The Financial Samurai Podcast

Before I show you the 20-year annualized returns by asset class between 1999 – 2018, I want you to guess the following four things: 1) Of the following asset classes, the S&P 500, a 60/40 stock/bond portfolio, Bonds, a 40/60 stock/bond portfolio, REITs, Gold, Oil, EAFE (Europe, Asia, Far East), national real estate, which performed Read More... The post Annualized Returns By Asset Class From 1999 – 2018 appeared first on Financial Samurai.

A good investor always looks for opportunity no matter the circumstance. If you can identify and invest in a winning long-term trend, your returns could be quite lucrative over time. Some long-term trends that have or will likely make investors a lot of money are: Investing in the next Silicon Valley Investing in the aging Read More... The post A Legal Way To Profit From The College Admissions Scandal appeared first on Financial Samurai.

There’s a ton of talk about how there’s a housing affordability crisis in various parts of the country. Perhaps the fear of forever being priced out is an underestimated motivating force behind the continued demand for housing despite high prices. I remember when I bought my first 2/2 condo in 2003, I felt a sense Read More... The post The Return On Rent Is Always Negative 100%: Here’s How To Live For Free appeared first on Financial Samurai.

I realized something quite surprising the other day. Ever since my son was born, I’ve felt increased financial pressure to provide. It didn’t matter how much I had in the bank or how much our net worth had grown since the financial crisis, the pressure to earn more money was a constant. It makes me Read More... The post How To Get Your Spouse To Go Back To Work After Having A Baby appeared first on Financial Samurai.

On March 11, 2019, Federal Reserve Chair Jerome Powell indicated there will be no further rate hikes in 2019, even though he suggested that two were likely this year as recently as December 2018. On the one hand, his backpedaling is welcome news for risk assets. Stocks have performed well year to date and real Read More... The post Refinance Your Mortgage Now As The Yield Curve Inverts appeared first on Financial Samurai.

For 10 years I acted as a mentor to incoming analysts or associates at one of the two investment banks I worked for. Being a mentor was rewarding and a way to help younger folks navigate the often terrifying waters of a cutthroat work environment. One of the main pieces of advice I gave was Read More... The post Increase The Value Of Your Professional Network By Befriending These Five Archetypes appeared first on Financial Samurai.

This post is for someone who is wondering: Whether they have the proper asset allocation How to reduce investment stress while still benefitting from returns How to quantify their risk tolerance How to continue moving forward on their path to financial freedom despite all the uncertainty One of my primary goals on Financial Samurai is Read More... The post Financial SEER: A Way To Quantify Risk Tolerance And Determine Appropriate Equity Exposure appeared first on Financial Samurai.

Although 2018 ended on a down note with the stock market selling off, I feel good about how things unfolded. I’ll take the ratio of three good quarters to one bad quarter any year. Believe it or not, my theme for 2018 was: back to early retirement life. I pushed myself to the point of Read More... The post Financial Samurai 2018 Year In Review: Almost A Fantastic Year appeared first on Financial Samurai.

With a recession looming, the FIRE movement is going to get extinguished. In its place will rise the DIRE Movement: Delay, Inherit, Retire, Expire! This episode appeared in 4Q18 and is something to consider the next time we go through a downturn. Today, we are at peak FIRE. Unfortunately, when you’re at the peak, there’s usually nowhere to go but down. My crystal ball is saying the FIRE movement is in for a rude awakening. Read more and view charts here: Move Over FIRE, Welcome DIRE

When I first started writing about achieving  financial independence early in 2009, I never thought the FIRE movement would reach such a huge level of interest a decade later. After all, only misfits decide to aggressively forgo material pleasures, save 50% or more of their incomes, and retire from well-paying jobs in their 30s and Read More... The post Move Over FIRE, Welcome DIRE: Delay, Inherit, Retire, Expire appeared first on Financial Samurai.

There’s a lot of uncertainty as we head into 2019. The Fed is expected to raise rates another two to four times. We’ve got a slowing housing market thanks to rising rates, rising inventory, and lower overall affordability. We also have constant geopolitical risk that never seems to go away. As investors, we must properly Read More... The post 2019 S&P 500 Price Targets By Wall Street Strategists Are Mostly Bullish appeared first on Financial Samurai.

Liquidity is overrated. Once you have about six months worth of living expenses saved, there’s really no need to hoard even more cash since you have insurance. If you do accumulate more cash, that’s called “cash drag” because cash returns have underperformed assets such as stocks, bonds, and real estate since the beginning of our Read More... The post Patient Capital: The Key To Long-Term Wealth Creation appeared first on Financial Samurai.

As I was reviewing the performance of my once healthy investment portfolio, I found a couple standouts: Omega Healthcare Investors (OHI) and Realty Income Corporation (O). I knew they were performing well, but I didn’t realize how dramatically these two publicly traded REITs have been performing compared to the S&P 500 index until now. OHI Read More... The post How Rising Interest Rates Affect REIT Price Performance: Not As Bad As You Think appeared first on Financial Samurai.

There are some people who think that only people with high incomes can achieve financial independence before the age of 65. They’ll go on and on about how it’s not fair that other people are able to escape the rat race early, while they’ve got to grind on because they’re earning less than six figures Read More... The post Achieving Financial Independence On A Modest Income: $40,000 In Manhattan appeared first on Financial Samurai.

The old three-legged stool for retirement consisted of: 1) Pension (Company) 2) Social Security (Government) 3) Personal Savings (You) Given less than 15% of Americans have pensions or will receive pensions, no longer is having a pension part of most Americans retirement plan. Therefore, we can throw pensions out the window for future generations. For Read More... The post The New Three-Legged Retirement Stool: You, You, And You appeared first on Financial Samurai.