homeowners will eventually be able to reduce their monthly mortgage payments. After writing my post […] The post Letting An ARM Reset Is...
Since 2003, I've been climbing up the property ladder to find the perfect house in a big city. What I've realized is that there's no such thing as the perfect house. There's a good-enough house or an almost-perfect house, but there's always at least one or two things missing to make a house ideal. Additionally, […] The post The Perfect House To Raise...
If you want career, financial, and social success, don't beat up your opponents too badly while smiling if you know what's good for you. This advice might sound odd, but not adhering to it can have tremendous negative consequences. Anyone who has ever jet-skied knows it's impossible not to smile while riding the waves. Well, […] The post Don’t Beat Up Your Opponents...
During my days of purchasing homes with mortgages, I had a fondness for adjustable-rate mortgages (ARMs). The appeal lay in securing a lower interest rate compared to a 30-year fixed-rate mortgage. Further, it's better to align the fixed-rate duration with my planned homeownership tenure. With the average duration of homeownership being approximately 12 years, opting […] The post No Rush To Pay Off...
When my son was born in April 2017, I promised to become a full-time father until he turned five. I was so serious about this commitment that I sold our largest rental property to free up time. This property was supposed to be our crown jewel for my wife and my retirement plans. However, something […] The post From Full-Time To Part-Time Fatherhood:...
One of the most common pushbacks I get from some of my investing and economy-related articles is that the stock market isn't the economy. To conflate the two would be a mistake. I agree since not everybody owns stocks. Therefore, not everybody will benefit from rising stock prices. As an example, here's a comment I […] The post The Stock Market Is Absolutely...
Wondering how much to spend on vacation while being fiscally responsible and still having a good time? In this post, I offer a vacation spending guide to help you manage your spending responsibly without compromising on fun. I came up with this guide because I'm not sure people realize the true cost of their vacations […] The post A Vacation Spending Guide: The...
Have you ever feared running out of money? I have. This fear is why there's a phenomenon called the “one more year syndrome,” where workers keep working to save more, even though they've run the numbers and know they have more than enough to live comfortably in retirement. Yet, 10 years later, they are still […] The post You Will Never Run Out...
For over a decade, I've been witnessing a phenomenon that has left me scratching my head. A commenter will say how the economy is suffering and people are experiencing financial hardship. Then, when I ask them about their personal hardships, they say they're doing great. This disconnect has been repeated over and over until I […] The post The Financial Doom And Gloom...
It's fascinating how two people can interpret a single image so differently. The same holds true for how homeowners and renters perceive the current economy. According to all the data, it's clear that the economy is robust. However, the degree of its strength depends on whom you ask. The rent versus buy debate has raged […] The post How Homeowners And Renters See...
I've now paid cash for a home twice: once for a fixer in 2019 and again for a fully remodeled home in 2023. In this post, I'd like to share some of the psychology of paying cash for a home, given many decisions go into it. I know some of you think paying cash for […] The post The Intricate Psychology Of Paying...
I believe in personal responsibility. So should you. If we take responsibility for our actions, we will end up wealthier and lead better lives. If you father a child, you had better step up and take care of your child until they are adults. None of this “see you later” nonsense while you shack up […] The post Personal Responsibility Is Important: How...
Money is great, but it can also create awkwardness among friends, colleagues, or even strangers. In this post, I want to share an awkward money situation that dragged on for months. In the end, the money situation was resolved. However, it made me realize that we personal finance enthusiasts are an unusual bunch. It also […] The post An Awkward Money Situation Reveals...
If you want to invest in venture capital, I believe it's more beneficial to invest in a venture capital fund than in individual private companies. By investing in a venture capital fund, you will not only decrease your chances of losing money but also increase your chances of earning a positive return. I've been a […] The post Why Venture Capital Funds Beats...
With the New York Times article on Fat FIRE, I've been thinking a lot more about the repercussions of achieving financial independence and retiring early. One of those repercussions is that financial independence can turn you into stingy person who is unwilling to give! Every year, my kids' Mandarin immersion independent school hosts a fundraiser […] The post The Stinginess of Financial Independence:...
