Category: Finance

Lately, I’ve been thinking more about estate planning. Part of it is just getting older. Part of it is having young children I want to protect no matter what. And part of it is watching the unsettling rise in political violence, which…

What if one of the best ways to get wealthy is to trick yourself into thinking you’re broke? It sounds counterintuitive, even ridiculous. But after decades of saving, investing, and observing how people behave around money, I’ve realized one thing: abundance often…

If you’re thinking about investing in venture capital or any private fund, you need to understand these five key terms: MOIC, TVPI, DPI, Loss Ratio, and IRR. Without them, it’s like walking into a poker game without knowing the rules. And in…

If you want to FIRE, one of my regrets was pulling the ripcord too early at age 34 in 2012. Even though I started writing about FIRE in 2009 with the launch of Financial Samurai—trying to uncover as many blind spots as…

During a bull market, most investors get excited about chasing risk. Despite sky-high valuations, there’s a tendency to double down on even riskier bets in the hopes of making outsized gains. That’s human nature. Nobody wants to miss the boat, and everyone…

The older I get, the more I dislike being a landlord. There’s too much potential for disappointment, misunderstanding, or outright unpleasant moments. When you’re dealing with people and one of your most valuable assets, the margin for frustration is high. If you…

I haven’t checked my net worth for four months until recently. That wasn’t on purpose, because normally, since 2012, I check at least three times a week using Empower’s free app. The only reason I stopped was because I could no longer…

Embattled Federal Reserve Governor Lisa Cook is facing accusations of mortgage fraud—specifically, owner-occupancy mortgage fraud. The claim is that she took out two mortgages in two states, within two weeks, while designating both properties as her “primary residence.” If true, it’s a…

I recently had a zero-coupon Treasury Bill redeem in the amount of $102,000. This money is part of the 35% of my taxable brokerage portfolio that’s in bonds. Somewhere between a 60/40 and 70/30 equity/bond split is what I like to maintain…

If you decide to forsake making maximum money to become a FIRE parent or stay-at-home parent, then you had best spend more time with your kids. Otherwise, you might as well go back to the office and grind under fluorescent lights for…

If my recent posts on the mistake of chasing value stocks or the need to invest big money to make life-changing money don’t resonate, you may want to consider hiring a financial professional to manage your portfolio. Offloading the burden of investing…

Back in 2012, I thought I had finally conquered financial FOMO after walking away from my well-paying finance job. But after having children, I’ve noticed more and more relapses. That creeping desire to make more money and the struggle to feel satisfied…

In my post, “How You’ll Feel Achieving Various Millionaire Milestones,” a commenter named Joseph shared these thoughts: “I’m fascinated by someone worth $10M or $20M not feeling wealthy. Are they hanging out with nothing but billionaires? The only other explanation is a scarcity mindset.…

Since writing about FIRE in 2009, I’ve favored investing in growth stocks over value stocks. As someone who wanted to retire early from finance, my goal was to build as large a capital base as quickly as possible. Once I retired, I…

This type of post only surfaces during a bull market, when greed tug at us the hardest, making satisfaction elusive. Ever since making my first public equity investment in 1996, I’ve been hooked, wrestling with the constant mental tug-of-war over how to…

On the latest episode of the Financial Samurai podcast, I sat down with Ben Miller, cofounder and CEO of Fundrise, for a deep dive into artificial intelligence, venture capital, and what it really takes to get into the best private company deals. Ben was…

After a week of reviewing the tax-free exclusion rule for selling a rental property, I decided not to sell. I’d already used my $500,000 tax-free exclusion amount and would need to wait at least two more years before I could potentially use…

When I worked in Equities at Goldman Sachs and Credit Suisse, we would occasionally bring a hot IPO deal to market. During the company roadshow, we’d take management around to meet one on one with our largest investors and clients. Sometimes the…

In Spring 2025, I sold one of my properties and successfully excluded $500,000 in capital gains, tax-free, thanks to the IRS Section 121 Exclusion. For those unfamiliar, this powerful rule allows homeowners to exclude up to $250,000 in capital gains if single,…

Since starting Financial Samurai in 2009, I’ve encouraged folks to keep an open mind and embrace as many different perspectives as possible. So often, we get set in our ways and think our approach is the only right way to do things.…

As soon as both my children were born in 2017 and 2019, I superfunded their 529 plans equal to the five-year gift tax exemption. At the time, I was thrilled to do it given a parent’s number one responsibility is to provide…

When I lived overseas, one of the most celebrated aspects of my international schools was cultural diversity. At the International School of Kuala Lumpur, Taipei American School, and Canadian Academy in Japan, I had classmates from all over the world. With such…

After remodeling a fixer I bought in 2019 between 2019–2022, I swore I would never take on another remodeling project again. I hate remodeling with a passion, even though I’m always satisfied after the project is done. The delays, cost overruns, and…

One of the main reasons I refused to spend a small fortune renting a vacation property in Honolulu was because I wanted to stay in my childhood home. The home was built in 1986, when I was nine years old, and I’ve…

