Latest posts by Wanderer (see all)
- Investment Workshop 50: Goodbye TD Ameritrade, Hello Vanguard! - November 15, 2017
- The Three Paths to Financial Independence - November 13, 2017
- Investment Workshop 49: Expat Insurance - November 8, 2017
Hello again and welcome back to the Millennial Revolution Investment Workshop! New readers, please click here to start from the beginning.
We Read the News So You Don’t Have To!
If the last few weeks has shown us anything, it’s that this crazy world we live in is pretty damned unpredictable.
Last week, we talked about the resurrection of the Republican’s efforts to dismantle Obamacare, an issue we thought had been put to bed months ago. At the time of us writing that, it looked like those efforts were spiralling towards certain doom once again, but then in an 11th-hour arm-twisting session administered by President Trump to rebellious lawmakers, the Republicans managed to pass their health care repeal bill by a single vote.
The House passed legislation Thursday to repeal and replace Obamacare, as Republicans came closer than ever to realizing their seven-year pledge to overturn the Democratic law and remake health insurance for millions of Americans.
The bill now moves to the Senate, where GOP senators have already declared it dead on arrival and are pledging to come up with their own proposal from scratch.
Within minutes of the House passing a bill to repeal the Affordable Care Act, Sen. Lamar Alexander (R-Tenn.) took to the Senate floor to congratulate the other body, and pronounce the legislation all but dead.
So the saga continues, and the fates of millions of people (not to mention millions of early retirement plans) hangs in limbo. Fan-fucking-tastic.
Fortunately, my informal behind-the-scenes conversations with the other FI bloggers suggests that if the Obamacare repeal does come to pass, there are ways of ensuring you can continue to get health care if you get sick without completely screwing over your early retirement plan. We will continue monitoring the situation for our American readers and if it looks like it’s actually going to happen, you can bet we’ll be sharing the strategies you can use to protect your health care right here on Millennial Revolution.
Meanwhile, the world hasn’t just sit idly by watching this health care mumbo jumbo take place. In the last week, a surprise election result in France kicked out every major political party and has elected Emmanuel Macron as the youngest president of France since Napolean
The pro-EU centrist Emmanuel Macron has vowed to unite a divided and fractured France after winning a decisive victory over the far-right Front National candidate Marine Le Pen in the country’s presidential election.
The victory was seen as a stunning rebuke to the rising wave of far-right nationalism that seemed to be sweeping over the world, which is a huge relief. The last time far-right nationalism took over Europe, things…er…didn’t go so well.
And meanwhile on the other side of the world, North Korea stunned the world by threatening nuclear war. Well, that part wasn’t so surprising, but what WAS surprising is that the country they threatened was…China?
North Korea has issued a rare direct criticism of China through a commentary saying its “reckless remarks” on the North’s nuclear program are testing its patience and could trigger unspecified “grave” consequences.
OK…that was…unexpected. Apparently, China of all countries has started to apply sanctions at the request of the Americans in order to increase pressure on Pyongyang. The optics of a communist country cooperating with the West to tamp down another communist country is…unique to say the least.
But We Still Ain’t Gonna Trade On It
So in all this turmoil, how have we reacted in our workshop? We haven’t.
We’ve consistently performed our buys with mind-numbing regularity and steadfastly refused to allow what we read in the news to affect the buy schedule we decided on at the beginning of the year.
That’s not to say we’ve completely ignored the news. Certain information needs to be taken seriously. For example, the slim (but real) possibility that Obamacare may be going away has caused the FI bloggers to restart discussions on how to handle health care without blowing up our early retirement. And Trump’s victory has caused us to head South where our living expenses have plummeted because of his effect on the Mexican Peso.
But we never let the news affect our investment decisions, because that’s what you need to do to build a portfolio of low-cost Index ETFs.
Speaking of which, how has that portfolio been performing?
Turns out, surprisingly well. Our balance at the time of this writing is $5750, from having $5500 invested. That is a 4.5% return so far this year!
That’s pretty damned good considering we’re less than halfway through 2017.
And how would we have done if we had invested based on what we read in the news?
Because if you recall, we started this workshop right after Trump got elected, and I went on the record saying that we were now headed into a global economic recession. So if I had actually listened to that voice in my head that was saying “Run for the hills! The world is on fire!” I would have cancelled the Workshop and just hid in cash. Instead, this is what I said.
We will demonstrate how to invest in a world-is-on-fire everybody-run-for-the-hills goddamned economic collapse. And we WILL make money.
Wow. Check out the swagger on THAT guy, huh? Hope he never finds out how right he was, or his head would SOOOO fucking big.
So to recap, by ignoring the news we have returned 4.5% YTD. If you invested $5500, you made $250. If you invested $100k, you would have made $4500. And if you really went all in, like one reader who wrote to me saying he was planning on following the workshop with his whopping life savings of $500k, that reader (if he followed through) made $22,500.
And Now Onto the Buys…Oh Wait
Now this is where we would normally do our regularly scheduled buys, but because of the weird way the months synced up, our buy would fall on May 9th. So it looks like our bi-weekly buy has shifted a bit from our intended 1st-and-15th buy schedule. As a result we will delay our regularly scheduled DCA until next week so we’re better synced up with the calendar.
See you next week everyone!
How much does it cost to participate in this investment workshop? NOTHING. Because that's how we roll. All we ask is that you sign-up using the following affiliate links to keep it free forever:
NOTE: Due to their recent changes for their commission-free ETF program, we can NO LONGER RECOMMEND TD Ameritrade. We are currently seeking out a new brokerage to partner with and will let you know when we find one.
2) Personal Capital
Disclaimer: The views expressed is provided as a general source of information only and should not be considered to be personal investment advice or solicitation to buy or sell securities. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decisions. The information contained in this blog was obtained from sources believe to be reliable, however, we cannot represent that it is accurate or complete.