Creating an investment game plan is a crucial part of building lasting wealth. Without one, you're likely to accumulate far less over your lifetime. Now that the S&P 500 has corrected by 20% in 2025, we've officially entered another bear market. Whether this downturn continues, and for how long, is anyone’s guess. One reason I […] The post My Bear Market Investment Game...
As stocks plummet and recession fears grow, there’s one silver lining worth highlighting: the increasing value of your home, if you own one. A home is a fundamental necessity for survival, stocks are not. So, sacrificing your stock portfolio to strengthen or preserve your housing situation can be seen as a net benefit. Many of […] The post Sacrificing The Stock Market For...
Reciprocal tariffs will drive up the cost of most goods, making everyday life more expensive for American households. According to Fitch Ratings, the U.S. tariff rate on all imports has jumped from 2.5% in 2024 to around 22% today. Some research firms estimate the percentage is closer to 30%. As a result, more Americans may […] The post Reciprocal Tariffs Actually Make Wealthy...
Well, folks, after 16 years of diligently writing three free posts a week, I’ve finally decided to erect a paywall. Originally, starting in 2009, my goal was to provide free financial insights for 10 years to help people achieve financial independence sooner. Success! I’ve always believed that if you’re lucky enough to learn something valuable, […] The post Putting Up A Paywall To...
Stagflation is a rare and challenging economic condition where slow or stagnant growth, high unemployment, and persistent inflation occur simultaneously. Typically, inflation rises when an economy is expanding and demand is strong, while recessions tend to bring lower inflation due to weaker demand. Stagflation defies this pattern, making it particularly difficult to address with traditional […] The post Stagflation Is Worse Than A...
One of my goals is to put my kids to work so they can earn money, contribute to a Roth IRA, and learn the value of hard work and the power of investing. By age 18, they'll have roughly 10 years of work experience and compounding behind them. If they earn an average of $7,000 […] The post Various Things Children Can Do...
Back in 2019, I remember being surprised at a survey by toy maker Lego that asked young adults what they wanted to be when they grew up. The top answer was YouTube creator! Of the 3,000 children surveyed between the ages of 8 and 12 from the U.S., U.K., and China, a surprising 33% said they […] The post Helping Others While Making Millions...
To my dismay, my beloved hot tub stopped working the other day. It had been fully operational since 2016, but when I went to visit it for a late morning soak, I found its GFCI circuit breaker not working. When I tried to flip it back on, the circuit popped down within three seconds. I […] The post When To Cut Your Financial...
Since 2009, I’ve been writing about the importance of working to live—accumulating wealth to achieve financial independence and freedom ASAP. But despite years of advocating for this lifestyle, I’ve come to realize that convincing people remains an uphill battle. Instead, I now have proof that live-to-work is back and stronger than ever! “Live to work” […] The post Live-To-Work Is Back And It...
Despite the wonderful peace of mind that comes with owning a home free and clear, deciding to pay off a low-interest rate mortgage early is not always straightforward. If your mortgage rate is low compared to risk-free investment returns, keeping the mortgage and investing excess cash elsewhere often makes more financial sense. What Is Considered […] The post The Only Good Reasons To...
Get excited! After over two years of writing and editing, I’m thrilled to finally share my upcoming new book with you: Millionaire Milestones: Simple Steps To Seven Figures! If you’ve enjoyed my writing on Financial Samurai over the past 16 years, you’re going to love this book out on May 6, 2025. With over 30 […] The post New Book! Millionaire Milestones: Simple...
While visiting my parents in Honolulu this past winter, I ended up driving my dad's 28-year-old beater for eight days. He bought that Toyota Avalon new in 1997—back when I was a college sophomore and he was stationed in Guangzhou, China for the U.S. Foreign Service. I’ve known this car nearly as long as he […] The post Driving A 28-Year-Old Beater Made...
As I sadly watch my stock portfolio correct by over 10%, I find serenity in my paid-off home. No matter how much the stock market tanks, it's comforting to know I'll always have shelter to take care of my family. It's funny, but only active investors, people in charge of their family's investments, or personal […] The post A Paid-Off Home Is A...
Unfortunately, the chances of another recession are increasing, largely due to the uncertainty set forth by the new administration. When uncertainty rises, we collectively tend to spend less and save more. As a result, corporate profit growth may slow, stock prices could fall, and layoffs may increase. Losing money in your investments and then your […] The post The Positive Impact A Recession...
Let's say you've come into a large sum of money—perhaps $1 million or more from stock grants, a bonus, or the sale of a home. Congratulations! After accounting for taxes, the real challenge is deciding how to invest it. Given the significant amount, the last thing you want to do is lose a portion of […] The post A Simple Three-Step Process To...
