Category: Technical Investors
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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Building a 50/30/20 Portfolio as a Boglehead Investor
One of the most common frameworks in personal finance is the 50/30/20 budget rule: 50% of income goes toward needs, 30% toward wants, and 20% toward savings. But what if you flipped that logic and used it as a way to structure your investment portfolio? That’s where the 50/30/20 portfolio comes in. As a Boglehead-style…
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Building a 50/30/20 Portfolio at a $100K Net Worth
Reaching a six-figure net worth is a milestone that reshapes how many people view their financial future. At $100,000, compounding begins to feel tangible: a seven percent annual return translates to $7,000 in growth without any new contributions. Allocation suddenly matters more than the pace of saving, and how you divide your portfolio will influence…
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Municipal Bond Yield to Maturity (YTM) & De Minimis Rule Calculator
Municipal Bond Calculator: This free Municipal Bond Calculator will estimate a bond’s return if held to maturity and instantly check the IRS de minimis market discount rule. The tool computes years and periods to maturity and flags whether the bond’s discount is within or above the de minimis threshold, helping you understand if any market…
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Reducing Your Portfolio Beta with Private Credit
In today’s incredibly volatile markets, finding ways to reduce your portfolio’s overall risk without sacrificing returns remains a top priority for investors. Private credit has emerged as a compelling option to achieve this balance, offering potentially attractive yields with lower correlation to public markets. Adding a strategic allocation to private credit can meaningfully reduce your…
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3 Reasons Why Illiquid Assets Can Be Good for Your Overall Portfolio
In today’s investment landscape, portfolio diversification extends beyond traditional stocks and bonds. Many investors overlook the potential benefits of adding illiquid assets in private markets to their financial strategy. These investments, which cannot be quickly converted to cash without potential loss of value, offer unique advantages worth considering. Illiquid assets can help diversify your portfolio…
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How to Understand Credit Spreads in Bonds?
In the complex world of financial markets, credit spreads serve as crucial indicators of risk perception and economic health. When you examine credit spreads, you’re looking at the difference in yield between two debt securities with similar maturity dates but different credit ratings. Credit spreads represent the additional yield investors demand as compensation for taking…
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How to Structure a Portfolio of Alternative Assets (+$50M)
We previously covered JP Morgan’s analysis of family office portfolios, and they showed that on average, the wealthiest families invest 50% of their entire portfolio in alternative assets. So many aspire to build their wealth to be like these families, having tens or even hundreds of millions of dollars in assets, but wonder how they…
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What Is Credit Default Risk and How Can You Mitigate It In Your Portfolio?
Credit default risk is a crucial concept for anyone involved in lending or investing. It refers to the chance that a borrower won’t be able to make the required payments on their debt obligations. This failure to pay can affect the investor or lender’s financial health and decision-making process. Understanding this risk can help you…
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What Does Hurdle Rate Mean?
Understanding financial terms can be challenging, but it’s crucial for making informed investment decisions. The hurdle rate is the minimum rate of return that an investor expects to earn when deciding if an investment or project is worth pursuing, or if resources should be allocated elsewhere. For businesses, setting an accurate hurdle rate ensures that…
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How Does Option Wheeling Work?
Understanding “Option Wheeling” can be tricky, but it doesn’t have to be. This strategy involves selling put options to possibly buy stocks at a lower price. Once you own the stocks, you sell call options to generate income. This cycle continues, creating a wheel of potential profit. Option wheeling allows you to earn income from…