Today we are answering this question: Can You Live Off Of Dividends? The short answer is, yes! You can live off of dividends. the tricky part is determining where to invest and how much money you’ll need. To determine how much you need, simply divide your annual expenses by your expected annual dividend yield, less … Read more
Today we’re breaking down Price to Earnings (PE) Ratios and answering the question: What is a good PE value? My guidelines are generally as follows: For a large, growth oriented, a good PE ratio is below 30. For a large, value oriented company, a good PE ratio is below 15. This is a highly nuanced … Read more
As a new investor, you might be wondering: what is a good net expense ratio for an ETF? For an index fund ETF, a good net expense ratio is generally below 0.10%. For an actively managed ETF, a good net expense ratio is generally below 0.6%. Let’s break this down in more detail! As a … Read more
Today we are answering the question: What is the best small cap value ETF? If you are looking for a more traditional, low cost index ETF, VBR is the way to go. For those looking for more active fund management, AVUV is my pick. What is Small Cap Value? Market Capitalization Breakdown This area of … Read more
Everyone has to start somewhere! In this article I’ll be answering the question: What should you invest in as a beginner? In short, your best place to start are low cost index fund ETFs that track the broader US stock market. Let’s break this down in detail. What Are Index Funds? An index fund … Read more
Today we are answering the question – Is an ETF or a Mutual Fund better for investing in an index fund? In general, ETFs are superior products for index investing for two key reasons: Liquidity and expense ratios. Let’s discuss! If you haven’t seen it yet, check out my favorite ETFs for passive income in … Read more
Today we’re going to answer the following question: what is a value trap? A value trap is a company that is trading at very low valuation multiples versus its peers, but is trading at low multiples due to negative fundamentals and/or outlook for the company. Value Traps are generally uncovered by a value investor who … Read more