Increasing Net Worth

Posts on ways to reduce investment risk, how to hire a wealth manager or financial advisor, wealth building steps,  startup investing, small business investing, advanced investment strategies, alternative investing strategies to build wealth and make living off investments possible after retirement.

Reducing Risk in Stocks | 13 Lessons from Past Bear Markets

After surviving a few bear markets over the past 40 years as an investor, I’ve learned many lessons from them.   Reducing risk in stocks before bear markets take full hold helps investors protect their net worth as well as have capital to invest in stocks again once unusually low valuations are reached.  This sounds almost too obvious to write, but most investors don’t take …

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Are Dividends or Capital Gains Better?

You may have noticed that you’ve gotten both capital gains and dividends from investing. Are dividends or capital gains better? While I wouldn’t turn down either, dividends are better when you have decided to live off investments, and capital gains are better for building wealth. The Difference Between Capital Gains and Dividends While making money …

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Stocks That Went Up in 2008 | Plus ETFs, Bonds, Gold

Toward the end of bull markets, it’s smart to see what stocks went up in past bear markets for recession proof investment ideas. Stocks that went up in 2008 include Dollar Tree, Amgen, Hasbro, Dwight & Church, Celgene, Gilead, Walmart, McDonald’s, Ross Stores, Budweiser, AutoZone and H&R Block. Stocks going up while the market is …

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What Goes Up When Stocks Go Down? 7 Hedging Assets

One of the best ways to lower stock market risk is by owning assets that go up when stocks go down. What goes up when stocks go down? Treasury bonds and gold are the sectors that go up when stocks go down most often but there are a few more possibilities. During bull markets, it’s …

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How Do Covered Calls Work?

  You may have heard that selling covered calls can increase earnings from stocks.   How do covered calls work exactly? Covered call writing is a strategy where a stock investor sells call options that give the call option buyer the right to buy the stock from the stock investor at a set price and within a certain …

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How to Buy Assets That Generate Income

If you’re approaching retirement, that anticipated time when you can live off investments or at least work fewer hours own your schedule, you’re probably transitioning to income investing. You may be wondering how to buy assets that generate income. The way you buy income generating assets depends on the type of asset you’re buying. For example, …

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Problem - Solution

Problems with Covered Calls

Covered calls can be an excellent way to increase income from stocks but like all investments, covered calls aren’t perfect. The problems with covered calls include stock market risk, company risk, high capital, missing capital gains, taxes, and management. It is my belief that the benefits far outweigh the problems with covered calls for income …

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retirement nestegg | Are covered calls a good strategy

Are Covered Calls a Good Strategy?

In this time of low dividend yields, increasing stock income by selling call options on stocks you already own sounds pretty appealing to yield hungry investors. Are covered calls a good strategy? Selling covered calls increases income significantly while decreasing risk making them an excellent income strategy for stock investors.  In fact, you can add …

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How Many Income Streams Should You Have? [Videos]

The more income streams you have the better, right? This is not necessarily true. How many income streams should you have then? The answer depends on your goals, available time, types of income streams, available capital, taxes, demonstrated success, income reliability, and desired lifestyle. In this post I’ll share what I’ve learned in each of …

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Risk Reward | Start a Business or Invest in Stocks

Start a Business or Invest in Stocks: Which Is Better?

It can be challenging to choose the best opportunity to use your capital when you have money to invest. If you’re wondering if you should start a business or invest in stocks, the major considerations are the 3 elements of time, potential return, capital, skills needed and risk.   Over 15 years ago we wondered …

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How to Increase Net Worth Before Retirement [Videos]

Most advice for how to increase net worth is geared toward investors with decades to save and compound wealth in the stock market. If you’re an investor over 50, it could be too late for that strategy before retirement. But you can increase net worth by taking advantage of cycles in stocks or real estate, …

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What Are the Risks of Bonds? Chart Stocks Vs Bonds

  Updated August 8, 2019 Investing in bonds definitely has risks, contrary to what many investors think. Just what are the risk of bond investments? They include interest rate risk, default risk, inflation risk, call risk and economic risk. The fact that bonds are used to offset risk from stocks, and the very long bull …

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Playing Catch Up Retirement Savings | 59 Uncommon Solutions [With Videos]

