Monte Carlo or Bust

I have been looking at some Monte Carlo simulations this week. For those unfamiliar with them, they allow you to take your portfolio and input factors such as withdrawal rates, inflation and portfolio make up. The software then runs something like 10,000 scenarios and gives you an idea as to whether your portfolio will run out before you do.

Continue reading

Posted in investing | 1 Comment

FIRE Life : The Pros and Cons

The two questions/comments we are asked most often are, “Wow, you are so lucky” and “What do you do all day, don’t you get bored?”

Continue reading

Posted in Steve, Uncategorized | 3 Comments

Mitigating Risk

As mentioned a couple of weeks back the best way of spreading risk within a stock portfolio is to buy an index fund, which will likely contain several hundred stocks and track an index such as the S&P 500.

However you will still have an all-stock portfolio, which is very risky. So how do you reduce that risk even further?

Continue reading

Posted in investing, Steve | 8 Comments

Brain Games

For me, one of the difficulties of retirement is keeping my brain active. In my past life (i.e. when I worked) I struggled at least once a day on some sort of problem that required both knowledge and logic to figure out, but now I require neither. I can almost feel the little grey cells decaying each day so I’ve got to try and find things to help them grow – like Sudoku, or the New York Times Crossword, or a cryptic crossword (OK – I can never get the cryptic crossword), logic problems, etc. Pub Quizzes are more engaging and the beer an exceptional compliment to the experience.

Continue reading

Posted in Tuffy, Uncategorized | Leave a comment

September Financial Update

We are into October already! Last quarter of the year, so I thought it would be a good idea to see how the market did in the last month and quarter and also how we did.

Continue reading

Posted in investing, Steve, Uncategorized | 4 Comments

Active vs Passive Fund Management

When investing money you have a choice you can have it invested actively or passively.

Active management means handing your money over to an investment or fund manager who will routinely buy and sell individual stocks in order to hopefully produce superior results.

Conversely passive management involves investing usually in an index tracker fund (such as the S&P 500) and leaving it. Although there is a manager looking over it, it is more for book keeping purposes as there is little active trading of the money.

Lets look at the two styles in more detail.

Continue reading

Posted in investing, Steve | 2 Comments

Driving You Crazy

Houston gets a bad rep from the other states. Yes, it is roasting hot and humid in the summer, it gets hurricanes and floods a lot, many people have guns, the highest non-building point in the city is probably a freeway, and the drivers are all utterly insane.

Continue reading

Posted in Transportation, Tuffy, Uncategorized | 4 Comments

Buses, Trains and Automobiles

Is it practical to live without a car? Could someone looking to live a thrifty FIRE lifestyle make a massive cut in their expenses by surviving only on the public transportation network?

Continue reading

Posted in Uncategorized | 2 Comments

Good Debt, Bad Debt

When we moved from Houston to Portland, we made a conscious decision to use the money from selling our house in order to buy outright once we found the right place. We did this for two reasons.

Continue reading

Posted in Uncategorized | 3 Comments

Back to the Fold

“So tell me, what are you doing all day?”  That’s what Elaine asked me.  I stumbled a bit because, honestly, I’m a little embarrassed that I am not doing more.  Now that I’m over the initial milestones (catching up on sleep, reading, and cleaning) there is a plethora of time before me and, at the moment, I am wasting this most precious commodity.

Continue reading

Posted in geology, Tuffy | 4 Comments