Money Matters: A Beginner’s Guide to Diverse Investment Categories

2024 was an incredible year for the stock market, with index funds gaining over 20% and the "Magnificent 7" stocks soaring by more than 48%. While part of this growth can be attributed to the effects of high inflation, it’s bittersweet for me as I didn’t invest much in the stock market during this time.

Now, with stock prices at such elevated levels, many people are anticipating a possible market correction in 2025. This makes navigating investment decisions even more challenging.

To address this, I’m starting a new blog post series today (titled Money Matters). Through this series, I aim to explore foundational investment concepts and strategies to better understand the market. I hope readers will find this journey insightful and empowering, helping us all avoid becoming victims of inflation and make more informed financial choices.

Today, we start by understanding the diverse investment categories.

Investing can feel like navigating a vast and intricate web of choices, but understanding the different categories of investments can demystify the process. This guide offers a concise overview of major investment options, serving as the perfect foundation for those eager to start or refine their investment journey. Let’s dive in!

1. Equity Investments

(Public) Equity investments involve owning a stake in a company. These include:

• Individual Stocks: Shares in publicly traded companies, where you directly own part of the company.

• Mutual Funds: Pooled funds managed by professionals that invest in a diverse range of stocks.

• ETFs (Exchange-Traded Funds): Funds traded like stocks on an exchange, offering diversification at a lower cost.

• Index Funds: Designed to mirror the performance of specific market indices like the S&P 500.

• Dividend Stocks: Stocks that pay regular dividends, providing income in addition to potential value appreciation.

2. Fixed-Income Investments

Fixed-income options offer more stability than equities by providing predictable returns. Common types include:

• Bonds: Loans to governments or corporations in exchange for interest payments.

• Treasury Bills (T-Bills): Short-term government securities with low risk.

• TIPS (Treasury Inflation-Protected Securities): Bonds adjusted for inflation.

• Certificates of Deposit (CDs): Bank products with fixed terms and interest rates.

• Fixed-Income Funds: Mutual funds or ETFs focused on bonds.

A fake Lannyland Bond Certificate

3. Cash and Cash Equivalents

Cash-equivalent investments are highly liquid and low-risk:

• Savings Accounts: Secure accounts offering modest interest.

• Money Market Accounts: Similar to savings accounts but with higher interest rates and some restrictions.

• Money Market Funds: Investments in short-term debt instruments like Treasury Bills.

4. Real Estate Investments

Real estate offers tangible investment opportunities:

• Direct Real Estate: Ownership of physical property, such as rental homes or commercial buildings.

• REITs (Real Estate Investment Trusts): Companies that own or finance income-generating properties, offering real estate exposure without direct property ownership.

• Crowdfunding Platforms: Pooled investments in real estate projects.

5. Commodities

Commodities are physical assets traded in markets, including:

• Gold and Precious Metals: Used as a hedge against inflation and market volatility.

• Energy Commodities: Investments in oil, natural gas, and renewable energy.

• Agricultural Commodities: Crops like wheat, coffee, or cotton.

6. Alternative Investments

Alternatives diversify your portfolio beyond traditional stocks and bonds:

• Private Equity: Investments in private companies or buyouts.

• Venture Capital: Funding for startups and high-growth businesses.

• Hedge Funds: Managed funds that use diverse strategies to maximize returns.

• Cryptocurrencies: Digital currencies like Bitcoin and Ethereum.

• Collectibles: Rare items such as art, coins, or vintage cars.

Blackstone, an alternative asset manager company

7. Derivatives

Derivatives derive their value from other assets:

• Futures: Contracts to buy/sell an asset at a future date and price.

• Options: Contracts giving the right (but not obligation) to buy/sell an asset at a specific price.

• Swaps: Agreements to exchange financial obligations (e.g., interest rates).

Movie Trading Places where they made it big with Futures

8. Foreign Exchange (Forex)

Forex involves trading global currencies. Investors can:

• Trade Currencies: Profit from fluctuations in exchange rates.

• Invest in Currency Funds: Pooled funds focused on forex markets.

US Dollar vs Euro Last 5-year

9. Structured Products

Structured products are complex financial instruments:

• Annuities: Insurance products that provide income streams.

• Mortgage-Backed Securities (MBS): Investments backed by home loans.

• Collateralized Debt Obligations (CDOs): Pooled debt instruments repackaged into securities.

10. Retirement Accounts

These accounts are designed for long-term growth:

• 401(k) or 403(b): Employer-sponsored retirement plans with tax advantages.

