What is the case for investing in high-quality fixed income? With interest rates at historic lows, many investors are shunning low-yielding United States Treasuries. Is this the right investment move? It depends. The case for holding bonds is a function of your viewpoint of a bond’s role in your investment portfolio. So, why do we […]
The Blog
Is My California Rental Property Good for Retirement Income?
Here’s Nabeel’s question about his California rental property: I need some advice on my real estate investment. I have a rental property in a Los Angeles suburb with the following information: Metric$ / DateOriginal Loan Amount$249,000Current Principal Balance$214,363Interest Rate4.25%Loan Origination Date12/20/2017Maturity Date01/20/2033Gross Rent, Monthly~$1,920Property Management, Monthly~$120Property Value$473,000The number’s on Nabeel’s California rental property. My monthly […]
The Cowboy Account
It always good to catch up with old friends. Recently, I got a friend on the phone that I hadn’t spoken to in a while. He had reached out because he had a question about investing. He was considering leveraging his investment portfolio. He sent me the data for his proposition. What did I think […]
Should I Invest in Alternative/Direct Lending (LENDX)?
Having read of two of Larry Swedroe and Kevin Grogan’s books in a row, I have twice been presented with the same argument for using the Stone Ridge Alternative Lending Risk Premium Fund (LENDX). (Swedroe argues for it online, as well.) This is an alternative (direct) lending fund, where investments are made in consumer loans, […]
Direct Real Estate for Cash Flow in Retirement
In a previous post, I discussed how stock market investing was superior to California real estate investing. This conclusion was based on the investment returns available with each strategy; in a flat out annualized returns vs. annualized returns comparison, the stock market outperformed. (Even in a successive analysis that considered leverage, stock market investing was […]
#COVIDlife is the New Value Investing
I’m surprised at our country’s current state of the coronavirus pandemic. We – as Americans – are obviously doing something very wrong: we’re not wearing masks; we’re not social distancing. Yet those two things are very impactful in slowing the spread of the coronavirus: using masks in public; staying six feet away from others. The […]