Adventures In Deep (Crypto) Space

Investing in digital - or crypto - currency is somewhat of a taboo in the FIRE community. Say Bitcoin and you are frowned upon. You want to be one of us?  Denounce your deeds of darkness! Repent your evil ways! Follow us on the true path to FIRE. I exaggerate. But we do pride ourselves on making … Continue reading Adventures In Deep (Crypto) Space

Time-Weighted Return

I've been struggling a bit with keeping track of the performance of my portfolio and specific assets and asset classes that I own. I am not an accountant. My initial approach to measuring performance was to take the difference between current portfolio or holding value (V), subtract the amount I invested (I) and divide the … Continue reading Time-Weighted Return

Returns, Dividend Or Interest?

I found that many people appear to gravitate towards 'safe income' producing assets, like dividend-paying stocks. A dividend strategy can generate a "permanent" (more or less) form of income which can either be reinvested to boost wealth or be consumed without really impacting already accumulated wealth. Opting for a dividend strategy as opposed to relying on … Continue reading Returns, Dividend Or Interest?

Early Retirement: Could A Bad Sequence Of Returns Annihilate Your Portfolio?

You had done all the right calculations. At least that's what you thought. And according to the math the accumulated invested capital was exactly what you needed to bridge the years from your early retirement until full pension age. Even the average return was very close to what you had used in your formula's. But … Continue reading Early Retirement: Could A Bad Sequence Of Returns Annihilate Your Portfolio?