How much money do you need to feel financially comfortable or wealthy? The answer depends on where you live, your household size, and your lifestyle desires, of course. However, according to the 2025 Charles Schwab Wealth Survey, Americans say it now takes a…

I love index funds and ETFs for their low-cost nature and simplicity of ownership. However, if you want to build generational wealth before traditional retirement age, consider looking beyond just index funds and index ETFs. Since starting Financial Samurai in 2009, I’ve…

Imagine spending your life building wealth, investing in real estate, stocks, or your business, with the hope of leaving a legacy for your children. Then one day, you find yourself wondering: Will the government take a massive chunk of it anyway? If your…

The value of owning a big, beautiful home is underappreciated. Somewhere along the way, society began favoring minimalism and smaller living spaces, often dismissing larger homes as “McMansions.” But after spending five weeks living in a much smaller space again, I’ve gained…

One of the things that gives me great comfort about the health of the U.S. economy is our historically low household leverage. According to the Federal Reserve Board, household leverage is now at an 80-year low—a remarkable sign of financial discipline. So let me be…

A typical supercommuter spends 90 minutes or more one way commuting to work or school. As the cost of living continues to outpace wage growth, supercommuting is growing in popularity. According to a recent U.S. Census Bureau report, an estimated 5 million people are…

On July 3, the House narrowly passed the One Big Beautiful Bill Act (OBBBA) with a 218–214 vote. According to the nonpartisan Congressional Budget Office (CBO), the bill will add an estimated $3.3 trillion to the budget deficit over the next 10 years. Trump signed the…

If you became a newly minted millionaire, where would you migrate to? Due to inertia, I bet most of you would stay right where you are. A lot of us are afraid of change, which is why we stay at jobs we…

Ever since I left my day job in 2012, I’ve used a form of the dumbbell investing strategy to grow my wealth while protecting against large losses. It’s a framework that’s helped me stay invested during uncertain times—especially when I felt the urge…

We’re staying with our parents for five weeks in Honolulu, and I wanted to share a little revelation I’ve learned about making a home guest-ready. If you dream of owning a home where friends and family regularly visit—because you genuinely enjoy their…

About a year ago, a relative asked me to help manage her money. She had been paying a ~1% asset management fee with Goldman Sachs Asset Management (GSAM), even though she wasn’t their typical high-net-worth client. The account had been set up…

About a year ago, a relative asked me to help manage her money. She had been paying a ~1% asset management fee with Goldman Sachs Asset Management (GSAM), even though she wasn’t their typical high-net-worth client. The account had been set up…

I’m convinced that if you wake up just one hour earlier every day for the next 10 years, you’ll not only accomplish far more, but also build significant wealth and unlock countless opportunities in life. Conquering the magic of the morning—while most…

When the U.S. bombed three locations in Iran, my initial reaction was a mix of hope and sadness. Hope—because I wished it might lead to a reduction in weapons of mass destruction. Sadness—because of the likely loss of innocent civilian lives and…

If you want to grow your wealth faster than the average person, I suggest trying to think in two timelines that move together in unison. The first timeline is analyzing what’s going on right now. The second timeline is analyzing what could…

When I first started Financial Samurai back in 2009, I had idealistic dreams of helping as many people as possible achieve financial freedom. My finances were crumbling during the global financial crisis, and I wanted to break free from the corporate grind.…

One of the most overlooked risks in real estate investing isn’t rising interest rates, leverage, or even tenant issues—it’s execution fear. You run the numbers. The property checks all the boxes. It fits your timeline and lifestyle. You can even picture the steady…

When my son was born in 2017, I decided to focus on being a stay-at-home dad (SAHD). Every early childhood development book I read emphasized that the first five years are the most critical for a child’s growth. So I figured, why…

In late 2022, my wife and I were finally able to lock in matching 20-year term life insurance policies at an affordable rate through Policygenius. For five years prior, I had been concerned that I wouldn’t be able to get approved at…

I recently received a question that boils down to this: How do you know when you have enough money? And once you do, when is it time to shift from chasing excess returns to simply maintaining what you have? There are several…

Feeling burned out and underappreciated? Tired of managing people and just want to focus on your craft? Thinking about going back to school to do something more meaningful? If any of this resonates, don’t quit your job. Instead, it might be time…

I’ve been focused on building passive income since 1999, back when I had to be in the office by 5:30 a.m. and worked past 7 p.m. often. Weekends were another eight hours or so. I knew I couldn’t sustain a traditional 40-year…

Have you heard of the no-spend chalenge? It’s a popular concept among budget-minded and minimalist bloggers who encourage us to save more and declutter our lives. The idea is simple: stop spending on non-essentials for a set period and see how much…

If you are a parent, your mission is clear: develop into a rich Bank of Mom & Dad to save your children. If you don’t have wealthy parents yourself, then unfortunately, life might stay on hard mode forever. It’s up to you…

There is more wealth out there than you think. But the government and media sometimes likes to trick us into believing there is not. Government data says the median net worth in America is around $200,000. Meanwhile, the media keeps highlighting financial…

