GTD for Investing like GTD for Productivity?

[mnygren]

The fastest way to get a million dollars by investing is to start with two million… and statistically most brokers don’t beat the market. There‘s no magic bullet. If you want to learn a bit, look at Three-fund portfolios to get some idea of what a simple portfolio might look like and go from there. Disclaimer: I am not licensed to give any kind of financial advice. There are many sources for investment advice, and most of them are stupid or crooked or both.

Thank you! I have made a note and will research that. It is interesting what you mention about turning 2 million into 1 million. This is why I don't know if I believe money has anything to do with successful investing. I started reading the book the Missing Billionaires and it describes why I billionaires become millionaires and why those who are broke do not become millionaires.

 

[gtdstudente]

Thank you! I have made a note and will research that. It is interesting what you mention about turning 2 million into 1 million. This is why I don't know if I believe money has anything to do with successful investing. I started reading the book the Missing Billionaires and it describes why I billionaires become millionaires and why those who are broke do not become millionaires.

@mnygren

Great reminder . . . for a multitude of reasons . . . 'everybody' has had money while not every has money

 

[mnygren]

@mnygren

Eliminating and keeping debt obligations at zero sounds like a peaceful fiscal system . . . good job

Some like to begin their financial education learning about U.S. Treasury Securities

Meanwhile, ask Dave Ramsey if U.S. Treasury Securities are safe for Area-of-Focus provisions (cash reserves) where Warren Buffet currently has a $160B for Berkshire Hathaway, Inc.?

Hopefully Dave Ramsey can also motivate the U.S. government to reduce it's debt as he prudently did for you?

As you expressed, continue watching out for the 'stupid crooks' . . . whose real specialty seems to be lacing their useless Nobel Laureate Economic credentials with fancy smooth talking crafted presentations to mostly make their AUM targets feel extra warm and fuzzy?

Research "Long-Term Capital Management", Lehman Brothers, etc. apologetic implosions with the 'Calvary' unavailable to save the day to make those whose lost savings whole?

More recently, Spring 2023, Silicon Valley Bank's and First Republic's real smart 'professional' bankers had to be bailed out by FDIC . . . rightly spooked depositors (individuals and commercial enterprises) in excess of FDIC limits had a very good day without any guarantees that ever being repeated again . . . an amateur mistake Warren Buffet avoided with $160B on hand delegated to a one person committee?

All the best in potentially developing an Area-of-Focus for financial literacy education and perhaps tax literacy education as well

Ps. When seeing any performances it is very difficult to differentiate between chance and repeatable skill

As you see GTD fit?

It is much more peaceful being out of debt. I will research U.S. Treasury Securities which I know nothing about and the other reference you mentioned. Thank you for the vocabulary. I love you perspective on this subject. I have those as my area-of-focus.

 

[mnygren]

Know how much is coming in, know how much is going out calculated on a yearly basis. The going out should be no more than 70% of the coming in. Invest the rest in funds that mirror the stock market until you have a nest egg equivalent to 3-4 years salary. Then hire an investment professional who is not paid on commission but instead paid based on the growth of assets under management. Pay particular attention to your risk tolerance levels (all reputable investment firms will have huge questionnaires that will help you figure out your risk tolerance) and generally invest 1 step more conservatively than your acceptable risk tolerance. Rebalance your portfolio based on investment professional recommendations no more frequently than every 3 months. Keep in mind that once or maybe twice a year is usually sufficient.

This is very good information. I love how you can quantify those thing you are in control of such how much goes out and comes in. This is what I am looking for. This is good advice to to hire someone that works based on assets under management. I kind of learned this the hard way. I will take in mind the info about risk tolerance. I have taken similar questionnaires related to my employee retirement account. I have re-balanced my portfolio but it has been over a year. I may want to do this more frequently. Thanks!

 

[mnygren]

David Allen’s GTD book is a classic for personal productivity and Benjamin Graham's Intelligent Investor is the same when it comes to investing – I see a lot of similarities so I suggest to start with this book.

Perfect. This is what I was looking for. I will check that out. Thank you for the recommendation!

 

[mnygren]

I think you have a project for "learning about investing"! However, there is no such thing as a free lunch, and no book or guru is going to make you a millionaire overnight. Sorry. The only routes to making money really are inherit it, win it or earn it. Huge returns without much effort generally aren't a thing, unless you're a somewhat bent investor with millions to splash about or really really lucky in a business deal.

If you're struggling to find work then perhaps you have another project there - is it time to learn something new, find a second job to bring in extra cash? Another one to look at is budgeting - Dave Ramsey is good here.

