Bonus Bits – Week of 12/20/21
Good morning! Here are this week’s bonus tips and nuggets from around the community. To get these every day in your inbox, sign up to our daily newsletter where you’ll see these faster, as well as our top 3 curated articles every day!
👉 Diversification vs Di-Worsification
A common refrain used by investors and advisors to describe diversification is “Don’t put all of your eggs in the same basket.” In its most simplistic terms, diversification means allocating your investment dollars to a variety of different assets, such as stocks, funds, bonds, and deposit products, within different sectors of the economy.
On the other hand, di-worsification is having too many holdings, which can cause dilution and lower overall returns. Typically, fund investors own several funds, each with dozens and dozens of holdings. To make matters worse, many funds have the same holdings despite having different names.
👉 New book coming out soon from the community:
“Stacked: Your Super-Serious Guide to Modern Money Management” by Joe Saul-Sehy and Emily Guy Birken
If you’ve ever dreamed of a basic philosophy of money that’ll help you live bigger, be bolder, and laugh harder, you need this book.
In these uncertain times, the basics matter more than ever. But for most of us, concepts such as investing, budgeting, and getting out of debt just don’t float our boats (or 150-foot yachts)—and so we put them off longer than we should. Joe Saul-Sehy and Emily Guy Birken are here to tell you that personal finance can be a lot more fun than you think. (No haberdashery, maritime knowledge, or specialized flatware required.)
Learn about everything from side hustles, to hiring a legit financial adviser, to planning for emergencies, to what’s new and exciting—and actually worth your time—in financial apps and software. If you’re looking for the same old get-rich-quick clichés, avocado toast shaming, or alphabet soup of incomprehensible financial terms, you won’t find them here. Instead, Saul-Sehy and Birken take you step by step along the way to financial success, with their signature blend of shrewd financial information and wacky humor.
👉 On intentional living…
Intentional living is about making exchanges. It’s about deciding where we are going to spend our time, money and limited energy. It’s knowing that we can’t fit it all in. It’s knowing that some years, our beloved traditions will need to sit the bench to ensure we have the capacity to enjoy what fits. We’ve got to be willing to physically miss a few things or else we run the risk of mentally missing it all. Friend, if you didn’t fit it all in this year, own it, rest easy, sip some hot cocoa and soak it in what you did.
👉 Build-to-Core Real Estate Investing Strategy
Build-to-core is a real estate strategy that is defined as developing a project from the ground up (“build”) and then holding the stabilized (“core”) property for the long-term. Wealth is created during the ground up development phase and then, following, the asset transitions to delivering a high yield passive income stream. This is a popular strategy utilized by pension funds, family offices, public REITs and insurance companies to maximize both appreciation and cash flow.
The build-to-core strategy achieves the two biggest goals of real estate investing, growth and income, with a single vehicle. The purpose of a ground up build is to create substantial value to equity through the development process.
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