Early Retirement Extreme Forums

WFJ

alex123711 wrote: ↑
Wed Feb 01, 2023 6:12 am
Or are you better off sticking to indexing, knowing the odds of beating the index are very low.

The probability of any individual investor beating the market over a sustained time period is equal to showing up at your local YMCA basketball and finding an NBA player playing a pickup game.

WFJ

Done the nomad thing. It works but visa runs every 1-12 months get tiring when you bore of travel. Also, countries don’t want to see you leave a day or week and return. They want to see you gone for weeks or months and not for years on end. Mexico has cracked down on this practice amongst many othe...

WFJ

We are thinking about doing something similar once the youngest is launched. We hold US passports and aren’t particularly looking to add to or change that. I think our plan is just to use the max tourist visa and then wander elsewhere. That might change if we found some place that we wanted to comm...

WFJ

When you say second residence do you mean buying property in a second country and splitting you time between the two ? Second as in living in a non-US country, not interested in purchasing property. The idea came as each country I'm considering has quite stringent rules and relatively high capital ...

WFJ

Two cents: at 27, learning new skills and having labor flexibility is far more valuable than starting a RE investment that will tie you to a single location. My two most valuable professional traits/assets have been, the ability to learn new skills and the flexibility to financially capitalize on th...

WFJ

One of my former professions was attempting to teach how to use/apply the financial calculator. Out of a large sample, I know of three students who had lightbulb moments and drastically changed their spending/savings habits. Most treated the knowledge of how to use a financial calculator or TVM as n...

WFJ

I reinvest all dividends except one stock. Use income and interest to fund lifestyle. Don't have records, but don't remember ever selling or stopping dividend reinvest to cover expenses. Reinvest eliminates one more decision one has to make with capital.

WFJ

WFJ wrote: ↑
Tue May 18, 2021 1:18 pm
Rough estimates below and biased to the high side.

6/1/2016 2.5%
1/1/2018 1.5%
1/1/2019 2.5%
1/1/2020 1.0%
1/1/2021 0.8%
1/1/2022 0.6%
1/31/2023 0.75% (investments down 6% expenses up, mostly rent)

WFJ

Has anyone been a somewhat permanent nomad for a time period of 1-5 years and have any experiences (good or bad)? I have been exploring a second residence in other countries and it appears it is quite easy and cheap to be a semi-nomadic traveler spending 3-6 months in different countries but complic...

WFJ

@WFJ: interesting strategy I understand logic if you dont have the job right now. Why work hard to find the job when it's hard? But if you already have the job, now is the best time to keep it? Did timing just occur by accident, that you lost jobs when markets crashed? (I guess not full accident......

WFJ

OP: Didn't plan this strategy but worked in practice. My assumption was that the utility of my leisure is fixed, independent of market conditions, but the value of my labor is highly correlated to market conditions. I've worked when times were good and coasted when times were not (maybe 60% working ...

WFJ

OP. Are you (or anyone asking for general advice on moving somewhere they've never even been on vacation) familiar with the parable of the blind men and the elephant? One's experience in SE Asia, Latin America, ISS, the Moon, will depend on what part of the elephant you grab. If one is not experienc...

WFJ

Add: Okay, so this has been done and is given as 4% in 95% of the cases or some such. Now, the question is how many understand what that means and how many go "hey 95% is so close to 100% that it's not going to happen to me!". Would the discussion change if "the answer" was give...

WFJ

https://www.marketwatch.com/story/forge ... 1664559109

https://papers.ssrn.com/sol3/papers.cfm ... id=4227132

IMHO, the 4% rule will leave many in a precarious position at some point in their retirement.

WFJ

Anti-Fragile = Structure your life/career to benefit from stress, like bones. Bones benefit from stress, grow stronger under stress, most modern systems and careers grow weaker over time, become brittle and eventually shatter when exposed to stress. Be like a bone.

WFJ

OP, stop trading anything. Follow the most basic asset allocation model and get a job at Chipotle. The extra money you earn will 10X any return you generate in attempting to hedge currency risks. Currency hedging is INCREIBLY risky and introduces all kinds of issues with taxes and leverage that requ...

WFJ

S&P 500 Quick Ratio 0.53 S&P 500 companies pay almost double the debt with cash. 0% chance the US equity market will be worth $0. Even if all corporate debt had a 1 day duration, there is no chance S&P 500 in aggregate would go bankrupt. Even at 100% rates, S&P 500 would have a value...

WFJ

Theory vs. Practice Most fields have a mix of both, with different levels of importance. Stats is nearly all theory, Finance is nearly all practice (any theory can be tested and either supported or refuted) while Physics can have both theory and practice (something like gravity requires both). ERE a...

WFJ

I would add a Z axis to represent time. The theory vs practice debate is highly dependent from a cross-sectional and longitudinal perspective. In investing, would you rather have no theoretical understanding and be rich and or a have beautiful/robust theory but broke? Know how to do theory, but in r...

WFJ

In my past and future ERE time I roughly pursue a mix of physical health activities and some kind of formal intellectual pursuits. I roughly have these pursuits/ideas always in my mind if I were to be fired or company closed tomorrow my entire life as both of these have happened several times, plan ...

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