The mother of all reverse compounding problems

The only proven way to achieve a passive double-digit yield to replace your income is to own businesses – either directly or indirectly through common stock ownership. But this creates a challenge. The chart shows each of the bear market declines since the end of World War One. We are in the tenth decade and there have been twenty bear …

Problems with Viatical and Life Settlements

UPDATED 2019: This article, originally published in 2008, continues to be one of our most popular posts. Please keep in mind that it is possible some of the facts offered have changed throughout the years, but our sentiments about this topic have not.  I have received several questions in recent weeks asking for my opinion on a life settlements. Rather …

Know Your Greatest Risk

What is your most valuable asset? Your business? Your house? Your investment portfolio? The pile of gold buried in your backyard? What would you guess? If you guessed anything tangible, you guessed wrong. Your most valuable asset is what economists call your human capital. This is the sum total of the skills knowledge and wisdom you possess which you then …

Annuities: Fixed or Variable, Immediate or Deferred?

I began questioning how many people understand the difference between different types of annuities after I received an email this week from one of my Snider Investment Method™ Workshop graduates. Annuities come in a thousand different flavors and colors. No two are exactly alike. I think most people lump them together without understanding the difference. Or maybe they just think …

The Power of a Portfolio Paycheck

Suppose I buy a diversified portfolio of stocks hoping that over time they will increase in value so I can sell them. Until that happens, and I have consummated the sale, I have not made one thin dime. So, until that happens, I sit and I sweat. I worry about interest rates, the dollar, the economy, the possibility of terrorism. …