Oil Stock Investments vs. Commodities Futures Trading
I do not understand how regular commodities trading can be part of any sustainable wealth-building plan. A futures contract is when you agree to buy or sell a commodity at a certain price at a certain...
View ArticleHow Mutual Funds Are Taxed
Similar to partnerships, mutual funds pay no taxes themselves and operate on a pass-through basis (technically, the IRS puts mutual funds in the category of “regulated investment companies”). For tax...
View ArticleWhy The Wealthy Own Timberland
Other than oil and natural gas, guess what is the most widely owned commodity by the wealthy? As the headline gives away, it is timber. Among households with over $2.5 million in investments excluding...
View ArticleWealthy Americans Lie About Charitable Giving
In 1973, Pew Research asked the typical American whether it is okay tell “white lies” or “harmless lies” that were intended to spare the feelings of the lie’s recipient. Over 79% said that this type of...
View ArticleWhy The Mega-Rich Hoard So Much Cash
During the 2008-2009 financial crisis, approximately 1 out of 7 millionaire households liquidated 20% or more of their portfolios. The rest either stayed the course, refusing to part with their...
View ArticleThe Four Risks Of A Real Estate Investment
There is a reason why you don’t see many investors get interested in physical ownership of real estate until they can ensure that they can afford a property management company to run the day-to-day...
View ArticleAmerica’s Wealthy Top 1 Percent Didn’t Inherit It
In 1900, it required a net worth of $39,000 to be classified as America’s top 1%. The median factory worker earned just shy of $500 per year. At the end of the Gilded Age, it would have been a fair...
View ArticleInvesting In Artwork Will Eat You In Fees
I do not like art as a long-term investment. Why? Artwork not generate any cash flow. Strike One. Artwork costs money in storage fees. Strike Two. Artwork costs insurance. Strike Three. Batter out!...
View ArticleFive-Step Guide To Picking A Mutual Fund Investment
I include below five factors that I consider when evaluating a mutual fund offering that are a little bit different than the standard/conventional advice that is repeated ad nauseam on the topic: #1....
View ArticleWhy Don’t Small Corporations Have A Lot of Cash?
You also have to guard yourself against those instances in life where rational decision-making on your part creates perverse incentives for counterparties that you may encounter. For example, I don’t...
View ArticleStealth Wealth: Why You Don’t Notice America’s Millionaires
In the United States today, there are almost 11 million individuals with a net worth of $1,000,000 or more, excluding the value of their primary residence (the figure tops 20 million if you count...
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How Eminem Built His Net Worth: Four Lessons
I was recently studying the story of how Eminem built up his $400-$600 million net worth, and I was struck by how various efforts throughout his career led to vastly different financial results. The...
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How Bill Gates Built His Net Worth: Four Lessons
As one of the founders of Microsoft, Bill Gates was able to build his net worth from $0 to $100 million while he was in his 20s and 30s. That is part of his brilliance that is difficult to replicate....
View ArticleThe Horrible Math Of Being A Corn Farmer
I do not think you can make it as a small farmer in the United States anymore. I find it very sad that I have reached this conclusion, as I am ideologically sympathetic to the argument that producing...
View ArticleWiping Out A Trust Fund Through Litigation
When you deal with trust fund administration, there is a lot that can go wrong. The typical pitfalls are usually related to the fact that the beneficiary of the trust is not the one who made the money...
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Illinois Launches 20% Privilege Tax at Financial Professionals
Perhaps a little more often lately, you come across pending legislation in which you can actually feel a politician stick his hand into your pocket and help himself to your wallet. Such a reaction is...
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American Credit Scores Hit Top Of Range
Between now and 2020, you will likely encounter statistics and headlines pointing out that the top range of the average American credit score has recently risen. There is a reason for this. It is...
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The Secret to Investing in Bonds
If you read an intermediate level finance textbook, you will encounter advice that discusses the relative safety of bonds. Usually, you will encounter information that says something to the effect...
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Corporate Insiders Have Forgotten The Warren Buffett Feud With Seabury Stanton
Many of you reading this are familiar with the backstory of how Berkshire Hathaway came to be the chosen investment vehicle that built Warren Buffett’s vast fortune. Buffett noticed that the price of...
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Apple Stock’s Slice of America
About a year ago, Apple stock (AAPL) traded at $92 per share. Right now, it is trading at $155 per share. This significant June-to-June swing of 68%–a little over 70% when you include dividend...
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