The End is Everything

Why Timing of Investment Returns Matters and What To Do About It Photo: Pexels I have previously written about how luck can influence your investment results, and this post will continue that discussion, but with some additional complexity. Not only does luck matter, but, in particular, your returns right before and in the first years of…

Risk and Reward in a New Era

How Investing Has Changed and Why Future Returns Will Likely Be Lower Photo: Pixabay This week I want to talk about how much the investing world has changed over the last century and how these changes may reduce your future expected returns. My argument is that because it is now easier, cheaper, and less risky for…

The Unknown Unknowns of Investing

When Diversification Fails and How to Prepare for the Next Crisis Photo: Wikimedia Commons There is a great line by Donald Rumsfeld about the knowledge of knowledge(paraphrasing, emphasis mine): There are known knowns; things we know we know. There are known unknowns; things we know we do not know. But there are also unknown unknowns — things we…

Bad Investment Results? Your Birth Year May Be to Blame

How Luck Influences Investment Success and What to Do About It Photo: Pixabay You likely do not remember it, but the year you were born had a larger impact on your future investment success than you can imagine. Why? Because the investment industry has a secret: Luck matters a lot more than you think And I am…

Following Your Passion is a Numbers Game

On Luck and Success in the Creative Industry Photo: Wikimedia Commons Having a creative career is like dynamite. The only thing you need to do is ignore how long the fuse is. This post is for all the people who want to make a name for themselves through writing, acting, music, art, or some other creative endeavor…

The Early Bird Gets the Return

The Real Reason Why Investing Early is Important Photo: Pixabay You have probably heard the phrase before: Start saving early. The logic goes that the earlier you start saving and investing, the more time you will have to compound your money, and the more successful you will be as an investor. I agree with this…

Fantastic Lies and How to Find Them

Detecting Fraud Using the Mathematics Behind Benford’s Law Photo: Pixabay This week’s post isn’t about personal finance, but I think you will find it intriguing. I am going to illustrate how it is possible to detect fraud in certain kinds of data using some simple math. But, before we dive into that, let’s play a…

Just Keep Buying

One Simple Trick to Make Yourself Rich Say it with me: Just. Keep. Buying. This is the investing mantra that can change your life. These 3 words can make you rich. What I am talking about is the continual purchase of a diverse set of income producing assets. I am not talking about when to buy…

Saving is For the Poor, Investing is For the Rich

The Difference Between Saving vs Investing Over Your Life Cycle Now that my blog has gotten some traction among my friends, I have been getting questions like this more often: “Nick, I just saved up $1,000 and I want to know where I should invest it to get the best return.” Immediately I think about…

The Eye of The Storm

Living Through The Worst of the U.S. Housing Crisis Moreno Valley, CA (Photo: Wikimedia Commons) This week I want to talk about the U.S. housing crisis of 2007–2008. In particular, I want to tell you what it was like living in an area that experienced arguably the worst housing boom and bust in the United States….