Earlier this year, my beloved Lexus was totaled! I had the car for 14 years and I was hoping it would last me at least another 10. I was stopped at a light when a distracted driver in a large SUV rear-ended me. How did I know he was distracted? That’s an educated guess considering everybody else was stopped at the red light yet he somehow thought that he could keep driving. Thankfully, I didn’t suffer any permanent injuries. Hopefully you’ll never experience this. But if you’re ever in this unfortunate situation, here are some tips on how to deal with a car accident and what to do when your car is totaled.
In the past, I’ve talked about how cars are depreciating assets. From a financial standpoint, it’s better to buy used so somebody else can take the largest depreciation hit up front. Since the value only goes down, it’s also better to minimize how much you spend on a car. So why did I spend $50k on a brand new Audi S3? I can explain.
Having been married for many years now, I’ve become quite an expert at buying diamonds. Not by choice, mind you. But when you screw up as often as I do and you have a bad back, you have to do something (anything) to get off of sleeping on the couch. Given my experience, here’s my diamond buying guide on a budget. Continue reading “Diamond Buying Guide on a Budget”
It’s that time of year again! Pumpkin spice, snow, and if you’re lucky, eggnog. Preferably eggnog spiked with a lot of alcohol. Know what else it’s time for? Protecting your P&L!
It’s been a while since I took the CFA exams. You’d be surprised how many stone tablets the curriculum was written on back then. And it was so noisy, with everybody working as fast as they could with their abacuses. Okay, so it wasn’t that long ago. But it was longer than I’d like to admit. Thankfully, I passed all three levels on my first try. Here are my tips so you can too!
Before we being, I want to point out how much I love driving. I love my car too. It’s fun being in control and flooring it (within the speed limit of course) every once in a while. So I’m not advocating getting rid of your car to save money. Besides, I live in Texas. So it’s not like it’s even feasible for me to live without a car. But it’s still an interesting exercise to see how what’s the total cost of ownership for my car.
“What am I missing?” These are the four most important words in the world of investing. If you want to invest like a professional, this is what you always need to ask yourself. Unlike, “This time it’s different”. If you hear an investor say this to you, run away! Don’t look back and run away as fast as you can, preferably in a zig zag pattern so he doesn’t get you!
As an institutional investor, I focus solely on the numbers. My valuation is based on a set of verified assumptions. I look at where something trades vs. historicals, and my upside/downside is based on probabilities. I’m just kidding. It’s true, I look at all those things, but sometimes you just need to go with your gut. When you meet with a management team and they sound confident, sometimes you just need to buy the stock because you think they’ll deliver. Hate selling is the opposite that.
You’ve heard it a million times before. If you want to save money, bring lunch from home. Make your own coffee. Cancel your cable bill. Don’t have a life and don’t have fun. Yes, these are all very good suggestions on how to save money, but you’re giving up convenience in return. So how would you feel about saving $150 every year, without any inconvenience other than spending 5 minutes a month? Let me ask you, how often do you check your tire pressure?
Including dividends, the S&P 500 has more than tripled from the lows in 2009. Last year, the S&P 500 was up 12%, and this year’s it’s up 16% YTD. with such strong performance, everybody should be happy, right? Well, not exactly. If you’re long the market, like most retail investors, this has been great. It’s basically been impossible to lose money in the past eight years because stock valuations keep on going up. Like you would have to really, really, try hard to lose money. Like invest in known fraudulent companies. Or companies that have told you they’re going into bankruptcy.