Originally, I planned to title this post, “Getting Rich by Getting Lucky Doesn't Feel So Good.” However, after some time, I realized that getting lucky actually feels better over time! This change in sentiment has profound socioeconomic implications, as it may lead us to hoard our wealth and create more inequality. On May 10, 2024, […] The post Getting Rich By Getting Lucky...
Income taxes can hinder wealth creation. Fortunately, for Americans seeking to save on taxes, there are nine states without income tax where we can choose to reside. These states are listed below in alphabetical order: Ideally, you'll secure a fantastic job and find your soulmate in one of these nine income tax-free states. As your […] The post The Best No Income Tax...
Understanding the fundamentals of personal finance is pivotal for kids to successfully launch into the world of adulting. Money skills are necessary to navigate effectively through everything from life's humdrum day-to-day tasks to its elaborate complexities. Yet what surprises me is that most schools are still not required to teach financial literacy to students. Due […] The post Raising Money-Smart Kids: A Guide...
On August 7, 2023, I received an email from Amy X. Wang, the assistant editor at the New York Times Magazine, inquiring about the modern-day FIRE movement and its Fat FIRE offshoot. Amy is a self-proclaimed FIRE enthusiast herself who has worked side hustles to make extra money and used rewards points to save. As […] The post Behind The Headlines: My Experience...
One of my ongoing challenges as a writer is explaining financial concepts in an easy-to-understand manner. With a background in business school and 13 years at Goldman Sachs and Credit Suisse, financial concepts come naturally to me. Despite writing over 2,500 personal finance articles since 2009 on Financial Samurai, however, some concepts still get misunderstood […] The post Navigating Retirement: Dynamic Safe Withdrawal...
In October 2023, my passive income took a significant $150,000 hit, representing a decrease of 39%, following the purchase of a new house. It was funded by proceeds from selling public stocks and bonds. The decision to buy the house with cash was agonizing, as we didn't need a nicer home. It also meant we […] The post Why Earning Less Passive Income...
Understanding how home prices fluctuate over time is one of the most intriguing insights gleaned from my post on the reasons behind property bidding wars. Understanding how prices change over time will empower you to make more informed purchases in the future. I contend that timing the housing market is comparatively simpler than timing the […] The post Analyzing Home Price Dynamics: A...
Well folks, as anticipated, bidding wars are back with a vengeance, at least here in San Francisco. If I were a real estate agent, I would never encourage my clients to engage in a bidding war. Winning such a war often leads to what's known as the “winner's curse.” This term signifies paying a price […] The post Understanding Why People Get Into...
Despite my extensive experience of 13 years working in international equities, living abroad for the same duration, and visiting approximately 60 countries, I don't allocate much of my investments to international stocks. I believe the risk outweighs the potential reward, especially when there are already numerous lucrative investment opportunities available in the United States. If […] The post Investing In International Stocks Is...
My life has been filled with rejections, and I've finally come to embrace rejection as a natural part of life. To me, being rejected is akin to the urgent need to visit the bathroom after indulging in too much Taco Bell. The discomfort is undeniable at first as your stomach sours from the inside out. […] The post Embrace Rejection! How Getting Denied...
Amidst a recent whirlwind of car maintenance expenses with my trusty nine-year-old Range Rover Sport, I embarked on a quest to find the most budget-friendly car brands for long-term upkeep. With my finances feeling the pinch, I'm on a mission to squirrel away as much cash as possible over the next three years to regain […] The post Cheapest To Most Expensive Car...
Since middle school, I've embraced frugality, largely influenced by my parents' thrifty habits. They drove aging cars, donned the same clothes for decades, and preferred water at restaurants. Naturally, I adopted these practices. Today, I still drive a nine-year-old car, opt to repair rather than replace my belongings, and typically stick to water when dining […] The post Giving A Gift Card Is...