With fears of a recession rising again mainly due to the Trump administration’s aggressive policy measures—tariffs, spending cuts, aggressive layoffs, and an increasingly combative trade stance—it’s time to awaken the vulture investor within. Both Main Street and Wall Street are at risk of losing a lot of money now. I don’t particularly enjoy the idea […] The post Awaken Your Inner Vulture Investor...
As I watch my stock portfolio correct, I take solace in knowing that my real estate portfolio continues to chug along despite the chaos, fear, and uncertainty. With mass government personnel cuts, new tariffs against Mexico, Canada, and China, a heated Oval Office exchange between President Trump and Ukraine’s President Zelensky, and sharp words from […] The post Chaos, Fear, And Uncertainty: Wonderful...
I recently came across an eye-opening chart by the National Association of Realtors showing that the median age of first-time U.S. homebuyers is now 38 years old. That’s a significant jump from 30 years old between 2008 and 2010. Meanwhile, the median age for repeat buyers has risen to 61 years old. What is going […] The post Waiting For The Perfect Price...
If you don’t believe the world will grant your children a fair chance to succeed, you may want to take matters into your own hands as parents. One way is to set them up for financial independence—ideally making them millionaires before they graduate high school, finish college, or leave home. If your children are millionaires […] The post How To Make Your Children...
If you knew that no matter how hard you tried, success was impossible or practically impossible, would you still push yourself to the limit? Or would you rationally pivot to another endeavor with a real chance of success? Personally, if the odds were overwhelmingly against me, I’m not sure I’d bother pushing so hard. Since […] The post Trying Your Best When There’s...
I keep reflecting on how incredible 2024 was. With the S&P 500 up 23%, Bitcoin surging, and residential real estate climbing in most of the country, personal finance enthusiasts have had an amazing year. The investment gains almost feel like free money—and who doesn’t love getting something for free? If you read Financial Samurai and […] The post The Million-Dollar Mindset of Personal...
Unless you are incredibly rich, it's highly likely that your vacation property is smaller than your primary residence. Having a smaller vacation property is a rational choice given you don't live there as long as you do your primary residence. Further, it's unlikely you need as many extra rooms for guests, an office, or entertainment […] The post The Ideal Vacation Property Size...
There are plenty of reasons people choose not to have kids, with the cost of raising them being a major one. Another big factor is the fear that children will disrupt an ideal FIRE lifestyle. Many envision a life of traveling the world, indulging in incredible cuisine, and living spontaneously—things that can feel more challenging […] The post Having Kids Might Not Hurt...
When I lived in the Marina neighborhood of San Francisco, I could walk to endless bars and restaurants within 10 minutes. It was the perfect place for twenty- and thirty-somethings to live, socialize, and indulge in city life. Back in 2005, at age 28, I had just bought my first single-family home—a handsome three-bedroom house […] The post A Home Within Walking Distance...
Recently, I went off the deep end—living like a degenerate gambler and party animal—and I wanted to reflect on it. Perhaps to nobody's surprise, I don't think having an extreme amounts of fun is good for your financial future. It's probably also not good for your health. In our personal finance world bubble, where we […] The post Partying Like A Young Degenerate...
One of the reasons I left my job at Credit Suisse was that I no longer felt I was being paid based on merit. After the global financial crisis, the firm—like many others—faced tough times, and overall compensation steadily declined for years. As a top-three ranked producer, I expected to be compensated accordingly. But I […] The post Rewarding Based on Merit Alone:...
If there’s one lesson I’ve learned the hard way in real estate, it’s that a full-on, gut-remodel can be a nightmare. After years of painful, unpredictable remodeling projects, I can confidently say: I will never do a complete remodel again. Instead, I now favor purchasing a fully remodeled, move-in ready home for any future investments. […] The post Buy A Fully Remodeled, Move-In...
On February 6, 2025, the White House announced a series of tax cuts primarily benefitting the middle class and retirees. Here’s what’s on the table: The administration is calling this the largest tax cut in history for working Americans, and with Republicans in control of Congress, these proposals are likely to move forward. Tax Cuts Means Greater Financial Freedom […] The post Tax Cuts for the Middle...
The beauty of hard work is that any able-bodied person can do it. If you put in more hours honing your craft than the average person, chances are you’ll achieve far greater success than the average person. If you happen to be rich, well-connected, and blessed with movie-star looks, combining those advantages with relentless effort […] The post Don’t Lose Financial Opportunities Due...
As a stock market investor, I’m disappointed in the new tariffs President Trump has imposed—10% on imports from China and 25% on imports from Mexico and Canada, including a 10% duty on Canadian energy imports (oil, natural gas, electricity). If these tariffs persist all year without resolution, corporate earnings could take a 2%-3% hit, which means a similar drop in […] The post Trade Wars Could Be What...