After publishing Why We Keep Spending Even Though We Know We Shouldn’t, I realized something important: the real reason I wasn’t willing to spend on a vacation rental this summer is because we no longer have financial freedom. I didn’t think about this…

Spending money is an American pastime. With a national saving rate hovering around 5%, it’s clear we collectively love to spend. And honestly, being able to enjoy our wealth is a beautiful thing. It’s something more personal finance enthusiasts like me—and readers…

When you decide to sell a house, you might encounter a preemptive offer—a bid that arrives before you list publicly on the open market or reach your set offer due date. This scenario often unfolds in a robust market or when your…

About once a month, I get an email or comment from a reader criticizing adjustable-rate mortgages (ARMs) as a poor financial choice. Since I’ve been a proponent of ARMs since starting Financial Samurai in 2009, I understand the pushback. Roughly 95% of…

Believing you deserve to be rich is one of the most powerful psychological tricks to boost your wealth. With trillions of dollars circulating in the world, you have to ask yourself: Why not me too? Think about the knuckleheads you grew up…

I’m bullish on real estate. Yet I recently sold another rental property. This type of incongruence between thought and action can feel unsettling and even counterproductive to wealth creation. But it doesn’t have to be. Because while maximizing returns is a big…

During the recent stock market correction, I decided to buy the dip. But this time, I didn’t just buy my usual dip-buying amount of $25,000 to $100,000. I went much bigger. All told, I spent over $1 million buying the S&P 500…

Before I retired from finance in 2012, I struggled with chronic back pain, sciatica, and TMJ. The stress was so overwhelming, I even paid a dentist $700 to drill divots into several teeth just so I could close my jaw more easily.…

To celebrate the launch of Millionaire Milestones: Simple Steps To Seven Figures, I want to share how you might feel and what you might do as you hit various levels of wealth. Perhaps by sharing, I’ll motivate you to take greater action. We’ll…

After three years of writing, rewriting, and refining, I’m thrilled to officially celebrate the launch of Millionaire Milestones: Simple Steps To Seven Figures! This book has been a true labor of love, not just for me, but for my family as well.…

There comes a moment when your child might look up and say, with wide-eyed innocence: “I want to go to the office and type on a laptop all day like Mommy.” “I want to travel abroad for work for two weeks at…

If we’re not already in a recession, we may soon enter one due to aggressive trade policies that are fueling tremendous uncertainty. As companies and consumers pull back on spending, millions of jobs could be lost, trillions in stock market wealth may…

If you’re a personal finance enthusiast with kids, you’ve probably wondered: at what household income level will colleges stop offering scholarships and grants (i.e., free money) to help your child attend? What is that income cutoff? Given that the cost of college…

Nobody enjoys a stock market downturn, especially those who rely more on returns without active income. But as parents, we can use these sell-offs as an opportunity to help turn our kids into future millionaires. Although I’m a perennial optimist, I believe…

In 1997, Gary Winnick founded Global Crossing, a company with the bold vision of laying undersea fiber-optic cables to build a global IP-based telecommunications network. It was a massive infrastructure play, designed to form the core transport layer for the internet, connecting…

To celebrate the launch of my new book, Millionaire Milestones: Simple Steps To Seven Figures, on May 6, 2025, I thought it’d be fun to explore various millionaire topics leading up to the release. For most millionaires, owning the nicest house they…

When it comes to saving for retirement, knowing which account to fund first is like knowing which steps to take when climbing a mountain. You want to reach the summit with enough oxygen (money) and energy (tax efficiency) to enjoy the view.…

Only when the stock market goes down do people start to wonder whether they have too much exposure to stocks (equities). Questions arise: Should I cut back? Should I buy the dip? What’s the appropriate allocation to stocks right now? While the answer…

When it comes to selling a home, first impressions are everything. Yet, many sellers make the mistake of thinking buyers can look past an empty room, outdated furniture, or a poorly lit space. The reality? Most buyers have little imagination. They struggle…

The first year after purchasing a house is the most dangerous and potentially challenging period. This is particularly true for first-time homebuyers who likely stretched their finances to achieve a 10 percent or greater down payment, leaving their liquidity quite thin. Once…

With a likely recession and potentially stagflation on the horizon, I suspect many more families will join us as DUPs: Dual Unemployed Parents. Mass layoffs and company shutdowns will ripple through the economy. According to USA Facts, there were approximately 38 million…

Creating an investment game plan is a crucial part of building lasting wealth. Without one, you’re likely to accumulate far less over your lifetime. Now that the S&P 500 briefly corrected by 20% in 2025, we’ve officially entered another bear market. Historically,…

As stocks plummet and recession fears grow, there’s one silver lining worth highlighting: the increasing value of your home, if you own one. A home is a fundamental necessity for survival, stocks are not. So, the government sacrificing your stock portfolio to…

Reciprocal tariffs will drive up the cost of most goods, making everyday life more expensive for American households. According to Fitch Ratings, the U.S. tariff rate on all imports has jumped from 2.5% in 2024 to around 22% today. Some research firms…

