:::Issue #1. Why are you receiving this? You want to be in a good place. This is where I share educational content and practical tips on personal finance, so you can get to your good place, wherever that maybe:::
đđŒ Hello wealth builders!
Welcome to the first issue of the hellogoodplace newsletter.
What Iâve been up to:
đ» Newsletter she·nan·i·gans - this took way longer than I thought, but where never starting is the real fail, seems like this is a big step. Thank you for taking this journey with me. Expect to receive a new issue on the 5th of every month going forward.
(@visualvalue)
đ§ Year of learning - I give myself a travel budget every year to visit my family in New York, LA, and Seoul. I also find that there is no comparable experience of visiting a new country. The pandemic has made travel difficult this year, but that hasnât stopped me from traveling with my mind. Itâs been an incredible year of learning online, starting with David Perellâs online writing workshop called Write of Passage, to Tiago Forteâs note taking workshop called Building a Second Brain. I am on my third class this year with Robbie Crabtree on Performative Speaking. Each class introduced me to a new world, and itâs been my biggest year of growth yet.
Stock Market & Elections
Presidential elections bring uncertainty, and the stock market does not like uncertainty. Itâs normal to see an increase in stock market volatility during elections, and itâs totally natural to be nervous as an investor.
Four years ago, I got a text from my boss at midnight asking me to be in the office at 6am as we see the stock market tanking as a Trump presidency solidified. âExpertsâ said that the stock market would crash if Donald Trump was elected president - and they were right, at least for a few hours. By the time I got into the office, the markets had calmed down and snapped back to where they started.
Fast-forward to 2020, these so called âexpertsâ again predicted that the stock market would crash, but this time if Joe Biden won the presidency. Results are too close to call at this point, but the market is predicting a Biden presidency and surging.
I would sound like a mad man if I told you that I can predict the future. But for some reason, investors feel that they can predict the stock market. The bad news is that stock markets are impossible to predict, and numerous studies support this claim.
The good news is that you donât have to be a psychic to do well with stocks. All you need is discipline, a diversified basket of stocks, and time for compounding, because the stock market has done just fine regardless of who sits in the White House.
Donât let âexpertsâ sucker you into an impulsive reaction. It is likely to hurt you more than help you.
MBR (Mega Backdoor Roth)
MBR, or Mega Backdoor Roth contributions are the hottest benefits offered by Silicon Valley tech companies right now. It allows high earners to contribute an extra $30,000+ to their Roth 401(k) or Roth IRA, that can have the potential to save hundreds of thousands of dollars in tax over time.
For details, check out my latest blog post, The Fabulous MBR or Episode 3 of my Money Monday (MM) video series. If you are new to 401(k)s and need some background information first, make sure to read Retire earlier with a 401(k)first, or MM Episode 1 and MM Episode 2.
To being in a good place,
Daniel