As someone who literally wrote the book on how to negotiate a severance package, I love severance case studies! The second rule of FIRE (Financial Independence Retire Early) is simple: never quit your job—always try to negotiate a severance. If you’re planning to leave anyway, why not attempt to create a win-win scenario and walk […] The post Federal Government Employees, Take The...
One adjustment I'm making to my net worth asset allocation is reducing exposure to closed-end venture capital funds while increasing allocation to open-ended venture capital funds. Closed-end venture capital funds follow a traditional model: you commit capital, fund capital calls, and rely on the general partners to make great investment choices. There are four main […] The post The Case For Open-Ended Venture...
China's DeepSeek has shaken up the AI world with the release of an open-source AI model that reportedly outperformed OpenAI's in several benchmarks. Even more startling is the company’s claim that its AI technology was developed for only $5.6 million. This figure has raised eyebrows, especially as companies like OpenAI and Anthropic have spent hundreds […] The post Deep Panic Thanks To DeepSeek’s...
Starting on January 20, 2025, Donald Trump is now the 47th President of the United States, this time with JD Vance as his Vice President. Let's dive into what this new Trump presidency could mean for your finances. The failed assassination attempt on Trump was a sobering reminder of how fragile life is, underscoring that […] The post What A Trump Presidency Means...
After over two years of writing and editing, I’m thrilled to finally share my upcoming new book with you: Millionaire Milestones: Easy Steps To Seven Figures! If you’ve enjoyed my writing on Financial Samurai over the past 16 years, you’re going to love this book out on May 6, 2025. I believe almost anyone can […] The post New Book! Millionaire Milestones: Easy...
If there's one thing I don't recommend, it's buying stock on margin. Due to the volatility of stocks and high margin interest rates, borrowing money to buy stocks is a bad idea. Conversely, I'm not opposed to buying a home on margin, namely through a mortgage, if buying follows a homebuying guideline like the 30/30/3 […] The post Bought Stock On Margin At...
In this Financial Samurai podcast episode, I speak to Ben Miller, co-founder and CEO of Fundrise about his outlook for residential commercial real estate in 2025. Despite high mortgage rates, he's taken a positive view and he shares the main reasons why. Listen to my conversation with Ben by click the play button below or go to […] The post Why Residential Commercial Real Estate...
A couple earning $500,000 a year should feel rich, right? That’s top 2% territory in America—plenty of cash to save, invest, and splurge on the finer things in life. Or so you’d think. But when I dive into the financial lives of high-income households, the reality often doesn’t match the perception. Take, for example, this […] The post From Struggling To Living Well...
Did you know that a whole life insurance policy can actually help you make money? It’s true—and it’s a strategy often used by those with higher incomes. For those seeking life insurance coverage, a term life insurance policy is typically the more affordable and simpler choice. Both Sam and I opted for matching 20-year term […] The post How To Make Money From...
With the tragic fire that occurred in Lahaina, Maui, hurricanes ripping through Florida yearly, and now the devastating Southern California fires, it's important to review your home insurance policy and understand what it does and does not cover. You also need to have contingency plans in case your house burns down. If you have not […] The post What’s In A Home Insurance...
When times are good, we must celebrate our excess investment returns because we sure as heck aren't celebrating when times are bad! When times are bad, it can feel downright terrible due to a psychological concept called loss aversion. The pain of losing $10,000 often feels far worse than the joy of gaining $10,000. Because […] The post Calculate Your Excess Investment Returns...
Artificial intelligence (AI) is causing an existential crisis for many workers, myself included. With the rise of AI, I’ve often found myself wondering: what’s the point? If AI is going to take over, why bother trying? Maybe you’ve felt the same way—worried about how to safeguard your future from AI. Or perhaps you’re a parent […] The post Safeguarding Your Future from AI:...
One of my goals for 2025 is to simplify life by selling a rental property. A key decision in this process is whether to hire a top-tier real estate agent, who charges a higher commission, or opt for a mid-tier agent to save on costs. By “top-tier real estate agent,” I’m referring to an agent […] The post Hire A Top-Tier or Average...
One of the biggest reasons I’ve been against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to pay a higher tax rate in retirement than during their working years. This belief also assumes that tax rates will stay […] The post Why You Could Make More...
If you're a FIRE parent, one of your biggest concerns might be raising a spoiled and entitled child who takes hard work and money for granted. If this happens, it may feel like a significant failure—not only for your child’s future but also for society, which would have to contend with the consequences of their […] The post Feeling Poor As A Child...
Happy New Year everyone! I hope you’re enjoying the time off and doing some reflecting. I’ve returned to San Francisco and am ready to relax some more! Now that I've shared my 2024 year in review, I wanted to share my goals and resolutions for 2025. Although 2024 was a great year, I still have […] The post 2025 Goals And Resolutions: Back...