Well, folks, after 16 years of diligently writing three free posts a week, I’ve finally decided to erect a paywall. Originally, starting in 2009, my goal was to provide free financial insights for 10 years to help people achieve financial independence sooner.…

Stagflation is a rare and challenging economic condition where slow or stagnant growth, high unemployment, and persistent inflation occur simultaneously. Typically, inflation rises when an economy is expanding and demand is strong, while recessions tend to bring lower inflation due to weaker…

One of my goals is to put my kids to work so they can earn money, contribute to a Roth IRA, and learn the value of hard work and the power of investing. By age 18, they’ll have roughly 10 years of…

Back in 2019, I remember being surprised at a survey by toy maker Lego that asked young adults what they wanted to be when they grew up. The top answer was YouTube creator! Of the 3,000 children surveyed between the ages of 8…

To my dismay, my beloved hot tub stopped working the other day. It had been fully operational since 2016, but when I went to visit it for a late morning soak, I found its GFCI circuit breaker not working. When I tried…

Since 2009, I’ve been writing about the importance of working to live—accumulating wealth to achieve financial independence and freedom. But despite years of advocating for this lifestyle, I’ve come to realize that convincing people remains an uphill battle. Instead, I now have…

Despite the wonderful peace of mind that comes with owning a home free and clear, deciding to pay off a low-interest rate mortgage early is not always straightforward. If your mortgage rate is low compared to risk-free investment returns, keeping the mortgage…

While visiting my parents in Honolulu this past winter, I ended up driving my dad’s 28-year-old beater for eight days. He bought that Toyota Avalon new in 1997—back when I was a college sophomore and he was stationed in Guangzhou, China for…

As I sadly watch my stock portfolio correct by over 10%, I find serenity in my paid-off home. No matter how much the stock market tanks, it’s comforting to know I’ll always have shelter to take care of my family. It’s funny,…

Unfortunately, the chances of another recession are increasing, largely due to the uncertainty set forth by the new administration. When uncertainty rises, we collectively tend to spend less and save more. As a result, corporate profit growth may slow, stock prices could…

Let’s say you’ve come into a large sum of money—perhaps $1 million or more from stock grants, a bonus, or the sale of a home. Congratulations! After accounting for taxes, the real challenge is deciding how to invest it. Given the significant…

With fears of a recession rising again largely thanks to the Trump administration’s aggressive policy measures—tariffs, spending cuts, aggressive layoffs, and an increasingly combative trade stance—it’s time to awaken the vulture investor within. Both Main Street and Wall Street are at risk…

As I watch my stock portfolio correct, I take solace in knowing that my real estate portfolio continues to chug along despite the chaos, fear, and uncertainty. With mass government personnel cuts, new tariffs against Mexico, Canada, and China, a heated Oval…

I recently came across an eye-opening chart by the National Association of Realtors showing that the median age of first-time U.S. homebuyers is now 38 years old. That’s a significant jump from 30 years old between 2008 and 2010. Meanwhile, the median…

If you don’t believe the world will grant your children a fair chance to succeed, you may want to take matters into your own hands as parents. One way is to set them up for financial independence—ideally making them millionaires before they…

If you knew that no matter how hard you tried, success was impossible or practically impossible, would you still push yourself to the limit? Or would you rationally pivot to another endeavor with a real chance of success? Personally, if the odds…

I keep reflecting on how incredible 2024 was. With the S&P 500 up 23%, Bitcoin surging, and residential real estate climbing in most of the country, personal finance enthusiasts have had an amazing year. The investment gains almost feel like free money—and…

Unless you are incredibly rich, it’s highly likely that your vacation property is smaller than your primary residence. Having a smaller vacation property is a rational choice given you don’t live there as long as you do your primary residence. Further, it’s…

There are plenty of reasons people choose not to have kids, with the cost of raising them being a major one. Another big factor is the fear that children will disrupt an ideal FIRE lifestyle. Many envision a life of traveling the…

When I lived in the Marina neighborhood of San Francisco, I could walk to endless bars and restaurants within 10 minutes. It was the perfect place for twenty- and thirty-somethings to live, socialize, and indulge in city life. Back in 2005, at…

Recently, I went off the deep end—living like a degenerate gambler and party animal—and I wanted to reflect on it. Perhaps to nobody’s surprise, I don’t think having an extreme amounts of fun is good for your financial future. It’s probably also…

One of the reasons I left my job at Credit Suisse was that I no longer felt I was being paid based on merit. After the global financial crisis, the firm—like many others—faced tough times, and overall compensation steadily declined for years.…

If there’s one lesson I’ve learned the hard way in real estate, it’s that a full-on, gut-remodel can be a nightmare. After years of painful, unpredictable remodeling projects, I can confidently say: I will never do a complete remodel again. Instead, I…

On February 6, 2025, the White House announced a series of tax cuts primarily benefitting the middle class and retirees. Here’s what’s on the table: No tax on tips No tax on Social Security benefits for seniors No tax on overtime pay Renewing the…

