Most of my capital is invested in stocks. You can see my portfolio here. I keep some cash as rainy-day fund and also for my dry-powder strategy. In today’s low-rate environment, cash does not return much. Short-duration CDs yield 1% to 1.5%. One-year treasury bonds return … [Read more...] about Get more out of your cash
My Investing Journey
Chronicles my investing actions - past and present
Long-term investors face inevitable bear markets. Stocks may go down 20%, 30%, or occasionally even 40% - 50% before recovering. Bear markets last from six months to two years but it takes longer for stocks to recover to their previous peak prices. As an investor, I have gone … [Read more...] about I use cash as dry powder
I do some tax planning every year – usually in December. It is a yearly ritual that I am accustomed to. Fortunately, my taxes have not been very complicated since, most of my working years, I didn’t have any business income. So, no large business expense deductions, asset … [Read more...] about My year-end tax moves
Last week, I heard two of my friends talk about an impending market crash. One of them told me he has been doing well in the stock market since he invested in the beginning of this year. But he does not think that the market will stay at these lofty levels for too long. The other … [Read more...] about Why I stay invested in stocks?
I worked for one Fortune 100 company for a bit more than 20 years. I had an active 401(K) retirement account while I was working for it. I saved and invested a portion of my earnings every year—taking advantage of company matching dollars and tax-deferred savings. What follows is … [Read more...] about My 401(K) story – from 1992 to 2012
When you buy corporate bonds, you are told how much interest you will get and for how long. Your expected returns are spelled out by the company issuing the bonds. If you hold these bonds until they mature, you will get your initial investment back. There are risks, of course. … [Read more...] about When stocks turn into perpetual bonds