• IRAs (Individual Retirement Accounts): Personal retirement savings with tax benefits.

• HSA (Health Savings Accounts): Personal health-related savings with tax benefits.

• Pensions: Employer-funded plans providing guaranteed retirement income.

11. Social and Impact Investments

Investments aimed at social or environmental good:

• ESG Funds: Focused on environmental, social, and governance factors.

• Green Bonds: Funding environmentally friendly projects.

• Community Investments: Supporting underserved or disadvantaged areas.

12. Other Niche Investments

Unique options for adventurous investors:

• Peer-to-Peer Lending (P2P): Loans funded by individual investors.

• Franchises: Ownership of franchised businesses.

• Timberland and Farmland: Investments in land for agriculture or timber.

• Insurance-Linked Securities (ILS): Tied to insurance risks like natural disasters.

This overview scratches the surface of each investment category. In upcoming posts, I’ll dive deeper into each, offering insights on risks, benefits, and strategies to maximize your investment success. Let’s build a future of informed, confident investing together!

It's never too late to start investing.

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com

2025 New Year Resolution

It took me too long to realize that one's health, both physical and mental, is the most critical asset in life. Stress, I've learned, is the ultimate enemy of well-being. Without good health, you can't work hard or enjoy life's pleasures. So, as we approach the time for New Year's resolutions, here is my commitment for 2025:

I plan to hug myself every day. Yes, you read that correctly. Each day, I'll embrace myself in various ways. Self-hugging can strengthen muscles, increase mobility, reduce stress, and promote gratitude and mindfulness—key ingredients for success, according to numerous articles I've found inspiring. I encourage all of you to try it and share your experiences!

The Power of Physical Touch

Physical touch is essential for both psychological and physiological well-being. Research indicates that physical contact, including self-hugs, helps reduce stress, alleviate pain, and boost feelings of happiness and security. When we hug ourselves, it's more than a simple squeeze; it's a reminder that we deserve care and love.

Daily Self-Hugs Options

Let’s explore some ways you can incorporate self-hugs into your daily routine:

Standing Hugs

1. Hug your arm: Bring your arm across your chest and squeeze gently with affection.

2. Hug your back: Reach your hands behind your back. If you struggle to clasp your hands, hold a towel between them for assistance.

3. Hug your knee: Maintain good balance with a straight back, embracing your knee for a solid squeeze, which also strengthens your ankles.

4. Hug your legs: Relax your back and rotate your hips. If this is challenging, try hugging one leg at a time with slightly spread legs.

Chair Sitting Hugs

1. Hug your knee: Sit up straight, place the foot of the bent leg on the chair, and pull your knee toward your torso.

2. Hug your thigh: Feel your glutes engage by bringing your thigh toward your body without bending forward.

3. Hug your shin: Lean forward to embrace your shin. Go lower to hug the other shin if your body lets you.

4. Hug your legs: Bend forward to touch your head to your knees and reach your hands toward the floor.

 

Floor Hugs

1. Hug one foot: Bring your head towards your foot while keeping your back straight.

2. Hug both feet: If this is difficult for you, sit with bent knees, hug your feet, then scoot back to try to straighten your legs.

3. Hug your knee: Similar to the standing version but easier since you don’t need to balance.

4. Hug both knees: Give a final squeeze to feel the stretch in your back.

5. Hug your thigh: Draw your thigh in slowly and exhale deeply.

Conclusion

As we step into the new year, let's focus on resolutions that enhance our well-being and resilience. By literally embracing ourselves, we combat stress and cultivate a loving relationship with the most important person in our lives—ourselves.

Call to Action

Join me on this self-care journey and share your self-hug experiences or photos. Let’s make 2025 a healthier, happier year!

If you want something, just get it yourself. Don't wait for someone to get it for your birthday or Christmas. It aren't gonna happen.

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com

Daily Battles: The library “Photos Library.photoslibrary” could not be recognized.

Got an error when I tried to open the Photos app on my Mac (M3 Max Sonoma 14.6.1) today:

The library could not be opened. 

The library "Photos Library.photoslibrary" could not be recognized. 

My best guess is that the library file got corrupted during Mac System Updates. Did some quick research and found the solution.

Solution:

Step 1: Try to use the Mac Photos Library Repair Tool to repair it.

Hold down the Command and Option keys, click to open Photos, and then click Repair. You might be asked to enter your user account password.

Step 2: If the repair fails, simply click Open Other.

