What I've learned since moving to D.C. (some of which should be obvious): 0153

7601.  Treasury inflation protected securities (“TIPS”) refer to a treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation.  TIPS are considered an extremely low-risk investment because they are backed by the U.S. government and because the par value rises with inflation, as measured by the Consumer Price Index, while the interest rate remains fixed;

7602.  Interest on TIPS is paid semiannually;

7603.  TIPS can be purchased directly from the government through the TreasuryDirect system (TreauryDirect.gov) in $100.00 increments with a minimum investment of $100.00 and are available with 5-, 10-, and 30-year maturities;

7604.  Because the semiannual inflation adjustments of a TIPS bond are considered taxable income by the IRS, even though investors don’t see that money until they sell the bond or it reaches maturity, some investors prefer to get TIPS through a TIPS mutual fund, an exchange traded fund or to only hold them in tax-deferred retirement accounts to avoid tax complications;

7605.  Purchasing TIPS directly allows investors to avoid the management fees associated with mutual funds;

7606.  TIPS are also valuable because they are exempt from state and local income taxes;

7607.  TIPS usually carry interest rates lower than other government or corporate securities so they are not necessarily optimal for income investors;

7608.  The advantage of TIPS is mainly inflation protection, but, if inflation is minimal or nonexistent, their utility decreases;

7609.  Another risk associated with TIPS is a higher tax bill.  The adjustments of principal are considered income for tax purposes although investors do not receive the adjustments, but instead receive the coupons that result from them.  Thus, investors may be subject to tax on “phantom income” with the gain in principal outweighing the coupons received;

7610.  Seeing the market’s trends and following them are easy, but realizing when things are building too high and protecting yourself from the collapse are how you keep all the money you make (in the markets);

7611.  Follow trends, but always go in with an exit plan;

7612.  Fear is understandable.  Taking risks, making changes, it’s all scary.  It’s alright to feel afraid.  What’s not alright is letting your fear overwhelm you to the point that you don’t take action.  That’s when fear goes from being natural to being a roadblock standing in your way of true freedom;

7613.  Cynicism is another form of fear.  It’s a distrust that prevents you from having the confidence to move forward.  This distrust could be of yourself and can manifest in overwhelming self-doubt.  It could be paranoia about the markets or questioning a solid deal and backing out of an investment at the last minute.  You have to learn to distinguish between a genuine concern and an overblown fear.  If you are financially literate and have done your homework, you have to trust in your ability.  You can’t let others talk you out of what you know is right and you can’t talk yourself out of trusting in your knowledge;

7614.  Busy people are often the laziest people of all.  People easily become “too busy” to take care of the important things like their health, their family and their money.  They go to their job and work all day and are too exhausted when they get home to do anything else.  When they aren’t busy with work or family, they’re often busy watching TV, playing golf or shopping.  Yet deep down they know they are avoiding something important;

7615.  The most common form of laziness is laziness by staying busy;

7616.  Many people use arrogance to try to hide their own ignorance.  They bluster through, overcompensating with confidence to hide the fact that they don’t know what they’re doing.  Instead of humbly acknowledging where they need to change, they blame other people and circumstances for their own failures;

7617.  People are not looking for advice.  They’re looking to be seen, heard and validated in their perspective;

7618.  Most people assume people go to therapy to get advice or to change.  They don’t.  What most people are looking for is what we’re all looking for and, typically, didn’t get in our childhood: to be seen and heard.  Adults are just wounded children who have aged;

7619.  I can say (that) I’ve been on a chartered flight;

7620.  Chartered flights are pretty much like any/every other flight.  The only difference is everyone is going to the same place for the same reason;

7621.  In the world of stocks, many investors keep an eye on the Shiller PE index, a price earnings ratio based on average inflation-adjusted earnings from the previous 10 years.  The median Shiller PE Ratio has historically been around 16-17.  It’s a good barometer of what value we should be targeting.  A PE of 16 means that it costs us about $16.00 for every $1.00 of earnings we receive from that stock;

7622.  Looking back in time, we can see that there have only been a few times that the PE Ratio for the S&P 500 has been above 16-17.  Before the crash of 1929, prices almost doubled and people were paying up to $30.00 for every dollar of earnings from the S&P 500.  And, during the dot-com boom, people were paying hundreds of dollars for companies that had zero earnings;

