Up Charlie Munger worked with Warren in Buffet’s grandfather’s grocery store in Omaha, Nebraska. Munger earned $2 for ten hours of labor in the 1930’s before he went off to college. He’s originally from Omaha and left to attend the University of Michigan to become a meteorologist in the army during World War II. He […]
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Roth IRAs and traditional 401K accounts are designed to enable people to save money in investment accounts by offering tax advantages. These retirement accounts were meant to replace the defined employer pension plans of the past. With a pension plan an employee received a defined payment every month from their employer based on years of
Becoming a Millionaire: Roth IRA vs 401K (What makes the most profit) Read More »
Becoming a millionaire doesn’t happen randomly or by accident, there are specific skills that enable millionaires to build their net worth. A self-made millionaire is someone who has the skills to build a stock portfolio, real estate portfolio, crypto portfolio, or business that’s worth seven figures. This type of success doesn’t happen by accident and
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There are many levels of personal finance with the lowest levels being broke, being deeply in debt, and bankrupt. Being bankrupt means you can no longer pay your debts and must seek the courts protection and settle with your debt collectors. Being deeply in debt means that all your earnings go to debt payments each
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There are rules for making money, losing money, holding on to money, and growing money. There are principles for practicing medicine or law and a framework of rules for success, the same applies to finance. There are strategies for winning at sports or in business and there are also ways to win at money. Here
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In the FIRE movement (Financial Independence, Retire Early) there are 10 levels generally considered the journey from financial dependence to financial abundance. It can help psychologically to look at achieving financial independence as steps to new levels, one at a time. It is easier to focus on the next level than to see how far
10 Levels of Financial Independence And Early Retirement (How to Retire Early) Read More »
Steve Cohen is arguably the most profitable hedge fund trader ever. His SAC Capital returned 30% annually for more than 20 years since its inception in 1992 making Cohen a billionaire. What many people don’t know is that Cohen started his career as a day trader. [1] How good is he? Showtime’s Billions is inspired by
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How much you need to have saved by age should be based on your own goals. The most common filter used for projecting how much you need to save is based on retirement, having enough money to draw from after you quit working a job. Historically this has been saving ten times your annual income
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Selling short a stock reverses the normal order of buying it and then selling it. Selling short means to sell something you don’t own. When hedge funds and large players sell a stock short they borrow the stock from their broker and sell it to a buyer in the marker. They then owe the broker
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When University of Chicago professor Harold Pollack was interviewing Helaine Olen he said that “The financial advice most people actually need is common sense and simple enough that it would fit onto a 4-by-6 index card.” “I started getting emails saying, ‘Where’s the index card?’” Pollack explains. So even though it had more of a
All the Financial Advice You’ll Ever Need Fits on a Single Index Card Read More »
People that are financially successful tend to all use a budget to manage their monthly bills. Even the ones that don’t use a budget have the self discipline to control their spending within the parameters of what their income allows. A budget spends all of your monthly household income on paper before the month begins.
How To Manage Your Money (50/30/20 Rule) Read More »
Money doesn’t bring happiness in itself, it’s the time, freedom, and experiences money buys that brings happiness. Money can’t solve all your problems but it can solve all your money problems. Money doesn’t change you, it just amplifies who you already are. If you are greedy you will just be more greedy, if you are
Simple Steps to Financial Freedom Read More »
New option traders can make many mistakes when they first start trading options. Here is a quick list on what to do and what not to do as you come into the options market for the first time. Are Options Good for Beginners? “Fish see the bait, but not the hook; men see the profit,
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Warren Buffett had an interest in being rich from an early age. He said he read all the books about finance from the Omaha public library by the age of ten years old, and some twice. He tried many small business ventures as a kid selling chewing gum, collecting glass Coca-Cola bottles to return for
This Is How Warren Buffett REALLY Made 95 Billion Dollars Read More »
Net worth is calculated by the total value of every asset that an individual owns subtracted by all their liabilities. Net worth can vary greatly over someone’s lifetime based on where they are in their financial journey. College graduates can even start out with a negative net worth as they have a degree but no
Average Net Worth By Age (Not What You Think) Read More »
There are fourteen primary levels of wealth that are each distinct in their experience both mentally and financially. Most people can look at this list and identify where they are in their financial journey rather quickly. Two keys to personal finance is to number one identify where you are, and number two set goals for
Levels of Wealth Explained Read More »
With options trading, brokers quantify different levels of risk exposure for different types of option plays and traders must be approved for each level. The level is based on the risk that the broker is exposed to with potential open ended unhedged short options. The option trader must have a correspondent hedge to limit the
Option Trading in 4 Levels of Complexity Explained Read More »
In finance there is both bad debt and good debt. Bad debt is owing money on depreciating assets that have fixed payments and go down in value. Good debt is owning an asset by using debt that goes up in value and/or creates positive cash flow above the debt payment and expenses. All debt comes
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Just like Stephen Covey found the effective habits of successful people through his studies I have found the common habits of successful traders through research. Many similarities for what creates success in any field. Let me breakdown the seven habits common in most successful traders. 1. Use A Positive Expectancy Model What is Positive Expectancy?
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Options are a market of derivatives that gives traders the right to buy or sell shares of stock over a set time period at a specific strike price for the cost of the contract. The options market is a zero sum game where there is a seller and buyer for every contract until it is
Options Trading for Beginners (The ULTIMATE In-Depth Guide) Read More »