Monday Links 05.16.16 – Two Job Offers, Millennials and Home Buying

Torn between two offers… Having two jobs to decide between is a good problem. You will likely end up having a mental game of tug-of-war with yourself. It’s not an easy decision. No matter what you decide, you may end up with buyers remorse, no matter what you decide to do…  Decades ago, I needed to make a life-changing decision. Should I give up paradise and move to a less desirable location? I had a job offer with a start-up in Los Angeles. Should I stay with my tried-and-true employer, offering me a boring job in (San Diego) paradise or accept an interesting job in (Los Angeles) a less desirable city? When I received the offer, I asked my father what he thought. He asked me three questions: Does the job pay more? Is the company more stable? Is the industry more stable? The answer to all three questions was no. Regardless, I decided to give it a try. I stayed with that startup in LA for 23 years! The stable company folded five years later. Click the link above to see Mint’s questions to help you decide.

Robo Advisors Won’t Die as Fast as High Fee Human Advisors – Nice piece by a financial advisory firm comparing the performance of robo advisors and a basic three-fund portfolio.

courtesy of:

courtesy of:

Not surprisingly, the results are similar. The article goes on to suggest that more of these “automated” advisory companies are moving towards a hybrid of automated investing augmented by human financial advisors. May you don’t need a financial advisor. Regardless, it’s nice to see a book from a financial advisor discussing What Every Investor Needs to Understand About Money and Finance,Understanding the Modern Monetary System. I have not read this book, but it sounds like it’s worth a look.

Young people are not buying homes. Millennials — the largest group of potential first time home buyers today — are having a tough time buying a house. Roughly 33 percent  of these future first-time home-buyers indicated that their credit score could hurt their ability to buy a house, and nearly half — 45 percent — said they have delayed a home purchase so that they can improve their credit score, and 20 percent have elected to completely opt out of the home buying market place for the next five to 10 years.

You can be too pessimistic – In a recent article, David Merkel, a leading commentator at the excellent investment website, referenced an old book, Triumph of the Optimists. In it, there are a number of things that he believes should bias investors toward risk-bearing in the equity markets. Whether you choose to invest in individual stocks and bonds or simply purchase baskets (mutual funds, index funds, ETFs, etc.) of stocks and bonds, regardless, this information still applies. Here are a few which I felt were worth highlighting here:

  • Over the period 1900-2000, equities beat bonds, which beat cash in returns.
  • Long bonds returned more than short bonds, but with a lot more risk. High grade corporate bonds returned more on average, but again, with some severe downdrafts.
  • Value tends to beat growth over the long run.
  • Higher dividends tend to beat lower dividends.
  • Stocks will beat bonds over the long run, but in the short run, having some bonds makes sense.

When should you buy gas? You have probably seen articles suggesting the best days during the week to buy airline tickets. The St. Louis Federal Reserve has done research on which days are the best days to buy gas? Hint: It exactly what you might think. Spoiler alert:



Which airlines offer the best and worst frequent flier programs? Which one is the fastest ways to earn a free trip? Hint: jet

Owning investment property. Owning rental property is nice; it brings in passive income. But do you have what it takes to be a landlord? Me, I’ll still to REITs.



Photo by Royal New Zealand Navy

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