Practical approach to sustainable wealth
In our journey to Financial Independence, I have been tracking three key metrics: Net worth, defined as total assets – total liability Accessible net worth, discounts equity in the primary residence, and Adjusted accessible net worth, which further discounts funds in retirement portfolio which are inaccessible without penalty until age 59. We achieved our first […]
I penned my thoughts on the above question in Oct of 2019, (see here) and am revisiting this question again as I recently came across the following reddit post. The author of the post presents (an interesting) mathematical reasoning to provide a financial justification to pay off mortgage early. The argument may seem correct when […]
It is the time of the year when I do an annual review of how AVI family performed financially. The progress report on years past can be seen under– 2019, 2020, 2021, 2022. Here is the summary report on how we did on various personal finance metrics that I like to track (as percent of […]
Lets us begin this post by having a look at the following chart: The chart plots the percent change in AVI family net worth (shown in blue) in comparison to change in S&P 500 index (red). In addition, I plot the change in net worth discounting for the unprecedented growth in valuation for AVI family […]
Its again time of the month when I report net worth status for AVI family. For folks who are new to this blog, I want to quickly summarize how I report net worth and what are the key metrics that I track month-to-month. The basic Net Worth equation is: [math] \text{Net Worth} = \text{Total Asset} […]
Its been a month since my last post. Most certainly the frequency of my blog posts have gone down significantly. I want to in part blame myself for the time mis-management and in part to the phenomenon called “life-happens”! Regardless, one constant in my life has been investment readings and in general keeping abreast of […]
STEP stands for (S)imple, (T)olerable, (E)nduring and (P)assive. Before I dig deep into my revised investment philosophy and the changes in AVI portfolio that it has entailed, lets take a look back into the 3-years of investing life that was guided by my prior investment philosophy, which I put to pen in late 2017. For […]
Time for yet another monthly update on AVI family net worth status. As I noted in my last net worth update post, AVI family net worth has surpassed the semi-retirement phase of the 4 phase FIRE path (these being: accumulation; semi-retirement; financial independence and traditional-retirement), i.e., net worth is equal to or greater than AVI […]
Wow! its mid March and for the very first time in a very long time, I missed out on updating AVI family net worth status on time. In the hind sight the delay in reporting has been worth it! As of this writing, I am happy to announce that AVI family has achieved their first […]
Let me begin by showing the following chart, Buffet indicator, otherwise the ratio of US total stock market valuation to US GDP, has officially crossed the peak value reached during the dot-com bubble, not withstanding the correction in the stock price of growth oriented stocks in the past week. The rapid rise in the 10 […]
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