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Do You Need A Revocable Living Trust?
The short answer is no but before that, a bit about why everyone should have an estate plan. Imagine you have little kids and something bad happens to both of you and you don’t have…
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If You Don’t Know How Much To Save, You Won’t Save Enough
Let us use saving for retirement as an example. The first thing you would want to know is the amount you would spend in the first year of your retirement. You’d then want to inflation-adjust…
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Umbrella Insurance
I am a worrier by design which means I try to protect what I need to protect through liberal use of insurance – life insurance for life, health insurance for health and auto insurance for…
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Dividends Are Not Free Money
Warren Buffett run Berkshire Hathaway paid a 10 cent dividend once in that one fateful year in 1967. Buffett, unarguably one of the best capital allocators ever, later joked that he must have been in the bathroom…
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Survivorship Bias Is Everywhere
During World War II, researchers at the Center for Naval Analysis were trying to decide on where to add reinforcements to damaged aircrafts returning from their bombing missions. Reinforcements add extra weight so not all…
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A Spectrum Of Uncertainty
Bonds are safer than stocks. Cash is safer than bonds. Investing in startups is not for the faint of heart. On a risk-return spectrum, we see an upward sloping line as we go from safe…
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Any Fool Can Make A Fortune
Cornelius ‘Commodore’ Vanderbilt, the American railroad and shipping tycoon, died in 1877 and left behind a $95 million fortune to his eldest son, William H. Vanderbilt. $95 million might not put you anywhere in the Forbes…
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Kids & Money
There is seldom a parent who hasn’t gone through the tantrum-throwing phase of their kids’ lives. You walk into a store, your kid sees a toy and she must have it. The moment you say…
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One Banker, Thousand Borrowers
What you feel is a good investment because of what you see and hear is seldom a good investment. A good investment is usually the one you don’t hear much about. Or if you do,…
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Bridging The Gaps
President Dwight D. Eisenhower was once quoted as saying that in preparing for a battle, I have found that plans are useless, but planning is indispensable. There is no perfect plan because change is the only constant.…