Tag: passive income

Get Rich Slowly By Following Vanguard’s Bogleheads

Bogle,?NOT Boggle

You probably have good reasons for not investing in the stock market. For example, lack of knowledge, fear of losing money, a general mistrust of brokers and advisors and not having enough money to invest. On top of that, most of you probably didn’t have parents who taught their kids the importance of investing at an early age.

I was lucky.? Both of my parents are in financial services and?taught me the importance of working and saving money. However, anyone can learn good financial habits and it’s never too late to get started.

Related: Why Your $78 Hoodie Actually Costs $3,168

One of the best things my mom has done for me is introduce me to the Bogleheads and their book,?The Bogleheads Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf.? Last year my mom and I attended their annual financial conference.?As a sixteen year old, I was the youngest person attending.

What’s a Boglehead? The Bogleheads are a group of people just like you and me who have an interest in investing and like to follow the principles of Vanguard founder, John C. Bogle.??The Bogleheads have an online forum at Bogleheads.org where investors share ideas. Each year they hold a conference where the Bogleheads meet and talk to well-known financial figures.

Benefits of passive investing

The first lesson I learned is that you don?t have to be Warren Buffett to be a great investor. The Bogleheads emphasized that you do not have to spend hours and hours trying to identify the stocks that will consistently beat the market.? They encourage a strategy of passive investing rather than active investing.

…even Warren Buffet has instructed that after his death, his wife?s estate should be put into passive investments like index funds.

In fact, day trading (aka actively buying and selling stocks) leads to losing money 80% of the time according to one study.? The Bogleheads caution against being an emotional investor because this leads to making too many changes and poor investment returns in the long run.?Mr. Bogle recommends investing in a diverse portfolio and investing in low-cost index funds. For example, the Vanguard Total Stock Market Index Fund (VTI). [Editor’s note: we are not paid by Vanguard. They’re just a great, not-for-profit company and the pioneers of low cost passive index investing].? There are plenty of other index funds by different companies that one can invest in as well.

Related: Forget Retirement – Here’s Why You Need To Start Investing Now

If you doubt that you can beat the vast majority of active investors, while only spending a few hours a year doing it, The Little Book of Common Sense Investing, by Jack Bogle, explains the strategy and statistical evidence to back up his advice. Jack Bogle mentioned that even Warren Buffet has instructed that after his death, his wife?s estate should be put into passive investments like index funds.

A fun way to teach kids about investing

One of the topics Bogleheads discussed was how to get the younger generation–my generation–interested in personal finance and investing.??The Bogleheads panel of experts expressed their concern that the younger generation doesn?t seem to care about finance.??Jonathan Clements, a member of the panel who is the creator of the HumbleDollar blog, talked about how some of his kids? friends are finishing college and taking a year to travel the world, then returning to be Starbucks baristas, with little hope of paying off their college debt quickly.

Parents can do a lot to get their children interested in investing.? For example, parents can take their young kids into a store like Starbucks and show them a cup of coffee. Then explain that when someone buys a cup of coffee from Starbucks, the people who have invested in Starbucks will make money. Consider buying a share of a company like Apple, Starbucks, or any company that produces products that your child uses.
This can also be an opportunity to show your kids that they can vote with their wallet?by supporting companies whose values align with their own.? For example, instead of buying a bottle of shampoo that is produced by a company that is bad for the environment, kids can buy bottles of shampoo that are produced by eco-friendly companies.??I think that it would be great if parents taught their children about basic investing principles like these so that their children have an incentive to make money through investing.

Being a conscious consumer builds good money habits

The conference isn?t only about investing. There was a lot of discussion about personal finance and how to be a smart consumer.?The Bogleheads encourage being careful with expenses and not wasting money. They even recycle the plastic name badges they use at the conference each year.??They emphasize allocating a meaningful amount of your monthly income each month toward saving.???It’s never too late (or too soon) to start building your financial well-being.

The conference as a whole was incredibly entertaining, educational, and a valuable experience. While I highly recommend attending the conference if you can, I recognize this may not be possible for everyone. Check out https://www.bogleheads.org/ and read the books that I mentioned. These are amazing resources and you will gain so much valuable information. Happy investing!

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This Company Helps Empty Nesters Earn Passive Income

The Boomer Retirement Wave is Coming

There are 10,000 baby boomers reaching retirement age every day in the United States. The average American couple over 55 has less than $125,000 in their retirement account. Even with social security, these funds are not nearly enough to cover living expenses, let alone the increasing cost of healthcare. Couples over 65 will spend an average $275,000 in out of pocket medical expenses. The good news? Home sharing is a widely accessible tool for creating passive income.?

How Home Sharing Can Help

Have you ever heard of intergenerational home sharing? Europe has been doing this for years with great success. Here’s the basic idea: older folks looking to stay in their homes are paired with younger people looking for a place to live. There are benefits for both sides.

Silvernest?is a home sharing platform designed for empty nesters. It takes all of the hassle and risk involved with finding housemates out of the process. Their matching engine connects you with people that fit your specific criteria.

Benefits of Home Sharing for People and Planet

  1. Helps empty nesters and retirees stay in their community and homes.?That means they can continue to enjoy the coffee shops, parks and?friends and family that they know and love.
  2. Helps create new passive income (this becomes especially important in retirement).
  3. Helps people find housing while benefiting from the wisdom of our older generations.
  4. Sharing a home is one of the best things you can do to lower your carbon footprint. The less space, electricity and other resources you use, the better it is for the planet.

?Silvernest provided me with a great housemate match? he is close to my age and we get along very well. Using this system was less stressful than my previous attempts at finding a housemate. Sharing my home eases my economic worries and I enjoy the companionship.???-John Oswald, NYC, Silvernest Homeowner

Why This Platform Works

Silvernest?simplifies the whole process of home sharing.

  1. It’s easy to create a profile and listing.
  2. Their matching engine enables home owners to specify their ideal housemate.?
  3. They offer background checks, leases and automated rent payment. Basically, they take care of the process from beginning to end.

Finding the Human Connection You Want

The great thing about their matching engine is that you can specify housemate criteria. That means you can decide whether you’d someone who will join you for meals, tv, games etc. Or, if you are simply looking to fill the space and stay largely independent, you can do that, too.?

Their housemate matching engine lets you specify criteria such as pets, smoking, faith, work schedule and age preference.

Whether you are looking for companionship, passive income, or a way to stay in your home and community, this could be a good option to consider.

Looking for more ideas on how to make extra income using your house? Check out out article 7 Ways to Make your Home a Sustainable Source of Income .

Photo by Jason Chen

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