The beauty of hard work is that any able-bodied person can do it. If you put in more hours honing your craft than the average person, chances are you’ll achieve far greater success than the average person. If you happen to be…

As a stock market investor, I’m disappointed in the new tariffs President Trump has imposed—10% on imports from China and 25% on imports from Mexico and Canada, including a 10% duty on Canadian energy imports (oil, natural gas, electricity). If these tariffs persist all year without…

As someone who literally wrote the book on how to negotiate a severance package, I love severance case studies! The second rule of FIRE (Financial Independence Retire Early) is simple: never quit your job—always try to negotiate a severance. If you’re planning…

One adjustment I’m making to my net worth asset allocation is reducing exposure to closed-end venture capital funds while increasing allocation to open-ended venture capital funds. Closed-end venture capital funds follow a traditional model: you commit capital, fund capital calls, and rely…

China’s DeepSeek has shaken up the AI world with the release of an open-source AI model that reportedly outperformed OpenAI’s in several benchmarks. Even more startling is the company’s claim that its AI technology was developed for only $5.6 million. This figure…

After over two years of writing and editing, I’m thrilled to finally share my upcoming new book with you: Millionaire Milestones: Simple Steps To Seven Figures! If you’ve enjoyed my writing on Financial Samurai over the past 16 years, you’re going to…

If there’s one thing I don’t recommend, it’s buying stock on margin. Due to the volatility of stocks and high margin interest rates, borrowing money to buy stocks is a bad idea. Conversely, I’m not opposed to buying a home on margin,…

In this Financial Samurai podcast episode, I speak to Ben Miller, co-founder and CEO of Fundrise about his outlook for residential commercial real estate in 2025. Despite high mortgage rates, he’s taken a positive view and he shares the main reasons why.  Listen to…

A couple earning $500,000 a year should feel rich, right? That’s top 2% territory in America—plenty of cash to save, invest, and splurge on the finer things in life. Or so you’d think. But when I dive into the financial lives of…

Did you know that a whole life insurance policy can actually help you make money? It’s true—and it’s a strategy sometimes used by those with higher incomes and net worths. For those seeking life insurance coverage, a term life insurance policy is…

With the tragic fire that occurred in Lahaina, Maui, hurricanes ripping through Florida yearly, and now the devastating Southern California fires, it’s important to review your home insurance policy and understand what it does and does not cover. You also need to…

2025 has gotten off to a rough start with devastating fires and corrections in stocks, bonds, and other risk assets. So, I thought it’d be a good idea to shift focus to some positives—before they fade as well. Take a moment to…

Artificial intelligence (AI) is causing an existential crisis for many workers, myself included. With the rise of AI, I’ve often found myself wondering: what’s the point? If AI is going to take over, why bother trying? Maybe you’ve felt the same way—worried…

One of my goals for 2025 is to simplify life by selling a rental property. A key decision in this process is whether to hire a top-tier real estate agent, who charges a higher commission, or opt for an average agent to…

One of the biggest reasons I was against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to pay a higher tax rate in retirement than…

If you’re a FIRE parent, one of your biggest concerns might be raising a spoiled and entitled child who takes hard work and money for granted. If this happens, it may feel like a significant failure—not only for your child’s future but…

Happy New Year everyone! I hope you’re enjoying the time off and doing some reflecting. I’ve returned to San Francisco and am ready to relax some more! Now that I’ve shared my 2024 year in review, I wanted to share my goals…

With 2024 almost done, I’d like to share my year in review. For the vast majority of investors, this was a banner year, with the S&P 500 up ~24% and real estate prices in most of the country continuing to inch higher…

As we wrap up 2024, it’s time to highlight the best posts from Financial Samurai this year. When I started Financial Samurai in July 2009, my goal was to publish three posts a week for 10 years. I achieved that milestone in…

Merry Christmas and Happy Holidays, everyone! I’m spending the week with my parents in Oahu and wanted to share my latest travel adventure. Personally, I can’t stand flying—especially in America—because it feels like something always goes wrong. Just as I shared about…

When you reach financial independence or retirement you may eventually experience a sense of emptiness. After years of hard work, aggressive saving, and smart investing, you might feel a letdown because the toughest financial challenges are behind you. Based on feedback from…

“Flexing” is a slang term that means showing off or boasting about one’s accomplishments, possessions, or skills, often with the intention of impressing others. For example, someone might “flex” on social media by posting pictures of luxury items or sharing stories about…

With another strong year in the stock market, it’s time for investors to celebrate! While marveling at the growth of your portfolio is satisfying, a more rewarding way to celebrate is to actually spend some of those phenomenal returns on things that…

After speaking to dozens of parents, a principal a couple of times, and a financial aid officer, I’ve determined the biggest financial misconception about applying to college is that you have to be poor or middle class to receive financial aid. The…

Real estate is inherently local, with property values closely tied to the economic drivers and characteristics of specific regions. While understanding the national housing price forecast for 2025 provides valuable context, savvy investors should focus on identifying cities and states with stronger…

