retirebyforty

Early Retirement Myths Busted

08.22.2014
Early Retirement Myths Busted

Oh man, I am worn out. This summer has been hectic for the RB40 household. We traveled to Hawaii, camped at the beach, and took a road trip to Boise. We also kept getting sick for some reason. It seems like we’ve been sick for over a month now. We all had a cold and it went round and round. Mrs. RB40 just got diagnosed with shingles and won’t recover completely for another few weeks! And this morning, RB40 Jr.’s back broke out in itchy hives. Oh no! We dodged a bullet on that one, though. The hives disappeared about […]

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Our Suboptimal Duplex Investment

08.20.2014
Our Suboptimal Duplex Investment

As some readers may know, we sold our rental home and 4plex earlier this year. Of course, I’m addicted to investing so I couldn’t leave well enough alone and invested in a duplex soon after. I’m a bit reluctant to talk about the duplex investment because it’s definitely not the best investment we could have made. First let’s go over why I decided to invest in a duplex, then see the pros and cons, and lastly crunch the numbers. Why invest in a duplex So I’ve complained in the past that I’m not cut out to be a landlord. So why […]

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What does it mean to own bond mutual funds in your retirement account?

08.18.2014

Today, we have an article from Roy, one of our regular readers, who is an expert in fixed income (bonds.) This is great because I really don’t know much about bonds. I know I’m lending money out and I’ll get some interest. I know I need to allocate 20% of my investment asset in bonds according to my risk tolerance. I read that’s it’s a good idea to avoid long-term bonds for now because the interest rate is bound to go up at some point and drive the bond funds price down. So currently, I have 20% of my investment portfolio in […]

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Passive Income Made Easier

08.15.2014
Passive Income Made Easier

Last time, we talked about how difficult it is to retire early via passive income. In fact, it is probably impossible for regular people who regularly save 10-15% of their salary. That’s not nearly enough to generate the passive income to sustain their lifestyle. The comments on the previous articles are also great and help distilled why it is so difficult to retire with passive income.  Let’s do a quick recap on the most important points. The return on investment is low. Dividend stocks, bonds, CDs, and other financial instruments return 1% to 5% on investment. You’d need a huge […]

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