Millennial Moola - Page 7 of 21 - Personal Finance For the N64 Generation

Seriously Consider Replacing All Your Bonds With TIPS

The financial advice establishment will tell you that a broad index of diversified bonds make up an important part of a diversified portfolio. Just put 20%-40% of your portfolio in something like Vanguard Total Bond Index Fund, and the volatility you experience in your portfolio can go way down. I don’t believe in this advice anymore. With the 10 year treasury yield at 1.60% as of this past Friday, I don’t think normal US government debt protects you from anything but an extreme deflationary event. You should at least know about another option that might provide better protection for your portfolio going forward, the inflation protected Treasury bond. Consider replacing all your bonds with TIPS in tax protected retirement accounts. Continue reading “Seriously Consider Replacing All Your Bonds With TIPS”

Quottly Review: Dodge Crappy College Courses, Save Money Doing It

Think back to when you attended undergrad. What generic class was the biggest pain in your ass? I recall one course in particular that gave me more trouble than it was worth, Financial Accounting. I struggled with the terrible presentation and annoying homework problems. One day, I saw one of my friends with a Financial Accounting course binder. To my shock, it was an online version of the course from another state college in Florida.

She had no intention of becoming an accounting major, and neither did I. The difference is, she was smart enough to dodge all the busy work. She also fulfilled her degree requirement for the class. Additionally, she paid half as much for the same course at a different school. Not only that, but the class was way easier than the one at UF. In other words, she had way more time to pursue other interests. I had no clue how to find a course like this for myself, but I remember being really jealous.

There is now a way to search for qualifying courses for your degree that can save you countless hours of pointless problem sets and thousands of dollars in wasted cash called Quottly. The founder James is a friend of mine, and we have no financial relationship. I just think it’s a great idea. I’m reviewing Quottly because I think it will save you or your friends and family in undergrad a ton of time and money. Since I know the founder personally, I asked him for a great deal for Millennial Moola readers and he delivered. I’ll tell you what it is at the end. Continue reading “Quottly Review: Dodge Crappy College Courses, Save Money Doing It”

The Worst Funded Pensions in America are in Chicago

The Windy City of Chicago has the worst funded pension system in the United States. A combination of corruption, skipping required pension payments, generous benefits, and ridiculous investment assumptions have put the financial future of the nation’s third largest city in jeopardy. Because of this pension problem, Chicago just raised property taxes by 72% over the next few years. Sadly, it will not be enough to avert disaster. Continue reading “The Worst Funded Pensions in America are in Chicago”

What a Half Million Dollars in Potential Student Loan Savings Looks Like

redtwogreen — Amber and Danny have the most fascinating student loan situation I’ve yet encountered

Amber and Danny Masters are like any other married couple, except they have $591,158.21 in student loans. Their interest rates are sky high at an average annual rate of 6.8%. Unlike many couples in America, they are very serious about paying off this debt. They’ve rearranged their budget to prioritize making extra payments. Additionally, they even started a personal finance website, redtwogreen.com, to track their progress and to achieve their goal of being debt free. Since I’ve started a side hustle consulting for people with six figure student loan balances, I wanted to use my proprietary simulation tool to show you how this couple has more than a half million dollars in potential student loan savings waiting for them. Continue reading “What a Half Million Dollars in Potential Student Loan Savings Looks Like”

Buyer’s Agents Are Not Free, You Pay Dearly For Them

I’m in the middle of helping my parents sell my grandmother’s house, which is the first time I’ve ever gotten to see the frustratingly inefficient real estate market up close. I made a Zillow and craigslist page for the home last week and placed a for sale by owner sign out front, but to no avail so far. While it’s only been a week since we put it up online, I’m being advised by many friends in the industry that I need to bite the bullet and list the house on a flat fee MLS service. This allows for home buyers represented by a buyer’s agent to see the home on the list of local homes for sale in the area. However, the real reason I need to list the house on the MLS service is less benign. Despite widespread misinformation, buyer’s agents are not free. Continue reading “Buyer’s Agents Are Not Free, You Pay Dearly For Them”

Introducing Millennial Moola’s Irreverent Little Brother, Wealthy Walnut

When I wrote that I was tired of being poor and was going back to work to drive luxury cars and live in a 12 foot ceiling apartment, I recognized a huge market need out there existed that was not being fulfilled. That April Fool’s Day post received the most traffic in Millennial Moola history. Screw learning how to save millions of dollars on a five figure salary, payoff giant student loan debt, retire in six years, or pay a fair price for a ripoff like most financial advice, give me funny photos and make silly comments about them dang it! Continue reading “Introducing Millennial Moola’s Irreverent Little Brother, Wealthy Walnut”

Pay Down All Your Debt First Before Investing a Cent in Bonds

One of my best friends at work performed investment research for the company where we worked. I got to know him really well, to the point that we would exercise together, play basketball, and go to church. At some point, he became comfortable enough around me to share his financial picture. He had student loans with 6% interest, but he also owned the PIMCO bond ETF, which paid about 2% a year in interest before taxes. He had set up a negative arbitrage situation of -4% a year guaranteed! If a highly certified investment expert made this mistake, you will probably make it too because portfolio models never include the negative bonds you already hold in the form of loans. Pay down all your debt before making a single bond market investment. Continue reading “Pay Down All Your Debt First Before Investing a Cent in Bonds”

Should I Invest in a Brewery?

Readers, if you have a question that you’d like featured in Millennial Moola, email me at [email protected]. This fantastic question comes from Jack in Florida: Continue reading “Should I Invest in a Brewery?”

Friends Don’t Let Friends Work Dead-End Corporate Jobs

The Franklin Institute in Philly is one of my favorite museums anywhere. Still, I didn’t expect it to give me the perfect photo to describe working in dead-end corporate jobs. Sorry to drop this article right after July 4th. Unfortunately, a majority of Americans, 52% in fact, are unhappy at work. Maybe it’s because they realize there is no possibility for promotion in their position or that working in corporate America is bland and unexciting. So many people work for a paycheck rather than for passion. I would be a terrible friend if I did not ask you to do a gut check right now. Do you love what you do? If so, awesome, if not, keep reading. Continue reading “Friends Don’t Let Friends Work Dead-End Corporate Jobs”

When Was the Last Time I Paid For a Haircut?

Sometime in my junior year of college is when my frugality muscles really started bulging. That year I lived in a church (it had apartments in it) and paid almost nothing for rent in exchange with helping out with activities. I lived close to a Wal-Mart, where I shopped often of course. While I perused the aisles one day, I found a Conair hair cutting set for $30 and bought it. My idea was that if I cut my own hair three times then I basically paid for the set. After all, it came with an electric razor too, which I needed anyway. Little did I know that I would become a lifetime personal barber. I cannot even remember the last time I paid for a haircut. Continue reading “When Was the Last Time I Paid For a Haircut?”