If you’re playing catch up retirement savings, here are 59 wealth building tips and solutions that can radically change late retirement planning. After personally making thousands of investments among stocks, bonds, funds, and real estate, both with and without financial advisors over the past 40 years, and creating alternative income streams  to replace career income …

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How to Evaluate an Investment

Are you considering a new investment or evaluating investments that you already own? While there are some complex analysis tools, some of the best ways to evaluate an investment are based on simple and practical assessments. The criteria for evaluating an investment include meeting acceptable risk, goals, valuation, time frame, objectives, cost, and other assessments …

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How to Avoid Problems When Hiring a Financial Advisor

If you’re thinking of hiring a financial advisor, you may be wondering what unexpected problems you might face after you start working with him.   Research shows some of the more common unforeseen problems after hiring a financial advisor come from higher than anticipated fees, poor customer service, lack of personalized service, poor investment track …

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How to Understand Your Investments (Investing 101, Lingo Free)

Investing can seem very complicated if you’re not familiar with all the financial lingo. If you’re wondering how to understand your investments, these 3 steps will get you well on your way. Your money is divided among into stocks, bonds and cash type investments based on your goals, desired risk and time frame. The stocks …

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Should You Manage Your Own Money (With Time and Cost Comparisons)

You may be at a point where you’re wondering if you should manage your own money or hire a financial advisor. After using several financial advisors, and also managing my own money over the years, I learned that there are some good reasons to invest yourself. This includes lower costs, alternative investing, overall returns and …

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Wealth Building After 50 (No Penny Pinching and a Bit of a Rant)

Most articles about wealth building after 50 have tips with a minimal impact on true financial independence. If you’re over 50 and far short of reaching your big retirement number, it’s time to take some serious steps beyond investing pocket change and cutting out lattes. While these aren’t bad ideas, they ’re not going to …

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Pros and Cons of Using a Financial Advisor (with Cost Charts vs DIY)

When feeling uncertain or overwhelmed about managing your investments, you may consider hiring a financial advisor. I manage our own investments now. But over the decades I have hired and worked with 10 different financial advisors of various types. Despite the many pros and cons, the most important consideration in using a financial advisor, or …

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How to Invest in Startups for Individuals

Imagine if you were one of the very first investors in Facebook, Apple or Uber. If this seems crazy,  remember that every company needs startup capital, and individual investors can now participate in startup funding easier than ever. Investing in startups for individuals now has many options, including online startup companies that match investors with …

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How to Know If the Stock Market Will Go Up or Down

The closer you get to retirement, the more important it becomes to avoid nasty, major stock market moves down, and capture those lucrative stock market moves up. But maybe you’re wondering how to know if the stock market will go up or down over the next few years with a higher degree of likelihood? While it …

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33 Wealth Building Steps That Will Shape Your Destiny

There is wealth building, and there is wealth keeping. Both matter. In this post, you’ll get 33 wealth building steps that are useful if you want to accumulate more wealth from any level, and to feel more in control of your financial destiny. My financial coaching clients often think the answer to building wealth will …

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How Will a Stock Market Crash Affect You? [Infographic + Video]

Investing in the stock market can be unsettling, especially after stock prices have climbed sky high. At any given time, I ask myself “How will a stock market crash affect me?” To get a very reasonable estimate for how much my net worth will decline in the next stock market crash I do this simple …

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How Much Of My Net Worth Should Be in Cash (Liquid Net Worth, Cash Percentage)

Updated May 29, 2019 Deciding how much of your net worth to keep in cash is a huge part of managing risk while building wealth. The simple formula to figure how much of your net worth should be in cash is the amount you need to cover all your monthly expenses multiplied by the number …

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10 Ways to Reduce Investment Risk While Building Wealth

Updated 5-28-19 Do you worry about losing your money? Here are 10 ways to reduce investment risk so you can sleep better at night while still journeying toward your financial goals. While it may seem like you have to be an advanced investor to lower risk, these practical ways to lower investment risk are simple …

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Investment Strategies A High Net Worth Advisor Uses To Lower Risk

Are you wondering what investment strategies you can use to lower your risk while increasing your returns? In this post, I’ll share five investment strategies that one of the top financial advisors uses to build wealth safely for his clients while also generating income. Many years ago, my dad taught me to investigate where and …

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