7623.  As the dot-com bubble showed, when investors were paying $44.00 for $1.00 of earnings, they eventually said it wasn’t worth it anymore.  That’s when the big crash occurred;

7624.  Bowling is an NCAA Championship sport;

7625.  I can say (that) I’ve been to a NCAA (men’s) Final Four (basketball) game;

7626.  U.S. Bank Stadium (the (in Minneapolis, Minnesota) is impressive . . . and massive.  They did a good job designing it;

7627.  I can say (that) I’ve watched a NCAA (men’s) Final Four (basketball) game with Bo Jackson, Mark Dantonio (the head football coach at Michigan State University) and Steve Mariucci (the former head coach of the San Francisco 49ers and Detroit Lions);

7628.  I can also say (that) I’ve watched a NCAA (men’s) Final Four (basketball) game with Ralph Sampson (the former center for the University of Virginia’s men’s basketball team and the NBA’s Houston Rockets, Golden State Warriors, Sacramento Kings and Washington Bullets);

7629.  I can say (that) I’ve watched a NCAA (men’s) Final Four (basketball) game with Cory Alexander (the former point guard for the University of Virginia’s men’s basketball team and the NBA’s San Antonio Spurs, Denver Nuggets, Orlando Magic and Charlotte Bobcats);

7630.  I can also say (that) I’ve watched a NCAA (men’s) Final Four (basketball) game with Chris Long (the former defensive end for the St. Louis Rams, New England Patriots and Philadelphia Eagles) and Heath Miller (the former tight end for the Pittsburgh Steelers) . . . and John Grisham (the author);

7631.  You can’t ice Kyle Guy (the shooting guard for the University of Virginia’s men’s basketball team);

7632.  I can say (that) I’ve watched a NCAA (men’s) Final Four (basketball) game with Patrick Mahomes (the quarterback for the Kansas City Chiefs);

7633.  Patrick Mahomes’s girlfriend (i.e., Brittany Matthews) is rather attractive;

7634.  I can say (that) I’ve watched a college basketball game with 72,710 people;

7635.  Most of the shops at the “Mall of America” (in Bloomington, Minnesota) are chain stores;

7636.  I can say (that) I’ve been to a (NCAA) national championship game for (men’s) college basketball;

7637.  I can say (that) I’ve watched a NCAA (men’s basketball) title game with Ralph Sampson, Joe Harris, Malcolm Brogdon, Devon Hall, Justin Anderson and Roger Mason, Jr. . . . as well as Mamadi Diane, Willie Dersch, Sean Singletary, Evan Nolte, Sammy Zeglinski, Caid Kirven, Thomas Rogers, Will Sherrill and Rob Vozenilek (i.e., former University of Virginia men’s basketball players);

7638.  I can say (that) I’ve watched a (NCAA men’s college basketball) national championship game with 72,061 people;

7639.  A Tony Bennett-coached team can win a national championship (after all);

7640.  I can say (that) I saw the University of Virginia’s (men’s) basketball team win a (NCAA) national championship;

7641.  What do you call one of the official team hotels closing the hotel bar at midnight on the night of the national championship game?  The answer is: Stupid/Moronic;

7642.  The University of Virginia won a (NCAA) men’s basketball national championship in 2019, (exactly) 200 years after it was founded;

7643.  The 2019 (NCAA men’s basketball) national championship (game) was the first title game in college hoops history to have both teams make at least 10 3-pointers;

7644.  What’s meant to be yours is already making its way to you.  What was never yours is starting to flee from you.  With time, it will all make sense.  For now, bear the confusion and focus on living fully in the present.  Don’t let your whole life be “I’ll be happy when . . . .”  Be happy now;

7645.  We value things more because we have them;

7646.  Instead of asking, “How much do I value this item?” ask, “If I did not own this item, how much would I pay to obtain this item?”

7647.  Good now is better than perfect later;

7648.  Your lack of planning does not constitute my emergency;

7649.  If something is unsustainable then foundationally it cannot be right;

7650.  To attain knowledge, add things every day.  To attain wisdom, subtract things every day;