I recently started reading 1500days.com - If you're not familiar with this guy, he basically describes his story as this:
"My main goal* was to build an investment and cash portfolio of $1,120,000* in 1500 days**, starting from 1/1/2013 and ending in February of 2017. I made my goal in 2016, my 1500 Days are over, and I’ve left my job." Mr. 1500 still blogs regularly to teach people how he maintains his lifestyle now that he's retired. Recently he posted how he lost a lot of money (on paper) due to the recent downturn in Facebook stock. It's a great example of the importance of not only diversifying your stock portfolio, but even your streams of income. Our opinion is that you have money in stocks, and real estate (REITS and physical single family homes). If you're really lucky, maybe you have a side business or partnership as well, that brings in a third income stream. Having a few income streams allows you to have some more risky bets like catching the upside when things go well in the stock market, but also a pile of more stable money to minimize losses so you can still pay the electric bill even in the worse months. Read about Mr. 1500's Facebook loss here. Comments are closed.
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StpChgWelcome to StepChange (StpChg). A blog about personal finance, small business, and investing. Looking for the real estate blog Knew Home? Archives
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