My Latest Efforts

A quick point of clarification to subscribers of my newsletter: Some of you have written specific questions to me asking what percentage of a portfolio should go into a specific recommendation, what price is the ideal point to buy, and what holding structure would be the most important for the investment.

Unfortunately, I have ignored responding to all of these e-mails, and that will always be the case. It is not out of my desire to be rude, but out of a recognition of the bounds of my legal authority. Before launching my subscription service, I met with the Missouri Secretary of State to discuss the regulations pertaining to newsletter services.

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A Post-Marriage Investment Plan

A fraternity brother of mine is getting married soon, and he had me draw up an asset overview explanation for himself and his future spouse. I removed most of it, and heavily edited the rest, but what remains is a good general overview of the different options for building an estate with a long-term investment plan after marriage:

As we begin, I should start by mentioning the different asset classes that can make up a diversified portfolio: You can own intellectual property that pays royalties (e.g. Keith Hernandez collecting $250 per month in royalties for his 1992 cameo on Seinfeld); you can own commodities that self-generate income (an investor owning a cattle ranch that sells two Angus cows every Friday for $3,500); you can own real estate (either owning a physical property yourself and collecting rent or by owning real estate investment trusts where you are the passive owner collecting dividend checks); you can own private businesses that you develop yourself or invest in other private businesses; you can purchase units or stock of publicly traded stocks;  you can purchase bonds from governments and companies to receive fixed-income payments; and you can own an interest-bearing account at a bank that pays you money (it can range from an FDIC checking account paying interest to a money market account that holds its value at $1.00 every day and pays you the interest on the high-quality commercial paper and government debt backing it up.)

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