Unless you are living under a rock...
The stock market has hit all time highs and my travels to Lake Como, Italy.
Welcome to issue #18 of DMD.
Money Moves
My son Alec, who was featured in the last issue of DMD for his fun story of investing into Microsoft (MSFT) stock when he was 15 years old, was married recently to his wonderful and beautiful bride on June 17 in Italy. It was an amazing few days of celebration leading up to an intimate and elegant ceremony on majestic Lake Como.
I spent a couple of extra days in the city of Como with another son before the wedding. While riding electric bikes around the lake, I was enamored with the energy, yet peace of Italy, the Alps from afar, the architecture dating back several centuries and the purity and wonderful taste of Italian cuisine.
I returned to the U.S. the day after the wedding with my daughter. On our nine (yes 9) hour flight from Milan, Italy to Atlanta, I began to dream more dreams.
Lake Como pictured below.
Intentional spending is a game changer.
I have decided to increase my automatic monthly travel savings account contribution so I can fly business or first class in the future when flying back to Europe. I want to visit Paris, London, Venice and Zurich, in that order next.
This is a prime example of what intentional spending is all about. I value travel and I value comfortable travel even more.
Also, as I witnessed poor people on the streets of Como and at a few train station stops, it reinforced another value of mine - giving generously to others in need. I will be increasing my automatic monthly transfer into my giving savings account too. Let me be clear: I am not saying this to have you think of me one way or another. I say this to stay real as to what I value in my life. Perhaps you do too.
I will look to increase my income and likely decrease my monthly automatic savings for other things I value less like clothes/shoes, etc. to focus on increasing these other named savings accounts that I now value even more as a result of my recent travels.
In what categories do you want to spend your money more intentionally and create new named savings accounts?
When you set up automated named savings accounts like Travel, Car Repair, Giving, Clothes/Shoes, Biz Startup or whatever, you begin to mold yourself into an intentional spender. And when you spend money this way it just feels so much better!
Gone will be the days of just swiping your credit or debit card on short term buying urges that leave you feeling empty within 24 hours. So, get it going!
Markets update (stocks and crypto)
The past few days have seen the stock market reach all time highs (ATH). Mind boggling when just 90 days ago stocks tanked big time. What a tremendous rebound and a reinforcement to keep to your automated stock investing weekly or monthly as you will find stocks on sale often.
The S&P 500 (where most of the stocks in your ETF’s and mutual funds are located if you have an investment account) is up 5.7% year to date (YTD). But since April 9, the index is up over 22%.
The Nasdaq (which has a heavy concentration of tech related stocks) is also up 5.7 % YTD. But since April 9, this index is up a mind numbing 26%.
Stock in focus: Nike (NKE) is a multinational corporation that designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services. Over the last five years the stock has been beaten down from nearly $170 to a low a week ago of $59. However, they reported earnings last week for the last quarter and the stock shot up nearly 12% on the news that they believe their growth story is back on track for this iconic brand.
Bitcoin trades at $107,000 and is up 14% YTD and 318%.
Top alternative cryptocurrencies Ethereum, Solana, XRP and Chainlink trade at $2,488, $155, $2.27 and $13.41 respectively with the total crypto market cap at $3.4 trillion - about $500 billion from an all time high (ATH).
Word of the Week: Equity
In finance and business, Equity refers to the ownership value held in an asset or business. For an individual, equity might be the value of their shares in a company or property minus any liabilities related to those assets. In the context of a business, equity represents the amount that would be returned to shareholders if all the assets were liquidated and all the company’s debts were paid off.
Why It’s Important:
Understanding equity is crucial for anyone involved or interested in business or investing. Equity can indicate the health of a company, determine a homeowner’s financial stake in their property, and influence investment decisions and strategies. It’s a key metric that can guide financial choices, from buying stock in a startup to refinancing a home.
Contextual Use:
Business Equity: “As the startup increased in value, the founder’s equity stake became worth millions, reflecting both the risks taken and the success achieved.”
Home Equity: “After several years of mortgage payments, John calculated his home equity and considered taking out a small loan to pay for needed renovations.”
Stocks
ROTH IRA (held with Robinhood)
Currently own the following ETF’s: VOO (tracks 500 stocks that make up the S&P 500 index), VTI (total stock market that tracks 4,000 U.S. stocks) and VYM (tracks high dividend paying stocks).
Currently own the following individual stocks as of May 29, 2025: Cava (CAVA) IBIT (Bitcoin ETF), IONQ (IONQ) and cash.
SEP-IRA (held with the Acorns saving and investing app) - this is my “401(k)” because I’m self-employed.
Vanguard S&P 500 ETF (VOO), iShares Core S&P Mid-Cap ETF (IJH), iShares Core S&P Small-Cap ETF (IJR), iShares Core Total International Stock ETF (IXUS), iShares Core U.S. Aggregate Bond ETF (AGG)
Personal investment accounts (Acorns, Robinhood, E*Trade)
Moderate to aggressive portfolio (mix of stock and bond ETFs) and individual stocks of Tesla (TSLA), Nvidia (NVDA), Bitcoin ETF (IBIT), Stryker (SYK), Robinhood (HOOD), Adobe (ADBE) and Visa (V) and Joby Aviation (JOBY).
Basic tenet of investing in stocks - when you automatically invest weekly or monthly into solid growth stock ETF’s and mutual funds you don’t have to worry about the ups and downs of the stock market. Time, based on historical evidence of the U.S. stock market returns, does the heavy lifting of wealth creation. Stocks are your primary foundational investments to winning the money game.
Over the last 150+ years the U.S. stock market has given investors about a 10.2% annual ROI. Fantastic annual returns that compound into significant wealth over time.
Crypto
Currently own Bitcoin (BTC), Chainlink (LINK) and Star Atlas (ATLAS).
We consider crypto an asymmetric investment opportunity and philosophy whereby you can invest small amounts of money that can possibly lead to high investment returns over time. There is nobody that can argue with crypto returns over the last 10 years in certain blockchain projects like Bitcoin, Ethereum, Solana, XRP and others. But you always need to be aware that asymmetric investments can always go to zero so never invest more than you can afford to lose.
Young Money University has helped thousands of young people begin using Acorns as one of their initial investment accounts. Takes five minutes to set up and Acorns automatically invests your money into one of five investment portfolios based on your age. You don’t have to choose the stocks -phew!
Click the Acorns logo above or this link to get started on your investment journey. You will receive a special $40 bonus as long as you set up at least a $5 or more weekly or monthly recurring investment.
Thanks for being a valued subscriber to DMD and choosing the path of financial rebellion to make your life better over time.
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Todd