In Plus Episode 359, we calculate how much of the Simplify Interest Rate Hedge ETF (PFIX) to purchase in order to protect against rising interest rates. We also look at how purchasing deep-in-the money call options is a way to get cheap leverage to magnify the returns of a specific index or asset. … [Read more...]
350 Plus: Taking Out a Home Mortgage to Invest, Tax Loss Harvesting, and TIPS
In Plus Episode 350, we compare reverse mortgages to home equity loans. What to consider when deciding to take a home mortgage to invest in other assets. We look at tax principles when it comes to investing and explore how tax-loss harvesting works. Finally, we review the pricing of Treasury Inflation Protection Securities and how to estimate their returns. … [Read more...]
314: How to Not Have a Lost Decade
What are four principles individuals can follow to achieve their financial and career goals this decade despite the rough start in 2020. Topics covered include: Why we have to be willing to share our journey with others so that they are vested in our storyWhy it's important to focus on areas where we have momentumHow to prudently use leverage in order to build an assetThe importance of urgency, hope, and putting on an event so that we can achieve our business goalsHow asset allocation … [Read more...]
283: Why You Should Care About Carry Trades
How investors make money with carry trades, how central banks encourage such trades, and what are the dangers to financial markets and the economy when carry trades get too big. What Is a Carry Trade? Carry trades are investments in which the investor collects an income stream “as long as nothing happens,” as Tim Lee, Jaime Lee and Kevin Coldiron describe in their book The Rise of Carry. By nothing, the authors mean there is price stability in the underlying asset on which the carry … [Read more...]
MNY121 Plus: Indexing and the Use of Leverage When Investing
This week on Money For the Rest of Us Plus we look at potential indicators for when indexing reaches a tipping point in that it has gotten too popular and active management makes more sense. We also look at the prudent use of leverage when investing including when buying a home. Finally, we review the impact on Doubleline Total Return Bond fund of the passing of one of their senior investment professionals. The episode length is 18 minutes. … [Read more...]