Now that I’ve shared the 2025 S&P 500 target price forecast, let’s dive into housing price forecasts for 2025. The outlook from housing analysts is positive, with expected gains ranging from -0.4% to 10.8%, and an average of about 3%. The only negative…

Sin—actions deemed morally wrong or harmful—can be difficult to resist, especially when money is involved. A hefty paycheck or a prestigious title can make it easier to overlook the potential harm our work may cause society. Moreover, unless you’re working for free, there’s…

I recently had dinner with Steve Chen, founder of Boldin, in San Francisco, and I’m excited to deepen my partnership with his company. Since first writing about Boldin (formerly NewRetirement) in 2021, I’ve seen how much the platform has evolved and expanded…

There’s a lot of enthusiasm for Roth IRA conversions and Mega Backdoor Roth IRAs—and for good reason. Paying taxes upfront on your retirement accounts can be a savvy move, especially if you’re in a mid-to-lower federal income tax bracket, as it allows…

The 2025 Wall Street S&P 500 forecasts are rolling in, and so far, the outlook is all bullish. I haven’t found a single bearish forecast, which is somewhat worrisome. Most firms project the S&P 500 will close 2025 around 6,500—a solid 8.3%…

I firmly believe that above-average wealth is largely a result of luck. If we fail to recognize our lucky financial breaks, we risk confusing our abilities with good economic times. This overconfidence can lead to poor decisions and increase the likelihood of…

The Santa Claus Rally refers to a historically observed stock market phenomenon where U.S. equity markets tend to perform well during the last five trading days of the year and the first two trading days of the new year. Historically, the average gain during…

Ever since I started saving for retirement in 1999, I’ve been a proponent of tax-deferred retirement vehicles like the 401(k) and skeptical of tax-now vehicles like the Roth IRA. Working in banking, I was already being taxed out the wazoo and had…

Health insurance is one of the most complex and aggravating topics for both consumers and providers in the US. Speak with anyone based outside the US and they all will comment about how much better things are abroad versus here. But as…

If you want to optimize your life, it’s essential to understand the concept of Return on Effort (ROE). The higher your ROE, the more you get out of your efforts, making it an invaluable framework for decision-making. ROE can also help you…

Being financially independent means having enough passive income to cover your essential or desired living expenses. A common guideline is to aim for a net worth equal to 25 times your annual expenses, often used as a baseline for achieving financial independence.…

I had the pleasure of speaking with Bill Bengen, creator of the “4% Rule” for retirement planning. Bill has been a reader of Financial Samurai for many years and has always been courteous in the comments section when I write about safe…

After reviewing my analysis on a conversation I had with a financial professional in 2013, I decided to take another close look at my finances. To my surprise, I uncovered a huge gap between my perceived risk tolerance and the reality of…

One reason many people shy away from competition is that they dislike losing. With often only one winner, the sting of defeat can feel too humiliating. When people stop competing, they can become more fragile over time, to the point where even…

The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power…

With Donald Trump set to become the 47th President of the United States, it’s natural to wonder what this new administration could mean for your finances. For most people under 30, a change in leadership might not significantly impact financial planning. In…

Every time a political candidate asks if you’re better off than four years ago, I can’t help but sigh. The implication, regardless of party, is always that you’re worse off and that they are the answer to your problems. The Democrat says…

The IRS has announced new income limits for its seven tax brackets for 2025, with income thresholds increased by about 2.7% to adjust for inflation. This follows a 5.4% increase in 2024 and a historically large 7% bump in 2023 due to…

Out of all the things you could donate your hard-earned money to, giving to your child’s school might not be at the top of your list. If your children attend a private grade school with sky-high tuition, donating to the school might…

As an investor, it’s essential to understand that risk assets come with no guaranteed returns. Setting and following a stop loss can help protect your capital, especially if you’re an active investor who picks individual stocks. Without stop losses, you could expose…

Since the bottom of the global financial crisis in July 2009, the S&P 500 has generally experienced a strong bull market. While there were challenging periods in 2018, 1Q 2020, and 2022, stock market investors have largely been well rewarded. However, Goldman…

Before retiring in 2012, I didn’t fear boredom or loneliness. It never occurred to me that I would be bored with so much potential freedom. My main fear was whether giving up a steady paycheck was an impetuous move that could lead…

October 2024 marks one year since I purchased the most expensive house I could afford. Leading up to the purchase, I wrestled with uncertainty about whether buying such a home was the right move. For most, a home is the largest purchase…

Empower is offering free financial consultations until October 31, 2024, for anyone with over $250,000 in investable assets. I wanted to share my experience speaking with them and how I began my investing journey. If you complete two video calls by the…

This guest post is by Vaughn, a long-time Financial Samurai reader who retired at 44 and is now 55. Vaughn’s early retirement was driven by necessity rather than choice due to a congenital bone disease. Fortunately, his high income during his working…

One of the worst experiences for a homeowner is filing a home insurance claim only to be told it’s not covered. After years of paying premiums, the insurance company doesn’t deliver when it’s needed most. What a disappointment. This disconnect happens because…