Step 3: Click Create New to create a new photo library.
Especially if you don't see anything listed.

Step 4: Create the Photos Library 2 library.

Your Mac might not let you save it as the Photos Library (the default one) because that one exists and is corrupted.

Step 5: Go to Settings and click "Use as System Photo Library" (the grayed-out button in the screenshot below).

Step 6: You can choose to sync your iCloud Photos if you desire.

That's it. Now your Photos App should be as good as new, and hopefully, your day gets better from here!

Leave a comment if you find my blogs useful. You can also follow me on Twitter for more useful tips and tutorials!

There's always a way! 







BTW: The easiest way to remember my blog address is blog.lannyland.com

The Outcast: Volume 1 Chapter 1 (2)

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Volume 1 Eastwood is All Boulders

Chapter 1 Parade at the Bell-Tower Street (2)

"Soap opera is all a commoner need!" Bao-Longtao thought to himself as he strode down Bell-Tower Street in the cold breezes and glanced at the indifferent residents drinking in taverns around the corners of the street.

 

Bao-Longtao, Deputy Chief of the Riverwest State Second District Police Department, was also one of the Eastwood Boulders. His face was always as stern as a boulder. For the gang members haunting the Bell-Tower Street neighborhood, this face represented immense awe and terror. Whenever he patrolled Bell-Tower Street, those black-market wild-buffalo-meat peddlers would scatter at the speed of a galaxy battleship. With his sharp-looking black police uniform and the seven subordinates following behind him, they always made an extraordinary scene.

 

Bao-Longtao suddenly remembered that there were also three reporters by his side today. Feeling a jolt in his heart, he tightened his collar button out of habit and then turned around steadily to face the reporter, a young woman holding a microphone in her hand. A forced smile slowly spread across his face as if the exterior of a boulder had suddenly split open.

 

"Public safety at Bell-Tower Street has always been outstanding …," Bao-Longtao said in a calm voice to the best of his abilities. He didn't want to leave the slightest impression of carelessness. This assignment had come straight from the Riverwest State Governor's Office. Something Deputy Chief Bao dared not to handle hastily.

 

Sensing the Deputy Chief's uneasiness, several aides from the police station's public relations office quickly took over and carried on the conversation with the reporters. Bao-Longtao secretly heaved a sigh of relief and shook his head gently.

 

He had served in the Eastwood Grand District for thirteen years, still seven years shy from completing his term stipulated by the Federation Government's Eastwood-Aid Act. However, he knew he wouldn't stand another seven years at a place filled with deathly staleness. Would he eventually resort to watching TV to kill time every day, just like those jobless miners?

 

The Federation had stringent regulations. Although promotions usually came quicker at the Eastwood Grand District compared to other places, transferring to the Capital Star Circle or the Westwood Grand District was only possible after a lengthy time of service. Bao-Longtao did make acquaintances with a few outer circle members of the Eminent Families. Still, he knew all too well that none of those cautious Families would spare any effort on him, an insignificant Deputy Chief.

 

A better option for him would be to spend more effort on political achievements for his post. That was also part of his consideration when he decided to show these reporters around Bell-Tower Street personally.

 

……

……

 

The tiny trace of frustration on Deputy Chief Bao's face didn't last long and quickly turned into astonishment!

 

Even the curious questions from the female reporter skipped his ears. His murderous gaze shot right over the female reporter's shoulder and landed at the junction where four alleys joined Bell-Tower Street.

 

It was hard for the reporters to miss the Deputy Chief's unusual reaction. His face was now purple and all tensed up. It looked like a boulder at the bottom of the river covered by decades of moss, ready to transform into a terrifying monster at a moment's call.

 

Glancing over the direction of Bao-Longtao's gaze, the reporters couldn't help but gasp, and the female reporter even uttered a cry.

 

Only a moment ago, a cool breeze still swept along the peaceful street. But in the next moment, the sounds of countless footsteps suddenly resonated in the streets. The steps were not in sync, nor were they as intense as drumbeats, but the sounds were so dense that anyone could tell it had to be from a large crowd marching out.

 

The noisemakers emerged at Bell-Tower Street in no time. Mobs of people stormed out from the four alleys all at once and quickly occupied the majority of the intersection and sidewalks. The entrance was so dramatic that those Eastwood residents occupying themselves with coffee and alcohol looked out of the window in shock. And the faces of the police officers and the reporters all turned pale.

 

The mob streaming out of the four alleys consisted of only young boys. Even the oldest amongst them were merely 15 or 16 years of age. Some of the younger ones still had blemishes of mud on their faces, making it hard to tell whether they were over ten or not.

