2 Engineers, 1 website.

 

Financial Jiu Jitsu will teach you how to gain leverage in the real world, step by step, until you are confident you no longer need more.

Are Markets too Good?

Are Markets too Good?

This is going to be a kind of redundant article given many of our recent articles covering this topic. I am basically going to call attention to how well the markets are doing and leave it at that. 

Here are some of our past articles calling attention to this phenomena:

  1. Benefits of Dollar cost averaging in peak market
  2. Reaping the benefits of investing: a Betterment story
  3. Don't ankle bite the stock market: You look silly

So basically we (meaning you too I hope) have been having an exciting rebound in pretty much every financial market that matters. Is that cool or what? I gotta tell you, it's pretty cool if you had money invested before the surge. Alternatively, I bet it's pretty lame if you are sitting on the sidelines watching the winning team do a victory lap. 

If you do happen to find yourself just entering the financial world either because you just graduated college or you got a divorce or something, I wrote yet another article outlining what you should be doing even if you only have a little bit on money, say 5,000$ or so. Here it is:

So if you still aren't doing anything I am really running out of ways to motivate you. Yes it is easy to justify not investing when the markets are high or low, gaining or losing value, whether it's raining or sunny, and many other arbitrary observations. 

The thing is, the greatest factor is time in the market. The sooner you get in, the better off you will be. Don't worry about timing the market just get your feet wet. Even if you invested a ton of money at the worst time possible in 2007/2008 you would still be making money. Don't believe me? Check out the 10 year return on the DJIA:

literally the worst time to buy. And you would still have made a killing by now. 

literally the worst time to buy. And you would still have made a killing by now. 

Market always moves up and to the right. If we enter a parallel universe where it starts going the other direction then I guess you can reverse your dollar cost averaging method, but in the meantime it's full speed ahead. 

Here is a recap of what would have happened if you invested some money a year ago into a DJIA tracking fund at some random financial place. Like Betterment for instance:

18% y-o-y

18% y-o-y

Not too shabby right? To put that into perspective, if you invested 10,000$ you would have made 1,841$ for doing absolutely nothing for a year. All you needed to do was not spend that 10k. Sounds easy right? And it should be.

Ok so if the stock market isn't your thing I get that. You want something tangible. Well here is what would have happened if you bought a house over the last 5 years even in a non-market-leading location like San Jose, CA:

Geez imagine Frisco. Im not even going to look it up yeesh.

Geez imagine Frisco. Im not even going to look it up yeesh.

Alright if I still don't have you convinced to set some money aside and invest it, then I probably never will. I don't even know why you are dreaming of financial freedom and can't even get your toes wet in the pool of investing and start it poppin' off.  Stop dreaming and go get it: no more excuses!!

ddave
Capitalize On This Generations Lack of Focus

Capitalize On This Generations Lack of Focus

The Inverse Relationship Between Salary and Self Employment

The Inverse Relationship Between Salary and Self Employment