Contrary to popular belief, it's not the Federal Reserve but the bond market that controls mortgage rates. The Federal Reserve regulates the Fed Funds rate, the overnight lending rate for banks, which sits at the shortest end of the yield curve. When the short end of the yield curve rises, it impacts longer duration rates. […] The post Components That Affect Mortgage Rates...
I recently caught up with Ben Miller, CEO of Fundrise in person, about the Innovation Fund's latest investments in private AI (artificial intelligence) companies. Since launching the open-ended venture capital fund in 2H 2022, the Innovation Fund has made a series of promising AI investments that I was eager to learn more about, but unable […] The post Investing In Private AI Companies...
Recently, I received a capital distribution from a private real estate fund, and it couldn't have come at a better time. The experience brought me both joy and relief, prompting me to share it in the hope that it might inspire you to invest more for your future. After purchasing a new home in October […] The post Capital Distributions From Private Real...
Unlike buying a primary residence, where I believe you should buy one as soon as you can afford to, purchasing a vacation property is a different matter. Nobody needs to buy a vacation property; it's a luxury expense that everyone can do without. Chances are, you won't use your vacation property enough times a year […] The post Don’t Buy A Vacation Property...
In 2007, I had a dream of taking my future family on a ski vacation. I was an avid snowboarder and my wife enjoyed the tranquility of Lake Tahoe. After receiving a good bonus, I bought a two-bedroom, two-bathroom condo at Everline Resort in Palisades. Our son came ten years later, but we didn't go […] The post Family Ski Vacations: The Cost...
Tipping has become increasingly pervasive, leaving many wondering how much to tip without feeling like a miser. To alleviate this dilemma, I've crafted a tipping guide to help you navigate gratuities with confidence. This guide not only suggests appropriate tip amounts but also explains the rationale behind them. In the past, tipping was a discretionary […] The post A Tipping Guide To Counteract...
The rich are frequently criticized for not contributing their fair portion of taxes. However, when examining income taxes, it becomes evident that the wealthy actually contribute more than their fair share. Here's a chart displaying the proportion of income taxes paid by different income groups from 2001 to 2021. In 2001, the top 1% (considered […] The post The Rich Pay More Than...
After delving into the exorbitant prices of new luxury cars, I've come to the realization that a larger segment of the population is purchasing such vehicles than I initially thought. This trend poses a significant problem for those striving for financial freedom, which is why I've come up with the House-To-Car Ratio guide. I see […] The post The Right House-To-Car Ratio For...
During the global financial crisis in 2008 – 2009, I expected the San Francisco Property Assessor Office to automatically lower my property tax bill. After all, home prices had topped out at the end of 2006 and had declined about 5% a year for three consecutive years. Instead of receiving a property tax bill reduction, […] The post Downgrade Your Property Statistics Online...
If you're a book collector, I wanted to give you a heads up that the first print of the first edition of Buy This Not That is almost sold out. My editor at Portfolio Penguin informed me that the second print of the first edition will arrive in their warehouse on April 24, 2024. Subsequently, […] The post Investing In First Print, First...
Education is the key to freedom for all of us. Therefore, I've made the decision to pursue a doctorate degree instead of seeking a fancy tech job. Specifically, I plan to earn a Doctorate in Business Administration with a focus on real estate from UC Berkeley. Considering my MBA from UC Berkeley in 2006, my […] The post Getting A Doctorate Degree Instead...
In 2002, I foolishly bought a new luxury car, a Mercedes Benz G500. I had to just gotten a raise and a promotion to Associate so I thought I had might as well blow all my money. The G-Wagon cost $78,000 out the door, which was actually a good deal at the time. Just a […] The post New Luxury Car Prices Are...
Who stands to gain the most from the settlement reached with the National Association of Realtors regarding commission price collusion? The clear beneficiaries are residential real estate investors and owners. Why? Because they were the ones burdened with paying the so-called “standard” real estate commission ranging from 5% to 6%. Following the judgment against the […] The post Why Every Residential Real Estate...