 

The boys wore various clothes but with one particular trait in common, disturbingly. Each one wore something black: black jackets, black sweaters, or black t-shirts. One boy probably failed to find a black piece of clothing from home. Instead, he wore a blue miner's work coat covered by black tar from mining, which probably had not been washed for years.

 

There were over one hundred boys, all in black, funny-looking yet oppressing. They came out of nowhere, walked to the middle of Bell-Tower Street, right in front of Deputy Chief Bao and the reporters.

 

Deputy Chief Bao took a step forward and stared furiously at the boy in the very front of the group. He knew that boy.

 

The female reporter took several steps back instinctively and cautiously peeked at the boys' faces, wondering what these boys in black were here for and whether her safety was at risk.

 

"What are you doing here? You should all be at school right now!" Deputy Chief Bao roared sternly.

 

Usually, such a roar would have any gang leader of the Bell-Tower Street scatter in terror. But this time, all the boys only responded with disdain. No one reacted to his demand.

 

The leader of the boys had maturity exceeding his age. He kept his eyes wide open and stared right back at Bao-Longtao without a cringe.

 

"We have the right to petition!"

 

"Petition?" Hearing that word, the female reporter hiding behind Deputy Chief Bao felt a sudden surge of excitement. Sticking her heavily makeup-covered face out from hiding, she asked in a quivering voice, "What for?"

 

The leader boy did not answer the reporter's question right away and instead raised his fist high in the air. Seven or eight banners rose high immediately from the group behind him, each painted with big, bright, and striking words.

 

"Stop Local Protectionism!"

 

"No More TV Censorship!"

 

"We Want Federal Channel 23!"

 

"We Want to Watch Jian-Shui-Er!"

 

Even that youngest boy hastily wiped his dirty face and shouted with the utmost grief and resentment. But his still high-pitched voice and childish face made him look more amiable yet comical.

 

......

......

 

The female reporter had thought that she just got her hands on some excellent news material, but when she read the demands on the signs and banners, she found herself dumbfounded. Turning towards Deputy Chief Bao with a lost look, she asked.

 

"Who…who are these kids?"

 

Deputy Chief Bao's anger was about to explode. Taking his eyes off those silly banners, he cursed with clenched teeth.

 

"A bunch of bastard orphans!"

 

……

……

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Lanny against an apple tree. Lanny 1 : Tree 0

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The Outcast: Volume 1 Chapter 1 (1)

Read all chapters by blog label: The Outcast Posts Label.

Volume 1 Eastwood is All Boulders

Chapter 1 Parade at the Bell-Tower Street (1)

When viewed from high up in space, Eastwood was a beautiful planet. Illuminated by sunlight shining through sprinkling space dust, the blue oceans, the large patches of green wildernesses, and the numerous strikingly pale mine craters all radiated with a dim aesthetic splendor. The view looked just like a beautiful painting, only that it had been set aside for many years, covered in the dust of time.

 

However, for the Eastwood Grand District's many residents and orphans, this was only a planet full of boulders, nothing but boulders. In their once determined but now apathetic eyes, even those patches of green plains were only grass layers that covered up the true wealth and the glorious history of the planet. They had grown accustomed to seeing right through the green grass and looking straight at the mineral veins beneath, something longed for by every Eastwood resident.

 

According to the federal district zoning, Eastwood was a Level-Two Grand District, with the same prestige as the three dazzling planets in the Capital Star Circle and the Westwood Grand District. However, for many citizens of the Federation, the far-away Eastwood was a forgotten land. Only on rare occasions, such as the 600th anniversary of the Founding of the Federation Government, the name Eastwood might still show up in celebration ceremonies. Most of the time, Eastwood had ceased to exist in the minds of the people who lived in affluent civilizations.

 

The Eastwood Grand District included only one planet, the Eastwood Planet. It might sound a bit silly, but it signified that Eastwood Grand District's name came from the Eastwood Planet. This lonely planet, which hung along the outermost region of the Triangle Galaxy, once held vital significance for the entire human civilization in the ancient past.

 

Nevertheless, ever since the various kinds of ores had been completely depleted, the Eastwood Planet gradually turned into a deserted planet. Now it only has boulders, no more ores, just worthless boulders.

 

……

……

 

Those with means to escape Eastwood had left a long time ago. They successfully acquired their residence transfer approval through either specialized skill sets, wealth accumulated over the years, or sponsorship from relatives living in the Capital Star Circle or the Westwood Grand District. Boarding the departing flights, which became lesser and lesser frequent due to energy shortage, they abandoned this withering planet, never looking back.

