Category Investing

There’s a major market crash coming…

Crashes are a fact of life. The housing market and the stock market are both prone to crashes. It’s just that these crashes look different. In a housing market crash, prices are “sticky” and slow to adjust downwards as sellers resist price cuts.  Transactions dry up, people stay put and it can take years for […]

What if you know nothing about investing?

A couple of weeks ago I was asked to give a talk to the support staff at a company about their workplace pension choices…now that pension auto-enrollment is being introduced. Everyone there was female…other than one token male and The Escape Artist.  Some knew a lot about investing but most didn’t. And being women, they were […]

Peer to peer lending is just another form of sub-prime debt

Today’s post is taken from the classic personal finance book The Richest Man in Babylon. Arkad was a wise man who lived in the ancient city of Babylon over 6,000 years ago. Arkad learned the ancient laws of money and, as a result, became The Richest Man in Babylon. Now you may be wondering what […]

What if Vanguard gets nuked?

As low cost index trackers become more and more popular, one question I often get during financial coaching is: What would happen to my money if Vanguard went bust? I worked in corporate finance and saw enough companies go bust to know that it’s a good question. And it’s worth sharing the answer with readers. But The Escape Artist doesn’t […]

Hey everybody! The Emperor is butt naked!

In Hans Christian Andersen’s fairy tale of The Emperor’s New Clothes, two fund managers tailors promise an emperor a new suit of clothes made of the finest and most expensive fabric. They explain to the Emperor and his advisers that the fabric is invisible to people who are stupid and don’t understand tailoring. When the Emperor parades before his subjects in […]

Honey, I fired the wealth manager!

One of the great things about a blog is the comments, emails and other feedback from readers.  Best of all are reader success stories like the one I have for you today. Like everything good, the rewards of blogging are not always obvious at first. You share your insights and try to make the world a […]

The Simplicity Portfolio

Investing can be made simple enough for anyone to manage their own investments. Here’s how. Here’s a simple example portfolio using low cost Exchange Traded Funds (ETFs) from Vanguard. Its no harder for anyone to buy or manage than it would be to open an online bank account.  Its so simple that a child could manage […]

Investing with the Automatic Pilot

Over the last few years, investing has been like flying a passenger jet in near perfect weather conditions. Sure, things started off rough in 2008/9, there was the odd squall in 2011 and there have often been storm clouds on the horizon. But, for the most part, there has been a tailwind, no turbulence and the Captain has been […]

How to break up with your wealth manager

Reader: OK, T.E.A. – I’m the customer of a wealth manager or financial adviser and I read your previous post on being screwed.  I’ve a nasty feeling I’m paying a shit load of fees for underperformance but I’m nervous about changing.  It would be hard for me to leave…who would I speak to when the news headlines are […]

financial independence

Day trading: Frankie goes to Vegas

Charlie Munger likes to invert problems. He says he’d like to know where he is destined to die. Why? He explains: “So I can then be sure never to go there”. Similarly, one way to get rich is to think about how to get poor…..and then do the opposite. A good example of this is day trading. […]