Now that I'm on a quest to save money and improve my cash flow, I've stumbled upon some new ways to save that I hadn't really considered before. Let me share with you my latest realization about how good relationships can help you save money. One of my expenses is a $180/month private sports club […] The post How Good Relationships Can Save...
If you're aiming for a more cost-effective lifestyle, you might find it surprising that opting for a more expensive home over a median-priced one could be the way to go. While it may seem counterintuitive, let me explain. Since purchasing a pricier home in the fourth quarter of 2023, my family and I have been […] The post For A More Affordable Life,...
Lately, I've been pondering why I tend to have less admiration for men who claim to be retired but have a working spouse. Is it fueled by envy? It's possible, considering I wouldn't mind if my wife were the breadwinner, easing some of the financial strain on me. The sentiment is akin to observing several […] The post A Provider’s Clock For Men...
Exciting news for homesellers and homebuyers! The National Association of Realtors (NAR) has reached a settlement in its lost $1.8+ billion lawsuit on price fixing and collusion, agreeing to pay $418 million in damages. This settlement marks a significant shift in the homebuying and selling business model, where sellers traditionally paid both their broker and […] The post The NAR Settlement’s Impact On...
If you've been feeling down despite the apparent strength of the economy, I can relate. Despite stocks and real estate reaching near all-time highs, there seems to be a growing silent recession among Americans. Here are the primary reasons why I believe some of us don't feel better despite the apparent strength of the U.S. […] The post A Silent Recession: Why You...
I've faced significant criticism for encouraging my wife to re-enter the workforce after being retired since 2015. However, it's important to clarify that she hasn't been truly retired. Instead, she has been actively engaged as a full-time mom since 2017. In addition, she has helped do a lot of the operations and editing for Financial […] The post Life Insurance Is A Reason...
When I speak to the media, one of the most commonly asked questions I get is whether I had to make significant sacrifices in my pursuit of FIRE (financial independence and retire early). When they refer to sacrifices, what they really mean is whether I missed out on the typical fun experiences of a young […] The post The Sacrifices We Make To...
Zillow recently released an intriguing study that outlines the income needed to afford a “typical home” in different cities. The study considers a 10% down payment and utilizes the Zillow Home Value Index to determine the median home price in each city. Let's compare the income required to purchase the median home in each city […] The post Income Required To Afford A...
With cash flow running tight, I've embarked on a mission to trim unnecessary expenses from my budget. In times of surplus cash before my home purchase, I hadn't scrutinized my expenses for years. It's not that I was lazy about budgeting; instead, I've always embraced the “pay myself first and spend the rest” strategy. Each […] The post Three Sneaky Expenses That Are...
One of the most effective ways to build semi-passive income is to own your primary residence, live in it for several years, then rent it out and purchase a nicer property. If you're aiming to retire early, over a 20-year career, you could easily build a rental property portfolio consisting of 3-5 units. This has […] The post The Best And Worst Times...
Net worth composition for the top 1% The post Obtaining A Top 1% Net Worth Is Easier Than Ever Before appeared first on Financial Samurai. from Financial Samurai via Finance Xpress ...
Now that cash flow is tight, I've reviewed all the expenses where I could potentially cut. One such expense is a private sports club membership. I joined the club in February 2023 when it was raining nonstop for three months. I was getting cabin fever so I decided to pay $180 a month for access […] The post A Private Sports Club Membership...
For those of you who are looking to upgrade homes, let me tell you a sad truth. I climbed to the top of the property ladder with my latest home purchase, and after four months, I feel no happier. Whenever someone would congratulate me about my home purchase, I felt nothing. What's there to celebrate […] The post Climbed To The Top Of...
In 2009, I established my first rule of FIRE: generate enough passive income to cover your basic living expenses. Once achieved, you attain financial independence and the freedom to pursue your desires. Since then, various permutations of FIRE have emerged, one of which is Coast FIRE. Coast FIRE involves front-loading your retirement savings and then […] The post The Most Dangerous Early Retirement...
