How I Retired Early – At 38

I wasn’t trying to follow any hard and fast rules, but now that I think about it, I practiced the following early retirement rule:

If one wants to retire early, one should also plan early.

This may seem conventional and common-sense, and it is. Still, very few people do it. I know this because there are not many retirees close to my age.

So, what did I do to retire early? Continue reading

Go Beyond Regurgitating Quotes And Other Thoughts From Omaha

“Invest with a margin of safety.”

“Be greedy when others are fearful.”

“Buy something for less than it’s worth.”

“Have an exit strategy.”

We all hear many quotes form smart men and great investors. I have one more quote for you: “If I had a dime every time I heard someone quote Warren Buffett, I’d be able to buy a few Class A Berkshire shares.”

Tomorrow, at the Berkshire shareholders meeting, I will no doubt hear more of these or similar maxims. However, I wonder if there are any investors out there trying to buy an unsafe investment. Or trying to be a lemming following a crowd off a cliff. Or overpay for things, or neglect any sort of planning.

Here’s an idea:  Continue reading

Portfolio Management For Retirees: Frothy Market

The market has recovered from the recent correction and again is near its all-time high. Although not impossible, it is becoming more and more difficult to find bargain securities. For retirees living off dividends, this is a twofold problem.

Firstly and obviously, there is a risk of a portfolio value decrease should a correction or even a bear market occur. To a retiree who is simply cashing dividend checks, this may not matter, so long as companies do not cancel or cut their dividends. Yet if a large sum of money becomes necessary, such as for a major purchase or an unforeseen medical or legal expense, the overall portfolio value may become important since a retiree may have to sell some stock to finance such an expense.

Secondly, frothy market limits reinvestment of any unspent dividend (or any other) income. Buying overvalued or even fully valued securities is not the best use of capital.

Fortunately, there are several things a retiree can do to better position the portfolio during a high-flying market…

Read more on Seeking Alpha.

Get paid for doing nothing with dividend stocks

I have a job. It’s the best job in the world – I never show up to work, I never lift a finger and never endure an uncomfortable conversation with the boss. However, I still collect a nice regular paycheck. This job is so easy, I can have a dozen or two of them, and get paid by as many different companies. Most of them will give me a raise every year. It’s a great job, and you, too, can get it any time you like.

You don’t need a resume for this job, and everyone without exception can be hired. These jobs are everywhere, and I should have joined this workforce much sooner than I did.

I am talking about the job of a Continue reading

4 things to do before you start investing

This article was updated due to the change in my perception of the likelihood of occurrence of various unpleasant events.

You have to be in the right financial situation before you begin investing. Don’t worry, it’s not difficult – there are only a few things to do but they require some discipline and a bit of time.

  1. Put together an emergency cash fund. Unforeseen life events that require rapid expenditures of large amounts of cash may happen at any time. A sudden illness, an unexpected legal matter, loss of employment or an economic downturn, a divorce, a natural disaster, a property crime – these things happen and nobody is immune. Therefore, I think that everybody needs an emergency cash fund to cover these unforeseen expenses. 3 months of expenses is the bare minimum, 6 months is good and 9-12 months is excellent. 6 months worth of expenses in the bare minimum, 12 months is good and 18-24 months is excellent. To figure your average monthly expenses, just Continue reading

4 steps to get started in the stock market

So, you know nothing about the stock market. Also, you are short on time and want to get started quickly. Here is how to do it in 4 simple steps.

  1. Read F Wall Street. This is a novice-friendly, yet informative introduction to stock investing. Explanations are very clear and the philosophy follows that of the best investment thinkers. A must-read if you are starting out.
  2. Research up some stocks for free on Value Line Free Dow 30. On all 30 components of the Dow Jones Industrial Average, Value Line gives you financial data going back more than 10 years, Safety Rank, Timeliness Rank, Profile Report (A brief historic summary of a company) and an analyst’s opinion. A great place to start your research.
  3. Pick a few stocks, put them on your watch list, follow them and see how they do. Once comfortable with your stock picking, buy a few shares of several stocks you like. When you have skin in the game, you pay much more attention to your investments.
  4. Analyze your results. Was your research solid? Were you right or wrong? Where were you right or wrong? Why?

2 Rapid Dividend Growers In The Canadian Energy Space

The Athabasca oil sands are enormous deposits of bitumen or extremely heavy crude oil located in northeastern Alberta, Canada. These oil sands consist of a mixture of crude bitumen (a semi-solid form of crude oil), silica sand, clay minerals and water. The Athabasca deposit is the largest known reservoir of crude bitumen in the world. Together, these oil sand deposits contain about 1.7 trillion barrels (270×109 m3) of bitumen in place, comparable in magnitude to the world’s total proven reserves of conventional petroleum.

With modern unconventional oil production technology…

Read more on Seeking Alpha.