Retiring early with a severance package is one of the smartest ways to leave the corporate world. Walking away without trying to secure one could leave tens of thousands, or even millions, on the table. I also believe that retiring early is…

As a parent, your top priority is to protect your children until they are old enough to fend for themselves. Protecting your children requires good health, being alive, having resources, self-defense skills, and using common sense. If you’re missing one of these,…

There are two things most financially-conscience people aspire to: retiring rich or retiring early. But which is better? Many people who haven’t retired believe early retirement sounds fantastic, especially since so many are disengaged from work. On the other hand, who wouldn’t…

For about 10 years, my father has been my primary editor on Financial Samurai. When my father isn’t available, my wife steps in. This system has allowed me to maintain a consistent publishing schedule of three posts a week with a relatively…

One of the most significant developments to come out of the pandemic, if not the greatest, was the shift to remote work for millions of employees. Beginning in March 2020, businesses quickly adapted out of necessity, keeping their operations afloat with employees…

I remember being a broke college student during my senior year at The College of William & Mary. A group of us gathered at the Spanish House, the language immersion dorm where we lived, to brainstorm easy ways to make money. None…

Recently, I hit a major milestone in my journey to overcome what I like to call “frugality disease.” I spent $160 for an hour of private lessons for my two kids. In the past, I would’ve never paid such an amount. I’ve…

Have you ever walked into a home and instantly felt cozy, even in the heart of a bustling city? It’s hard to pinpoint exactly why it feels so comfortable and serene amidst all the noise and chaos. In this post, I’ll break…

At long last, after four years, the Federal Reserve has finally cut the Fed Funds rate by 50 basis points, bringing the target range down to 4.75% – 5%. Expectations suggest we’ll see another 50 basis points cut in 2024, with a…

If you’re increasing your safe withdrawal rate for retirement now, you’re likely making a mistake. You might be inadvertently top-ticking the market as the Fed embarks on what is likely a multi-year rate cut cycle. One of the main reasons the Fed…

With record-high home equity and declining mortgage rates, the temptation to do a cash-out refinance is growing. I’ve certainly considered it myself. However, after careful reflection, my conclusion is that it’s probably not the best move. Having written about refinancing since 2009,…

In my post about illegal immigration, a commenter pointed out that I was lucky to avoid greater financial consequences from my car accident. It turns out that the maneuver where a car accelerates from a stop and then suddenly slams on the…

Like millions of others, I watched with intrigue the first—and potentially only—Donald Trump and Kamala Harris presidential debate. One of the most important topics discussed was illegal immigration and how the Biden/Harris administration allowed millions of illegal immigrants to enter the country.…

At long last, the time has finally come for the Fed to begin cutting rates in September. As a result, real estate investors will likely benefit from a tailwind over the next couple of years, after a rough prior two years. Mortgage…

In 2013, Students for Fair Admissions (SFFA) filed a lawsuit against Harvard University in the U.S. District Court in Boston. They alleged that Harvard’s undergraduate admission practices violated Title VI of the Civil Rights Act of 1964 by discriminating against Asian Americans.…

One of the investing strategies growing in popularity with the wealthy is Direct Indexing. Before my consulting stint at a fintech startup in 2024, I had never really heard of Direct Indexing. If I did, I likely assumed it simply meant directly…

In April 2017, I made a commitment to be a stay-at-home parent for the first five years of my son’s life. When my daughter was born in December 2019, I made the same commitment for the sake of equality. Research shows that…

Since I purchased my house in October 2023, I’ve been feeling broke. I’m living paycheck to paycheck to cover my bills and fund venture capital calls. In fact, even after realizing I had missed a $25,000 capital call, it took me another…

Last month, I missed a $25,000 capital call without even realizing it. The Managing Partner of the fund, a friend I’ve known since business school, texted me while he was on vacation. He wrote, “Hi Sam—hope you’re having a good summer. I’m…

Needless to say, a $20 million net worth is a substantial amount of money. It firmly places you within the top 1% of net worth, with the current minimum threshold around $13 million. Previously, we discussed how a $10 million net worth,…

Like most people, I enjoyed watching the Olympics. Some of us might even imagine our children becoming elite athletes one day. Unfortunately, becoming a great athlete is prohibitively expensive for most people, requiring significant time and money to achieve greatness. I’ve played…

If you’re a real estate investor with children, you may face two significant challenges or problems. The first challenge is holding onto your rental property for as long as possible. You understand that the longer you own real estate and stocks, the…

With the real estate industry finally lowering commission rates after August 17, 2024, a battle is brewing among brokerages and agents to win business. For example, Sotheby’s has decided to charge 2% to the seller and 2% to the buyer—or even less—to…

I recently received an email from an agent at Sotheby’s, a prominent real estate brokerage with 1,115 offices located in 84 countries and territories worldwide, and I thought it was worth sharing. The email likely originated from Sotheby’s senior management and was…

In a previous post, I discussed the futility of working when your net worth is declining. During a stock market crash or recession, your Return on Effort (ROE) for working drops significantly. Therefore, the only way to increase your ROE is to…