After receiving significant criticism for my post, Embrace Living Paycheck-To-Paycheck To One Day Be Free, I find myself contemplating the existence of a net worth level that brings about serenity and inner peace, prohibiting one from feeling troubled. Is there a financial threshold beyond which emotional turmoil becomes unacceptable? Despite my attempt to turn a […] The post Net Worth Serenity: When Feeling...
I once encountered an actor in Paris who had secured minor roles in significant films, courtesy of his friendship with Leonardo DiCaprio. Despite having the opportunity to continue with these smaller roles due to his connections, his pride led him to pursue larger roles. Regrettably, 10 years later, I haven't seen him in a single […] The post Don’t Let Pride Get In...
Living paycheck-to-paycheck is one of the most unpleasant financial experiences. Not only does it mean needing to spend everything you have to make ends meet, it also creates an ongoing feeling of despair. You might even have to get into debt to pay your bills. And if you aren't careful with debt usage, it may […] The post Embrace Living Paycheck-To-Paycheck To One...
Money is great. Money provides freedom. But you will always regret sacrificing love for money. When you get older, you will realize how true this statement really is if you haven't found someone. Life is simply not as fun if you don't have someone to share it with. Further, finding “the one” might also want […] The post You Will Always Regret Sacrificing...
Our first visit to the emergency room unfolded three years ago when our daughter displayed signs of anaphylaxis due to a food allergy. Unsure of what steps to take, we dialed 911, which led to an ambulance arriving promptly to transport us 16 minutes to the nearest hospital. The paramedics administered epinephrine, then the ER […] The post Going To The Emergency Room...
A common suggestion people have made to help me regain my financial independence is to move to a cheaper area of the country or the world to save money. I've resisted relocating so far because I believe the excitement of living in a big city is worth the cost. I've lived in big cities all […] The post The Excitement Of Living In...
In general, the longer you stay invested, the greater your chance of making money. To help you maintain a long-term investment approach, it's imperative to develop an investment thesis. Drawing from my experience in investing since 1995, it's quite easy to get shaken out of a particular investment. I observed panic selling during the 2000 […] The post An Investment Thesis: The Key...
During my time living abroad, approximately 90% of my friends were fluent in a second language besides English. I attended schools such as the International School of Kuala Lumpur for middle school and Taipei American School for elementary school. Upon relocating to McLean, Virginia, for high school, I noticed a decline, with only about 50% […] The post The Value Of A Second...
I've been documenting my journey in Financial Independence Retire Early (FIRE) since July 2009. To the best of my knowledge, I can't identify any other blogger who commenced their FIRE journey earlier, is still currently retired or unemployed, and has maintained a consistent writing presence like I have on Financial Samurai. When I began sharing […] The post I’m Unwilling To Change The...
After publishing my post on no longer being financially independent, several media outlets picked up the story and thousands of comments on their respective platforms ensued. The main criticism was that my expenses were way too high. As a result, I thought it would be useful to discuss the impact greed and inflation have on […] The post Inflation And Greed: The Biggest...
My family and I could have been set for life. Instead, due to my inability to beat back real estate FOMO, I blew up our passive income. And because our passive income is now much lower, we are no longer financially independent. Desire is the cause of all suffering. Due to my desire to own […] The post Blew Up My Passive Income,...
In 2017 and 2019, I superfunded two 529 plans for my two children. Since then, my wife and my parents have also regularly contributed to the two college savings plans. You would think with all this aggressive saving, I would feel confident we'll have enough saved to pay for college. But I'm still unsure. Given […] The post A 529 Plan Is Not...
When my kids were born, I made a promise to be a stay-at-home father for the first five years of each of their lives. Mission accomplished with my son in April 2022. But there's still some time to go before my daughter starts full-time school in Fall 2024. Anticipating the completion of this step, I'm […] The post How Parents Can Fill The...
