I recently shared a pot of coffee with my wife of 33 years.  Treasured.  Then went to my office and looked at our stock market portfolio. Depressing. What happened next shocked and scared the hell out of me!   I felt more intensely depressed and bitter about our portfolio decline than feeling happy about sharing coffee with my wife.  Was I crazy?  Have you ever had an experience where a material possession or loss meant more to you than a personal relationship with a loved one? Do you need to visit a psychiatrist? One explanation why your material loss feels more … Continue reading →

Here’s a short answer followed by a long answer. Short answer: 25% ($25,000) Vanguard Intermediate Investment Grade Fund. symbol: VFICX 25% ($25,000) Vanguard 500 Index Fund. symbol: VFIAX 25% ($25,000) Vanguard Dividend Growth Fund. symbol: VDIGX 25% ($25,000) Primecap Odyssey Growth Fund. symbol: POGRX Total: $100,000 Pro: I like this portfolio. 75% of your money is invested in the stock market and 25% invested in the bond market. Hold on to this portfolio for at least 5 years. Don’t touch it. You’ll have a good chance of increasing your portfolio worth. Con: 75% of your money in the stock market … Continue reading →

Listen to your wife. The Spanish painter Joan Miro said about his work: “Like or dislike it. Being indifferent is the worst response.” My Story My wife and I lived a charmed life 10 years ago. We made a lot of money in the stock market and our future looked bright. Our fortunes changed in 2008 when we had the global financial crisis. This crisis was the worst economic disaster since the Great Depression of 1929. We lost a significant amount of our stock market assets. We didn’t sell any positions but we were a lot poorer on paper. Three … Continue reading →

I have a friend who recently had a throbbing toothache. He took lots of Ibuprofen to lessen his pain. He needed a root canal and then a crown on top of his infected tooth. $5,000 later, he’s practicing chewing food on both sides of his mouth. Everyone has an unexpected “financial toothache” sometime in his life. Your car or house may need a costly repair. Or you get sick and have medical expenses. How do you pay for these car bills or medical expenses? You may have the cash. Or you pay the bill with your credit card. You pay … Continue reading →