The latest stock market correction cost me about five times what I made consulting part-time for four months. If I were smarter, I would have sold 100% of my rollover IRA before stocks started to tumble, then bought back in several weeks…

Life is easier when you can make a positive connection with other people. As I discovered recently, creating a connection with your service provider can also save you money or provide you better service. One of the ways I’m decumulating wealth is…

Starting on July 16, 2024, we had a mini-stock market crash with the S&P 500 declining from 5,667 to 5,186 by August 5, 2024 (-8.5%). The NASDAQ saw a larger drop, falling from a high of 18,647 on July 10, 2024, to…

Starting at age 45 in 2022, I consciously started focusing on decumulating wealth. I realized that my life was likely half over, and I needed to start spending more to prevent dying with too much money. If I died with too much…

In today’s world, we are increasingly aware of the challenges that affect our mental health. Many of us experience mental health conditions ourselves or know someone close to us who does. The difficulties of day-to-day life can cause significant anxiety about what…

Money dysmorphia is a negative and unrealistic perception of one’s financial wellness or position. If you have money dysmorphia, you might constantly worry about your finances, even if you are doing well for your age. One significant reason for experiencing money dysmorphia…

With elections approaching, let the political mudslinging and dirt-digging begin! This time, it’s regarding being childless and loving cats. Republican VP nominee JD Vance said this during a 2021 interview with Tucker Carlson: “It doesn’t make any sense that we turned our…

After publishing my post, “When To Stop Contributing To A 529 Plan,” I felt a sense of emptiness. For years, I had been trying to find a logical way to decide when to stop saving for my children’s college education. When I…

After 12 years of FIRE (financial independence retire early), I went back to work. Unfortunately, I only lasted four months. Here’s my story of what went wrong. I purposefully waited months to release this post to ensure I was thinking logically and…

I’m a fan of both stock dividends and rental property income, my two favorite sources of passive income. When younger and less wealthy, rental property income may be preferable. As you age and accumulate wealth, you’ll likely appreciate stock dividend income more…

There’s a classic saying, “Youth is wasted on the young.” It’s meant to convey that those who are young lack the perspective to appreciate all the advantages of youth and thus take it for granted. After more than seven years of being…

Everyone with children should contribute to a 529 plan. It is a tax-efficient way to save for college since none of the gains are taxable if used for approved college expenses. Today, it costs about $200,000 in total for four years at…

The failed assassination attempt on Donald Trump reminds us that more important than political bickering is the value of life. I hope there will be a coming together of both parties to help heal and strengthen the spirit of the American people.…

We’ve all heard the phrase, “Be greedy when others are fearful, and fearful when others are greedy.” But what about being even greedier when others are greedy?! As I sat peacefully in the hot tub recently, I began to recollect all the…

If you have a rental property that is generating positive cash flow and is expected to appreciate in value over time, then you must hold onto it for as long as possible. The problem, however, is you might have tenant issues that…

If you own a rental property and are thinking of selling, don’t do it unless you absolutely have to. To build great wealth, aim to own your rental property for as long as possible. As fate would have it, my great tenants…

During a recent liquidity crunch, I kept thinking how nice it would be to have more cash sitting in my bank account. Once I received a $106,000 real estate capital distribution, I felt a tremendous relief. But then I was faced with…

In the second half of 2023, I significantly impacted our passive income, causing our household to technically lose its financial independence. Prior to this, we had been financially independent since 2012, when I left my banking job. My goal now is to…

After taking my family on a nine-day vacation to Honolulu, Hawaii, my plan to relocate there is back in the cards! Since 2014, two years after retiring from my finance job, I’ve been contemplating moving back to Honolulu to spend more time…

As an investor, understanding financial ratios is important to help assess the current state of a company. For example, we have P/E ratios, debt/equity ratios, EV/EBITDA ratios, interest coverage ratios, and so many more. We then compare each ratio to another company’s…

A large part of building wealth involves delaying gratification. Therefore, you might find yourself wondering whether to buy your dream home now or wait for a better price. But what if you wait too long and your dream home disappears forever? You…

If you bought a home during a high-interest rate environment, it’s wise to prepare for either a mortgage refinance or a recast. Interest rates have been gradually coming down since their highs of 2022, and I suspect millions of existing homeowners will…

Since 1999, I’ve been climbing up the property ladder to find the perfect house in a big city. What I’ve realized is that there’s no such thing as the perfect house. There’s a good-enough house or an almost-perfect house, but there’s always…

If you want career, financial, and social success, don’t beat up your opponents too badly while smiling. This advice might sound odd or even obvious, but not adhering to it can have tremendous negative consequences. Anyone who has ever jet-skied knows it’s…

During my days of purchasing homes with mortgages, I had a fondness for adjustable-rate mortgages (ARMs). The appeal lay in securing a lower interest rate compared to a 30-year fixed-rate mortgage. Further, it’s better to align the fixed-rate duration with my planned…

When my son was born in April 2017, I promised to become a full-time father until he turned five. I was so serious about this commitment that I sold our largest rental property to free up time. This property was supposed to…