Sideways8 - Infinite Thinking for Personal Finance

Why Stillness Can Make You Rich

By S8Webmaster | November 26, 2019

Please let me preface this post by the fact that my wife, Nikki, is more grounded than me.  I think about the future – a lot.  Which bodes well for clients; it doesn’t always for a spouse.  I’m obsessed with making things better, incremental improvements, and never stopping.  Finding contentment and being grateful comes more naturally to Nikki. That’s necessary to say because the personal story below is counter to that fact, and I share this with her permission.  It was a good learning experience in our marriage and thought you might benefit, too. Like many professionals in their late…

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Sideways8 - Infinite Thinking for Personal Finance

Financial Independence Is An Onion

By S8Webmaster | November 26, 2019

There are many complicated layers to being financially independent – like an onion.  First a quick personal story for analogy. I use Wednesday as a day to be less structured.  It’s my day to be in less of a hurry, more creative, and to think.  The highlight of the day is putting our oldest child, Stella, on the bus.  She’s in Kindergarten. There’s comedic relief in the process itself.  Our house is less than a mile from the school.  Walking or riding her bike would make great sense when it’s warm enough (cue the stories that any Grandfather could share…

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Sideways8 - Infinite Thinking for Personal Finance

“Get Off My Lawn” vs. “But This Job Isn’t My Passion”

By S8Webmaster | November 14, 2019

The topic of polarization has been covered at nauseum, especially in consideration of our current political landscape, but I’m going to give it a whirl from a slightly different angle – and, make the claim that this topic has a substantial impact on everyone’s future wealth accumulation/preservation story. Let’s try to come at the topic of polarization from the perspective of age.  While it’s unfair to both generations, I’m going to limit most of my perspective to Millennials and Baby Boomers, but this is largely an ‘older vs younger’ generational topic that doesn’t change a ton over time – it…

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Sideways8 - Infinite Thinking for Personal Finance

Finding Advice Applicable to You

By S8Webmaster | October 31, 2019

I recently wrote about the ‘expert mindset’ in Be Wary of the Expert.  The post was meant to encourage all of us to continually learn and be open to being wrong vs putting a stake in the ground as the expert.  The feedback was interesting on the post, not unexpectedly. My view on the ‘expert mindset’ is akin, but not the same, as being a niché financial advisor or having a client type where the advisor’s best work becomes most apparent.  Or, from the client inter-face, searching for an advisor who is experienced in helping people achieve what you wish to…

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Sideways8 - Infinite Thinking for Personal Finance

Fill Up That Tax Bracket for Uncle Sam (And You)

By S8Webmaster | October 25, 2019

We all have a silent business partner.  His name is Uncle Sam.  He requests that you buy him out before you take your money home.  He gets a bad rap, but he’s not a bad guy.    Let’s just make sure we’re not paying above FMV.  Roth IRAs can be a useful tool. The Roth Conversion has become a popular strategy and here is one of many ways that is useful for both young high-income earners and retirees. Fill Up That Tax Bracket.  By converting some of your tax deferred savings (i.e. Traditional IRA) to a Roth IRA, you’re electing to…

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Sideways8 - Infinite Thinking for Personal Finance

Be Wary of the Expert

By S8Webmaster | October 10, 2019

If only I could take credit for this recent Tweet by an industry colleague: Me: Oh, that’s interesting.  I’m not familiar with that designation.  What’s it stand for? Other finance dude: Ummmmm, I don’t really remember.  I bought it like 10 years ago. LOL. In addition to its entertainment value, the Tweet also made me ponder the idea of being an expert and how much we all signal our level of knowledge to others.  Why do we care so much about being an expert?  I’m going to draw some key distinctions between being experienced and having an expertise.  At risk of sounding like…

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Sideways8 - Infinite Thinking for Personal Finance

$1,000 Decisions vs $100,000 Decisions

By S8Webmaster | October 3, 2019

$1,000 decisions are important.  Managing your cash flow is important.  If ignored, they can add up to much larger concerns.  $100,000 decisions are even more important.  Because they are often less obvious, more abstract, beyond conventional thinking, and push our comfort zone – they capture less of our attention.  The 80/20 rule is almost always a good rule of thumb.  Put 80% of your energy into $100,000 decisions.  20% of your energy into $1,000 decisions. 20% of your energy: $1,000 Decisions: Buying a ‘hot stock’ because you like the company Buying coffee throughout the year Eating out for lunch Peloton…

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Sideways8 - Infinite Thinking for Personal Finance

Long Mortgage? Anyone?

By S8Webmaster | September 30, 2019

In the last 12-18 months, I’ve fielded a lot of questions about mortgages and how they tie into your financial plan.  There seems to be a knee jerk reaction that not carrying a mortgage is your best option and that the sooner you can relieve yourself from all debt – the better.  Sometimes this is accurate, sometimes it’s not. Scenarios do exist where paying off your mortgage or paying your mortgage down more aggressively does benefit you financially and emotionally.  I’ve determined that those are mostly the anomaly.  I’ve also determined that not carrying a mortgage could be one of…

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Sideways8 - Infinite Thinking for Personal Finance

Dancing with Your Fear and Greed

By S8Webmaster | September 18, 2019

In Q3, we typically revisit our client’s risk tolerance.  This year, that review seemed particularly applicable given the volatility we saw in the months of July and August.  I was curious what sort of responses we’d receive.  For the most part, my observations have been that volatility is becoming a bit of our expectation and there isn’t much discussion needed.  Despite the media frenzy, I believe people are better at maintaining a healthy and long-term outlook than TV might portray. That said, we’re all human and I thought this exchange was worth highlighting.  A client responded to an email from…

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running

My Investment Rules of Thumb

By S8Webmaster | September 9, 2019

Transportation/Destination first Your financial plan represents your transportation and destination(s), while your investment portfolio (among other items) are your fuel.  Most importantly, your plan is determined before you fuel the airplane.  Otherwise, our investment selection is based on negative emotions, primarily fear or greed.  Eye on the prize. Costs Largely, I believe in passive ETF investing and individual securities.  This study suggests that professional management can only beat the market well inside 10% of the time.  If that sounds difficult, selecting which manager will complete that task can be even more challenging, as most don’t beat the market consistently.  To be sure,…

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