In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 3rd decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Is Opportunity Knocking in the Financial Markets?
Billy and Akaisha Kaderli
I have been successfully
investing for over three decades. Yes, I have made my share of costly
"educational" mistakes, but
we are still here.
Mostly throughout this time I have been on my buy and hold plan, kicking back
and enjoying the returns. I have always known about the ten-to-twenty-year
market cycles, from when I worked on Wall Street, but the Great Recession gave
me the opportunity to be re-educated.
Remember, the learning never
stops and our objective is
Billy and Akaisha in Phuket,
Age brings perspective
Akaisha and I are rapidly
approaching 65 years of age.
I am a realist, and in regards
to our investing approach, I am now measuring the “long term” in years as
compared to decades. After the decline in 2008, I decided I needed to be
proactive as compared to holding forever and letting the market whipsaw our net
Where do you stand?
Everyone must find their level
of comfort when it comes to investing, and the market drop of 2000 and 2008 has definitely
tried the patience of many. Some have sworn off the stock market forever and
others went to cash and are still sitting there looking for the perfect entry
point. A lot of money went searching for safety and poured into bonds. I decided
to alter our portfolio, changing from open-ended mutual funds to using Exchange
Traded Funds, otherwise known as ETF’s.
Real time benefits
ETF’s trade in real time so I
can see the price at any point throughout the trading day as compared to the
open-ended funds that are priced once daily, at the close of the market. If a
change needs to be made - either buying or selling - I do not have to wait until
the end of the day to learn at what price the trade was executed. This gives me
more flexibility and control over our portfolio.
I am not day trading, and still
use SPY, VTI, DVY and DIA as major positions, but have disciplined myself enough
to realize quickly when the market is going against my trade and I make
adjustments accordingly. Or, for example, if a recent purchase has increased to
the point where it’s-too-good-to-be-true, I take the gain.
We are living through some very interesting and challenging times in the
financial markets, with the Federal Reserve committed to raising interest rates and I want to be able to take advantage of opportunities as
they arise - both on the long and short side of the market. After all, it’s not
what we make but what we keep that is important to us at this point in our
Learning from flat line returns
I am neither a bull nor a bear
and riding the market up and down only to finish flat is not a winning strategy. Markets usually do
bounce back, but it takes to time recover the losses and that’s a commodity that
we have less of at our age. Successful investors know the secret to building wealth is to
limit losses. Now, if you are younger or just starting out this is not so much
of an issue. However, as long term gets shorter by the day for us, our goal is
to keep more of the profits to better enjoy ourselves for the time we have left
Present and future approach
I still have a core portfolio
that is not touched, and so far, I have been buying or selling only in our IRA
accounts. This negates having any tax nightmare and for now, that is my plan.
I am very much looking forward
to the day when I can once again go long and forget about it, putting our
portfolio on autopilot. However, in the meantime, there are financial
opportunities to be had.
Utilizing ETF’s have offered us
possibilities to make money with more flexibility no matter which way the market
goes, and that is something our previous buy and hold philosophy didn’t offer.
About the Authors
Billy and Akaisha Kaderli are
recognized retirement experts and internationally published authors on topics of
finance and world travel. With the wealth of information they share on their
they have been helping people achieve their own retirement dreams since 1991.
They wrote the popular books,
The Adventurer’s Guide to Early Retirement and
Your Retirement Dream IS Possible.
information about financial independence and travel, visit our
Billy and Akaisha continue to journal and photograph their
Retire Early Lifestyle Blog
About Billy & Akaisha