Become financially independent

Should I pay off my mortgage early or invest?

Today’s question comes from Lindsey. She asks:

Thank you so very much for all you share regarding financial freedom and lifestyle choices! I am avidly reading your articles, and checking into your book suggestions (some I’ve read, some are new). I’m curious if you may have any input. I’m 40 and feeling a bit financially stuck and unsure. I’ve been “frugal”, financially responsible (debt free except mortgage, brief car/educational loans) and saved my whole life, but...

KEEP READING

By Chris Reining / 13 Comments

The 5 (Very) Best Books I Read in 2018

Last year I tried something new, reading a stack of books in a single category: biographies and autobiographies.

I enjoyed this focused approach, being extremely intentional about the books you read, because you get to dedicate an entire year to studying just one thing. Pick a broad topic and acquire a broad understanding, or pick a tiny subject and go super deep.

So now I work ahead, choosing categories for upcoming years, and...

KEEP READING

By Chris Reining / 3 Comments

How much should I put into risky investments?

Today’s question comes from Tamara. She asks:

I don’t have much invested in the stock market at all. I just started messing around with an E*TRADE account this year and otherwise I just have a pension with the state of California (currently full-time state employee at $6,300/month), two rental properties (net $1,800/month and maybe $150-200k equity), a little cryptocurrency ($6k), actual gold/silver ($3k), scholarshare ($200k), no-matching 453 plan ($5k), and emergency fund ($25k). I bought...

KEEP READING

By Chris Reining / 6 Comments

The 4% Retirement Rule: Why You Can Plan But Not Predict

Apollo 13 was going to be the third time Americans had landed on the moon. But there they were, 205,000 miles from Earth, when they heard a loud bang.

“I knew right away it was not a normal circumstance,” said one astronaut.

An oxygen tank had exploded, crippling the spacecraft. Operating on limited power the crew had little heat or water and were forced to rig the carbon dioxide removal system in order to survive.

After a nail-biting six days the crew safely returned to...

KEEP READING

By Chris Reining / 7 Comments

The Market Herd Is Human Nature

A scorpion asks a frog to carry it across a river.

The frog hesitates, afraid of being stung, but the scorpion argues that if it did so, they would both drown.

Considering this, the frog agrees, but midway across the river the scorpion does indeed sting the frog, dooming them both.

While drowning, the frog cries, “But why?!”

Replies the scorpion, “It’s in my nature.”

Just like the scorpion, it’s in our nature to do what humans do. For...

KEEP READING

By Chris Reining / 7 Comments