Reality includes penny-pinching and being bored all the time

FIRE, or the “Financial Independence, Retire Early” movement is a popular personal finance concept where you compile an investment nest egg with your savings, and live off your savings, allowing you to retire earlier than the usual 65 years of age. Let me be clear, I believe saving is a wonderful thing, and more people should definitely be doing it, however, people often do not have a clear understanding of what early retirement entails. Not having a job, or something to grind may not be the best choice for everyone. Many people will end up pinching their pennies in order to live a life where they do not need to work, but oftentimes won’t be able to live the way they imagine either. …

Here’s what they are, and how they work

Within the range of services that an investment bank provides, there is a common mandate which often reaches the news headlines. Notable transactions include Disney & Pixar, Google & Android, Exxon & Mobile, just to list a few. These deals show us a story where there are benefits to a successful M&A transaction from a business sense. Perhaps there aren’t enough growth opportunities for the companies on a standalone basis, and perhaps a behemoth of a company wants to expand its product/service offerings without spending years developing a similar offering from the ground up.

Photo by Cytonn Photography on Unsplash

When a company matures and growth slows relative to its historical past, it is inherently pressured by investors to seek different avenues of growth. Many times, M&A is the focus of this inorganic growth. There are acquisitions that make complete business sense, but there are also failures and acquisitions that made no sense. …

Modern Portfolio Theory and using statistics properly to invest

Technical analysis involving analyzing patterns, moving averages and other similar voodoo magic is essentially useless. For technical investors, many get caught up in the weeds and use their statistics, programming, and mathematical skills incorrectly. The first concept taught in finance courses around the world is that past performance should not be indicative of future performance. Instead of trying to find ties to the financial world to synergize with, chartists gamble using pictures past performance.

Photo by Denys Nevozhai on Unsplash

Without understanding the fundamentals of the game you’re playing, and only using statistics, you are at a disadvantage compared to people who understand financial markets. It’s not enough to bet on sports without understanding the sport itself. Today, I’ll be introducing a crucial concept to know for portfolio management, which requires an understanding of statistics, and math. …

Distinguishing Between a Salesperson and an Independent Advisor

These days, a dark secret of many financial institutions is that the advisers they hire do not consider your best interests. What I mean by this is that without a regulatory body providing them a set of standards, they are free to suggest investment options that may not be the best idea for you and your family. Unless an adviser is a CFP, CFA, CPA, or any similar designation, they have not passed any tests to certify their knowledge, nor are they bound to important principles of conduct. …

Business lessons to take from government policies

As a Canadian citizen who’s working from home up north, I’ve been worrying about my US neighbors and friends. My coworkers all have health insurance, but thinking about the people without it makes me deeply disheartened. With the greatest pandemic that the modern era has ever faced going on, it’s scary to think that some people will forgo their health for the sake of their finances. Although only 8.5% of people in the US are uninsured as of 2018, the fact that it costs more per capita than countries with universal healthcare, there is a huge problem and represents wastage. With the US currently sitting at 14.7% …

History often repeats itself, and bubbles still exist today.

Since the beginning of capital markets and investments, investors have been lured by the promise of high returns and speculative neighbors. Most recent in an investor’s memory may be the spectacular volatility of Bitcoin and similar cryptocurrencies, or the recent decline in the cannabis industry. If you’ve studied the intricacies of history or past events, you would often find patterns that occur again. History often repeats itself, and catching repeated history in the moment, can save you from a ton of heartbreak and financial distress.

I’ve personally invested a small percentage of my portfolio in the past to speculate with cryptocurrencies and CBD companies. Money was made because I was early, and I decided to get out as soon as I made a healthy return, but many individuals may have a different story. Here’s what I learned about bubbles using history, and why you should know about them too. …

Automate your real estate analysis with Pandas and Numpy

Real estate analysis isn’t complete without automating the calculation of mortgage payments. We’ll look to create our mortgage calculator from scratch in both Excel and Python. By the end of this article, you’ll know exactly how to conduct your analysis for different types of loans and mortgages when you’re confronted by advisers who are compensated based on your business with them. Choose the best deal for you and your family, not the best deal for the bank providing the mortgage.

For business owners looking for mortgages to take on for business purposes, this may be helpful in your search for the best property. Feel free to take this calculator and add it to your real estate analysis toolkit. If you follow along for both, you’ll have a deep understanding of how things work, but feel free to jump to the Excel or Python sections however you please. …

A suitable mortgage amount to take on, and a look at renting vs. buying

With real estate markets around the world suffering from drops in demand, and prices holding steady unreasonably, people may be looking to purchase later on when the economic impacts of COVID-19 finally hit the markets. As a tenant in the Central Business District (CBD) of a major city, I know the realities of trying to purchase a property. Crazy high property values mean that the only property that you can afford will be much less than your dream home. Keep in mind that these concepts are also applicable to a business when deciding between renting and buying an office property.

For those not interested in working or living in a Central Business District with unreasonable housing prices, lucky you, but stay tuned because, throughout this article, we’ll be exploring how much you can afford to spend on a house and mortgage payments. We’ll also look at the implications behind renting, and buying. …

Lessons of a dying company and what’s in store for retail companies

Several retailers have recently declared that they are hiring restructuring advisors to get them through Chapter 11 proceedings. Bankruptcy is different from restructuring, and if a company successfully comes out of Chapter 11 proceedings, we should see them eventually bring in profits again. Chapter 7, on the other hand, is the other option when a company is on track to miss scheduled contractual payments to its creditors. Instead of trying to fix the company up through asset sales, strategic changes, and refinancings, Chapter 7 proceedings look to liquidate assets and try to get creditors back whatever they can.

For this article, we’ll be examining the tragic story of JC Penney and try to understand what happened to this huge retail corporation over the years. They recently hired restructuring advisors, and will soon be going through Chapter 11 proceedings. Despite strong consumer sentiment, and aggressive economic growth (before 2020), the company has continuously struggled with the times. …

Learning to forecast revenues from Lululemon and Apple examples

Revenue forecasts are a crucial part of financial projections. This process is required for many purposes, whether it’s for investing, work, or company management. Many times, people just assume a growth rate based on historical numbers and apply this to the amount of the total revenue. The issue with this is that total revenues encompass a ton of different business segments, and these segments grow differently. Instead of averaging out the growth rate by combining these segments into one, we should estimate each segment’s growth on its own. Granularity is generally good for more accuracy, and easier for your coworkers to review. …



Investment banker, global citizen interested in the pursuit and sharing of knowledge. Inquiries to

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