My own experience has been to learn about different investment products (I'm in the UK btw ) and what they do / how they work. I've learned a bit about tax and how to minimise one's exposure - not the same as avoidance might I add! This means if I talk to a financial adviser I can understand what they're telling me and spot if they're talking bobbins, in my opinion. Most of my spare cash was either ploughed into buying this house or is in ISAs.
My main focus has always been keep the pension pots well-fed and make sure I have a bunch of "oh shit" money available in the bank for those times when everything breaks / leaks / explodes at the same time. My FA recommends 6 months' worth which is a good target. Once those are in place I feel a lot calmer about finances.

I agree to an extent. I do have a job and a project to get a better one with more hours. It is my intent to earn it and looking for the education and skills. It is definitely good advice to understand what I own. I know a bit about taxes from doing my own taxes. It is great to have a pension. I think these are less common now days and not sure if I want to be working 9 to 5 until I am 80 doing a job I do not enjoy. It is great to have the emergency fund. Good advice and the next thing I am working on!

 

[mnygren]

@HelenM

Nice post on what COMPOUNDING pounds looks like

Thank you very much

Ps. Perhaps also YouTube 'College/University' for diagnosing and possible doing resident Prop maintenance/repairs as a 'hobby' for done to one's satisfaction in more than one way?

Pps. Also, @mcogilvie kindly posted a very active good site . . . bogleheads.org is also good for those like avoid being swindled through necessary delegation(s)

bogleheads.org! Good site!

 

[mnygren]

@mnygren If we're talking about education, read these two books first:

1. "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel;
2. "Just Keep Buying: Proven ways to save money and build your wealth" by Nick Maggiulli.

I will check them out. Thank you for the recommendations

@TesTeq

Very Nice: "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel

Less than Two-Minutes:

Just ordered book: "Just Keep Buying: Proven ways to save money and build your wealth" by Nick Maggiulli

Blog might have a few nuggets: OfDollarsAndData.com

OfDollarsAndData.com! Another good link. Thanks!

 

[mcogilvie]

@mnygren If we're talking about education, read these two books first:

1. "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel;
2. "Just Keep Buying: Proven ways to save money and build your wealth" by Nick Maggiulli.

I liked “Four Pillars of Investing“ by William Bernstein and “A Random Walk Down Wallstreet” by Bernard Malkiel but I haven’t looked at them in years. Books about the psychology of money are very different from books about investing, but if you need the former type of book, you need it.

 

[gtdstudente]

I liked “Four Pillars of Investing“ by William Bernstein and “A Random Walk Down Wallstreet” by Bernard Malkiel but I haven’t looked at them in years. Books about the psychology of money are very different from books about investing, but if you need the former type of book, you need it.

@mcogilvie

Thanks to you . . . just ordered

“Four Pillars of Investing“ (2023) as well as "The Delusion by Crowds, Why People Go Mad in Groups" by William Bernstein

Thank you sir

 

[gtdstudente]

@mnygren If we're talking about education, read these two books first:

1. "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel;
2. "Just Keep Buying: Proven ways to save money and build your wealth" by Nick Maggiulli.

@TesTeq

Started reading "The Psychology of Money: Timeless lessons on wealth, greed, and happiness" by Morgan Housel

Super recommendation . . . very accessible . . . and nicely goes beyond the money Psychology

Thank you very much sir

 

[TimBourne]

Hello. I believe that I have become a master of productivity with the GTD method but I don't know a darn thing about investing

neither do I

. GTD promises to be a system that helps clear the mind, reduce stress and accomplish more. Is there something similar for investing or is it just too fragmented.

?

The best I know is from Dave Ramsey and it did motivate me to get out of debt which I accomplished but I have not learned about making money fast, like GTD promises to clutter your life by quickly putting everything in a inbox and having the weekly review.

writing negative of GTD?

Is there a financial peace inbox that promises huge returns every week without much effort. I don't have a lot of money and having trouble getting the work I had before Covid.

Covid is a lie BTMI by the medical industry.

I am just interested in a system that will help me invest and have that peace I get with GTD that my money is were it needs to be at every minute of my life. Thank you!

" invest and have that peace I get with GTD " writing positive
I

@gtdstudente at least

this thread - is too high level for myself

when wrote above 2 comments - all I did was scan over reading the post first here and looked over other information

STN?

 

[Gardener]

Another vote for Bogleheads and for Bernstein's books. (Though rather than the pure three-fund scheme I skip the bond funds and fill that allocation with individual Treasury bonds. I'm too old to have patience for fund recovery from interest rate changes. Or maybe just too impatient. Unpredictability in stocks is fine with me. In bonds, not so much.)

 

[mcogilvie]

Another vote for Bogleheads and for Bernstein's books. (Though rather than the pure three-fund scheme I skip the bond funds and fill that allocation with individual Treasury bonds. I'm too old to have patience for fund recovery from interest rate changes. Or maybe just too impatient. Unpredictability in stocks is fine with me. In bonds, not so much.)