 

After all, only a trivial percentage of the residents were able to obtain the residence transfer approvals. The partly abandoned planet still had to support the lives of many. In a well-developed civilization, food and shelter were no longer problems people need to have a concern. Residents of Eastwood Planet still lived a peaceful life. The many social infrastructures and welfares stayed their vital roles just as before, and monetary currencies remained in steady circulation. This world still had corporations, airports, food processing factories, Mech maintenance stations, supercomputer networks, and even an armory.

 

What they could have and what they should have, the Eastwood Grand District had them all. Yet, they failed to conceal that dim feel of lifelessness. Staleness kept seeping out from every street corner, every building, and every face of those who had nothing to do other than holding their coffee cups and planting themselves in front of a television.

 

The thousands of years of ore production provided continued support to the Federation, like how a large river kept nourishing the lands along the riverbanks. But when the river gradually dried out and eventually turned into a small foul-smelling creek, the support coming back from the Federation was distinctly insufficient – because, for humankind, happiness is more than merely staying alive.

 

The long history taught the Eastwooders to be hardworking, steadfast, and unyielding. Countless mining accidents throughout the past did not make them cringe a bit. The dull present, however, filled them with sorrow and helplessness. There was no more mine to dig. There was nothing to do. Without even the possibility of a mining accident, a boring life was not the kind of life an Eastwooder would desire.

 

Hardworking and unyielding Eastwooders earned themselves the nickname "Eastwood Boulders" in the Federation. Today's Eastwooders became boulders even quieter and more indifferent, turning themselves into stone statues in armchairs and couches at home, as though they would never move again.

 

……

……

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Isaac playing Chopin's Waltz in A Minor

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The Outcast -- 27 Glasses of Wine

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Twenty-Seven Glasses of Wine is a poem that appeared many times in Maoni's book, The Outcast. Here's the translation:

Twenty-Seven Glasses of Wine

With the 1st glass of wine, shining with the sun high in the skies. Ivy vines outside of the window crept into my eyes.

With the 2nd glass of wine, rippling in the spring breeze. Gently kissing my brows were the leaves from the trees.

With the 3rd glass of wine, birds chirped Mozart, Just like love nibbling my heart.

With the 4th glass of wine, shadows climbed the windowpane. Couldn’t remember who I am I tried in vain.

With the 5th glass of wine, the lad rises up and glides, Over troves of trees waving like green tides.

With the 6th glass of wine, following a winding path I descend. Will a girl be waiting at the end?

……

With the 11th glass of wine, among the green mountains steep, Resting by a rock the tipsy graybeard fell asleep.

With the 12th glass of wine, I looked over the cliff-brink, Thousands of years had gone by within a blink.

With the 13th glass of wine, on top of a snail’s feeler, The world there was as weary as the world here.

With the 14th glass of wine, the world blurred as eyelids grew heavier, People around the bonfire were getting sleepier.

……

With the 25th glass of wine, memories of father sprang to mind, As raindrops rolled down the window and made me blind.

With the 26th glass of wine, when busy flies finally stayed, Like us hiding under leaves watching the autumn rain fade.

With the 27th glass of wine, let tears stream, I set down the empty glass together with my dream.

Here's the original poem in Chinese:

二十七杯酒

第一杯酒，阳光明媚，窗外的青藤爬进了我的眼。 第二杯酒，春风轻漾，叶梢轻拂着我的眉。 第三杯酒，鸟儿鸣叫，轻啄着我的心。 第四杯酒，影上窗楣，让我忘了我是谁。 第五杯酒，少年将飞，穿越层林叠翠。 第六杯酒，石径弯弯，尽头有位姑娘。 …… 十一杯酒，群山苍翠，有个老翁枕石而醉。 十二杯酒，临渊而窥，山崖还给年岁。 十三杯酒，蜗牛有角，彼世界如此世界一般疲惫。 十四杯酒，迷眼渐累，火堆旁的人们渐要沉睡。 …… 二十五杯酒，想起父亲，窗外的雨点坠了下来。 二十六杯酒，乌蝇不飞，若心悸的你我躲在叶下看秋雨渐衰。 二十七杯酒，弹几点泪，轻轻放下酒杯。

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Both my daughter and I are in this video about the ping pong club.

BTW: The easiest way to remember my blog address is http://blog.lannyland.com