Here are my posts for this week:
When Genius Failed
Here are some short takes and some weekend reading:
Jason Zweig give a clear explanation of why fund managers tend to make their portfolios match the index fairly closely even if their investors would prefer bolder moves.
Potato reviews several rent vs. buy calculators. He takes a much deeper look than writers of most such review posts and actually explains what’s wrong with some of them.
Tim Stobbs explains his approach to early retirement in an interesting interview. His approach sounds very sensible. The one thing that concerns me in declaring my own financial independence is the possibility that when my health eventually declines somewhat, my expenses will rise. I might need to pay someone to mow my lawn, shovel snow, or clean eavestroughs. I may have more direct expenses such as physiotherapy. For this reason, I think early retirement enthusiasts should add a buffer to their current spending to account for possibly needing to spend a little more in their 60s than they do in their 40s. There will obviously be increased spending due to inflation, but I’m talking about more spending in real terms (after accounting for inflation). The dream of early retirement can still be very real, but it might be sensible to delay it by a year or two to create a buffer.
My Own Advisor lists some Canadian dividend stocks to buy and mostly forget. While I don’t believe any investor with a concentrated portfolio can afford to just forget about a stock, it can be okay to not pay much attention if you’re sufficiently diversified.
Big Cajun Man complains that he thought public education was free. Back to school costs prove otherwise.
Million Dollar Journey has begun net worth updates for Sean Cooper. Sean’s frugality and drive for income should put most readers to shame.