I think you can avoid some work by using, for example, Vanguard’s treasury ETF’s. Also, our bank offered us a much, much better rate on our savings account after we transferred a big chunk of money out of it.

 

[gtdstudente]

Another vote for Bogleheads and for Bernstein's books. (Though rather than the pure three-fund scheme I skip the bond funds and fill that allocation with individual Treasury bonds. I'm too old to have patience for fund recovery from interest rate changes. Or maybe just too impatient. Unpredictability in stocks is fine with me. In bonds, not so much.)

@Gardener

Agreed . . . longer Treasury duration/horizons [Notes {years: 2-10} and Bond {years: 10-30}] could have more principal/cost price fluctuation than 'principle stable' Bills {weeks: 4 to 52} . . . as long as credit quality/worthiness remains in tact


For the most part:
'Prior maturity liquidation value' increases when interest rates decrease since purchase

'Prior maturity liquidation value' decreases when interest rates increase since purchase

Due to unforeseen withdrawals, the immediate above is what caused the 'professional banking managers' at Silicon Valley Bank and First Republic Bank to file bankruptcy on behalf of Shareholders, Depositors, FDIC, and U.S. Treasury's Taxpayers . . . of course . . . after the 'professional managers' made their 'professional arrangements' to receive their very handsome 'performance' bonuses

Ps. The 'professional managers' at Silicon Valley Bank and First Republic Bank were betting other peoples money on decreasing interest rates to make a bundle on 'their' risk-free U.S. Treasury investments while insufficiently factoring possible interest rate increases and 'withdrawal randomness' . . . Banking 101?

However, definitely deserve an "A+" for lame excuses?

Good reinforcement for: "If anything goes wrong, who fixes it?"
After all . . . reality will have the final say . . . and someone(s) will be doing the 'fixing'?

Pps. Individuals and many pension funds holding any of the many other regional banks shares undoubtedly also fiscally suffered form the above envy, greed, and selfishness?

As you see GTD fit. . .

 

[Gardener]

I think you can avoid some work by using, for example, Vanguard’s treasury ETF’s.

That would solve any issue with the bonds' credit rating, but it would still be a bond fund, and still sensitive to interest rate shocks. Now that I'm not too far from retirement, I want the simplicity and predictability of buying bonds with my preferred maturity date, and holding them to maturity.

(Unless you mean an ultra-short-term Treasury ETF. I could see using that instead of puttering with, say, 4- or 8- or 17-week bills.)

(I have looked at defined maturity date bond funds, but I don't fully understand them yet--that is, when I look at the returns, they're not what I would have expected, and that is presumably a lack of understanding--so I'm waiting until I do. Then I'll decide whether the fee is worth it for saving me the trouble of just buying my own bonds.)

Also, our bank offered us a much, much better rate on our savings account after we transferred a big chunk of money out of it.

Heh.

 

[gtdstudente]

That would solve any issue with the bonds' credit rating, but it would still be a bond fund, and still sensitive to interest rate shocks. Now that I'm not too far from retirement, I want the simplicity and predictability of buying bonds with my preferred maturity date, and holding them to maturity.

(Unless you mean an ultra-short-term Treasury ETF. I could see using that instead of puttering with, say, 4- or 8- or 17-week bills.)

(I have looked at defined maturity date bond funds, but I don't fully understand them yet--that is, when I look at the returns, they're not what I would have expected, and that is presumably a lack of understanding--so I'm waiting until I do. Then I'll decide whether the fee is worth it for saving me the trouble of just buying my own bonds.)


Heh.

@Gardener

Nice . . . "Fees" and "Control"


Meanwhile, caveat emptor regarding ETF's and Money Market funds that very much only like to 'say' holdings are "U.S. Treasuries" while reality says differently . . which can have unanticipated/undesirable tax, etc. consequences?


Worthy income allocation consideration?
1/3 Taxes?
1/3 Inflation Mitigation?
1/3 Discretionary?


As you see GTD fit. . . .

 

[Gardener]

@Gardener

Agreed . . . longer Treasury duration/horizons [Notes {years: 2-10} and Bond {years: 10-30}] could have more principal/cost price fluctuation than 'principle stable' Bills {weeks: 4 to 52} . . . as long as credit quality/worthiness remains in tact

The fluctuation in market value of my longer-maturity bonds is fine with me, because I plan to hold them to maturity. It does affect how much money I send into the future that way, because of course the unexpected can happen.

 

[gtdstudente]

Warren Buffet's T-Bills are $277B (updated from $225B) after liquidating $75B / 50% of AAPL position . . . the T-Bills are generating $1B per month in 'interest'

 

[TesTeq]

Warren Buffet T-Bills are $225B after selling $75B / 50% of AAPL position . . . the T-Bills are generating $1B per month in 'interest'

@gtdstudente So… Mr. Buffett is a tax collector. Clever!