Don’t Go to the Caribbean and Spend Dollars, Come to Mexico and Spend Pesos!

source

Thursday night here in Mexico City started out rough. We were supposed to be going to a free salsa class on the rooftop overlooking the national square, but the class got canceled. A group decided to go out on the town, so I thought, “why not?” We started walking several blocks south and walked into the Regina bar, which is easily has the sketchiest entrance I’ve ever been to. Imagine a NYC multilevel building lit up on the first floor with graffiti all over the stairway. I was a little weirded out at first but everyone was going in so again I thought, “why not?” We walked to the top of the building, and the bar was beautiful. There were paintings covering the walls and a group of friendly locals who started speaking to us about what to do in Mexico. When the bar closed down after getting some beer made from corn, they walked down the stairs with us. One of the local Mexicans gave me some great advice I wanted to share with you. He looked me dead in the eye and said in English, “Don’t go to the Caribbean and spend dollars, come to Mexico and spend pesos!” Let’s think about how true those words really are.  Continue reading “Don’t Go to the Caribbean and Spend Dollars, Come to Mexico and Spend Pesos!”

What is Going on With the Chinese Stock Market Right Now?

source

If you don’t follow financial markets too regularly, you might have missed the fast and spectacular drop in Chinese stocks the past few days. We have seen a daily negative 7% performance in the broad Chinese stock market indexes two times in 2016 already. Since experts have been talking about the possibility of a Chinese recession destroying the demand for oil and causing global slowdown, I thought I would explain my take on it for Moola readers. This is not to be scientific, just a personal opinion in what is a very complex market situation. Continue reading “What is Going on With the Chinese Stock Market Right Now?”

Traveling From Mexico City Airport Is Dirt Cheap

random4
Plaza Zocalo, the one from the James Bond movie

It’s here!! Millennial Moola trip around the world part 2! I took advantage of a non stop flight with Jetblue from Orlando to Mexico City for $73 to explore Latin America for two months. People ask me sometimes if I run out of things to write about, but traveling really has a way of obliterating writer’s block. I thought I’d share with you the insane value of the Mexican Metro system, created from the drastic rise in the dollar and overall affordability of Mexico City. In fact, the trip from the Mexico City airport was the cheapest I’ve ever experienced. I’ll hold the surprise on how much I paid until the end, but so far I love what I’m seeing in one of the biggest cities in the Western Hemisphere.  Continue reading “Traveling From Mexico City Airport Is Dirt Cheap”

How Can You Retire Early Without a Crystal Ball?

retire early
Source

Thanks to Moola Reader Bryan for these questions about how to retire early. I’ll answer them below. Hopefully I can do several more of these kind of quick hit answers to your financial questions. If you have some that you’d like to see me respond to , email me at [email protected]

1) What do you say to emergency expenses and end of life health care cost increases?

2) The 4% rule supposedly gives you a safe, constant, indefinite income. That might be ok if you’re 50 or 60 and only plan to be on it for a few decades. If you’re 25 you’ll be relying on that income for quite a lot longer, and over that time span inflation will kill a constant income. Continue reading “How Can You Retire Early Without a Crystal Ball?”

Millennial Moola 2015 Year in Review

Millennial Moola 2015
Source

It’s been a good year here at MillennialMoola.com. I’ve gotten a kick out of writing for you all and finally putting digital pen to paper on a lot of my best ideas. I started blogging not to make money, but to help, entertain, and educate people on all things financial. It’s been really fun, and now that I have figured out a lot of the technical aspects of website management, I’m hoping a for a prosperous 2016. In the interests of being transparent and helpful to anyone who’s thinking about starting their own website, I wanted to include my web traffic, income, and expenses for Millennial Moola 2015. Continue reading “Millennial Moola 2015 Year in Review”

The One Retirement Equation To Rule Them All

theretirementequation
Source: Millennialmoola.com

How much will you need to save to afford retirement? The life insurance agents and brokers you talk to give generic rule of thumb answers provided by their companies. “Save 8 times your income”, “Replace 75% of your salary”, and “Your portfolio should be 25 times your annual spending” are all popular suggestions. However, what if you want a mathematical answer to describe retirement? It can be described with one retirement equation,  which is useless unless it helps to understand our personal finances on a deeper level. Let’s break down the one above and see how it can answer your questions about retirement.  Continue reading “The One Retirement Equation To Rule Them All”

New Guest Post on White Coat Investor!

5 Questions to Answer Before Buying Individual Munis

I got a cool opportunity to write a guest post on White Coat Investor, run by a very savvy doctor turned blogger named Jim. As I’ve written before, I worked for a few years as a municipal bond trader at Vanguard. I was looking for a chance to share some of the knowledge I gained trading $8 billion in municipal securities for the tax-free Vanguard bond funds, and I finally got a chance. Jim’s WCI blog is targeted at high income physicians who have high tax burdens, so I thought I’d write a piece on how to earn tax free income by investing in the municipal bond market. If you are or will be in a high tax bracket one day, it’s very relevant to you.  Check it out here

The Millennial Moola Guide to Buying Your First House

buying your first house
Source

You’re in your first big professional job out of college. You’ve been renting for a couple years, but you’ve decided to finally make the big leap and purchase your first house. What should you look for? How much can you spend? Are you going to put 20% down or seek government financing? Should you buy a starter home with the thought that you’ll trade up later? There are a lot of choices to make when you’re buying your first house, and Millennial Moola is here to help. Continue reading “The Millennial Moola Guide to Buying Your First House”

Why I Am Cool With My Terrible Portfolio Performance in 2015

terrible portfolio performance in 2015
Source

I’ve taken a real beating in the stock market this year. My performance has been worse than a 50/50 blend of US and International index funds. My personal year to date return is somewhere in the neighborhood of -10%. As I write this, the broad US stock market returned close to 0% year to date and the broad International stock market returned about -6% over the same period. Am I a fraud? Should you completely ignore all my financial musings due to my under performance? The good news is that I have a very specific rationale for investing the way that I do. It helps me stomach my terrible portfolio performance in 2015. Understanding why I have a 100% stock allocation and why I’m not selling anything in response to the market downturn will help you the first time you see a 5 figure loss staring back at you on your account statement. Continue reading “Why I Am Cool With My Terrible Portfolio Performance in 2015”

How Twenty and Thirty Somethings Should Save For Retirement

(source)

You’ve graduated from college and are the proud new owner of a professional job with salary and benefits to boot. First off, congratulations. Second, learn how to save for retirement the right way. It will allow you to retire a decade before most people, or even sooner. Managing your retirement investments well is surprisingly easy. Twenty and thirty somethings should save for retirement as soon as possible. Here’s how to do it. Continue reading “How Twenty and Thirty Somethings Should Save For Retirement”