The Sunday Best (8/05/2018)
The Sunday Best is a collection of articles I’ve curated for your reading pleasure.
Presenting, this week’s Sunday Best:
Guess what? I’m on ChooseFI! (again — see episode 26 for my first appearance). This time, I joined Jonathan and Brad for a case study with a non-traditional med student turned dermatologist who is about my age and fueled by FIRE. Have a listen to Episode 086 | A Live Case Study With Physician On FIRE and Allison Goddard.Marjorie Stiegler, MD feels you should Save Your Breath About Your Burnout.
Family first. That’s the theme that ties the post above to this two-part post from the physician behind Fifteen Minute Financial Fitness.
- The Reason I Want and Can’t Have Financial Independence are the Same, Part I
- The Reason I Want and Can’t Have Financial Independence are the Same, Part II
But just like anyone else, he can have financial independence if he’s patient. Ken from The Humble Penny is willing to help by jumping out at him when he least expects it! How Fear Can Help You Achieve Financial Independence.
Tj’s brother is more interested in fulfilling a $10 Million Dream than he is in attaining this mythical concept of financial independence. From Half Life Theory, My Millionaire Older Brother Thinks FI Principles are Dumb.
- Bonus material: A blogger reveals his identity! Taking off the Mask.
More bonus material: Another blogger reveals his identity! Will the Real Passive Income MD Please Stand Up? [please stand up… please stand up. I’m like a head trip to listen to…]
- PIMD a.k.a PKMD shared some insight on How to Turn Active Income Into Passive Income. Because Active Income MD doesn’t carry the same cachet.
Caroline Ceniza-Levine, a columnist for Forbes, Time, Money, and more is now an AirBNB host and blogger at Costa Rica FIRE. She’s discovered that Costa Rica Is The Perfect Location For The Freelance, ‘Gig Economy’ Worker. Yes, I’m packing my bags.Route to Retire is taking his family even further south, retiring early to Panama. His mother would prefer he stay closer to home. She asked him a hypothetical question: Would an Extra $5 Million Sway Your Plans? Would it sway yours?
Home. They say that’s where the heart is, and for many, that’s where a lot of their money is. But Is Your Home a Better Investment than the Stock Market? J.D. Roth of Get Rich Slowly shares some eye-popping numbers and graphs.
[Vanilla] ICE ICE Binder [too cold]
As I stated in one of my numerous tweets on the Legacy Binder put together by Chelsea Brennan of Mama Fish Saves, these things are flying off the virtual shelves, and you’d better get yours before the unlimited supply runs out!
While it may be true that it’s extremely difficult to run out of copies of a digital download, you can run out of time to get yours before the next price increase.
Based on how well they are selling, and the positive feedback she’s been getting, I expect the price to increase in the future Get yours here for $29 and you’ll not only be doing yourself and your family a favor, but you’ll also be supporting this site’s charitable mission.
Fidelity Funds are Free!
I didn’t even hear rumors about this one before this week, but Fidelity has announced two new mutual funds, a total stock market fund and an international stock market fund that will have a ZERO expense ratio. That’s correct: no fees. The funds themselves aren’t free to purchase — that would make no business sense, but you won’t incur ongoing fees.
Is this the greatest thing since sliced ticker tape? I don’t think it’s a bad thing — competition in this space has been driving fees down for decades. On the other hand, funds from Schwab and Vanguard are already really close to free with expense ratios as low as 0.03%.
Every 0.01% in fees on a million dollar portfolio costs $100 per year. However, in a taxable account, tax efficiency may prove to be more important than the 0.04% difference in cost between the new Fidelity funds and Vanguard’s equivalent funds.
Comparing the tax efficiency of Fidelity’s current Total Stock Market Offering with Vanguard’s using Morningstar’s comparison tools, you’ll see that Vanguard has consistently outperformed Fidelity in this category.
It may be that the new Fidelity fund is more tax-efficient than the old one. Either way, we’re talking about nearly identical returns with one company’s fund slightly cheaper and the other company’s fund slightly more tax-efficient.
One Treeeellion Dollars
Did you hear that Apple topped $1 Trillion in market capitalization? Of course you did. And they were the first company to do so. Sort of.
If you adjust for inflation, however, the Dutch East India Company was worth over $8 Trillion and there are a handful of others that had bigger inflation-adjusted market caps compared to Apple. Read more at Money Magazine.
Have an outstanding week!
-Physician on FIRE