Diamonds and Dogs #26
In each post of the Money Counselor “Diamonds & Dogs” series, I pick three items—an article, a website, a video, an image—that in my humble opinion would be especially valuable—the Diamonds—in helping Money Counselor readers make better money choices. And to contrast with the three Diamonds, I pick one lame item—the Dog.
- Have you discovered North Carolina resident Justin’s site Root of Good? You should! This guy retired two years ago at—get this—age 33! Justin now works full time at being a dad to his three young kids while his wife still works, earning that crucial health insurance benefit no doubt, among other things. Justin lays out beautifully in “Zero to Millionaire in Ten Years” how he and his wife accomplished his early retirement feat. Did they succeed by winning a lottery or benefiting from a huge inheritance? Nope. The main takeaway from Justin’s story is that if he could do it, so can many of you. If you read just one personal finance piece over the next 30 days, this should be it.
- While we’re on the theme of retiring early, here’s another goodie: “The Ten Questions to Answer Before You Retire Early” on the blog Our Next Life. Please note the subtle suggestion that you’re to answer, not merely ask, the ten questions. Each question is a bit of project, and that’s good. They make you think deeply. A bad week at work or a boss you hate or a penchant for goofing off doesn’t mean you’re ready to retire early—or late!
- After Justin’s description of how he went from zero to millionaire in 10 years inspires you, you’ll be keen to get started. Then check out “How to Save Your First $100,000” at Money Under 30. The excellent formula Chris Muller lays out includes two of my all-time favorites: swear off credit card debt, and create a budget. Can you save $100k without doing either of those? Of course—if you don’t mind doing things the hard way!
My dog this edition is all the so-called “technicians” who peddle to retail investors (that’s you) what amounts to exactly nothing more than stock price astrology readings. These charlatans allege that they can predict a stock’s future price simply by aligning a graph of the stock’s historical price with certain supposedly meaningful patterns. Spend at least 90 seconds watching CNBC, and you’ll hear examples of the lingo characteristic of these fakes and Neanderthals: “double bottom,” “resistance level,” and “head and shoulders,” to name a few.
Please, please, please, anyone out there: send to me any independent study that demonstrates that any of the techniques used by technicians can reliably predict stock prices, and I’ll be overjoyed to publish here a retraction along with a photo of me eating my hat. Until then, don’t waste your time with “technical analysts” and CNBC.
Do you have a nomination for a Diamond or Dog? Send it to me please. I’ll give you credit if I use it in a “Diamonds and Dogs” post.