The entire personal finance blogosphere is in love with index funds, and I’m here to tell you why they’re bad for your investment portfolio. This should go over well. Black sheep anyone? I realize this thesis will not be a popular one, but from my perspective as an active investor and stock picker, I’m here […]
Yesterday, I had one of the most unpleasant conversations I’ve ever had on the subject of money. I had to tell a close friend of my family that, in all likelihood, he has not saved enough money for his retirement. This is a man I’ve known since I was a kid. The same man who […]
I’ve long since thrown in the towel on retiring by 35. That was my goal as a sophomore in high school and when I look back on it, I can’t help but snicker at how naive I had been. Not because retiring by 35 is unreasonable. If anything, I believe it is more possible now than I’d originally believed. It was my strategy and ignorance of money that hindered my chances of retiring early. If I could do it all over again, I would have done things much differently.
Retirement is the culmination of everything we worked hard for throughout the first two-thirds of our lives. It is the time when we can truly start to enjoy the fruits of our labor. Well, ideally, it should be. But what if, before you even start to enjoy your rest and freedom, you discover certain financial obligations that you never even considered before. You find out too late that there are hidden expenses that you still need to pay for regularly. That will surely burst your bubbles fast on your last day on the grind.
Somewhere in your not-so-distant future is retirement, and there is nothing you can do to stop the clock from ticking. You will grow older, and each year you come closer to the last day of your 9 to 5 job. Since it is an unavoidable future, it is best to plan for it. Part of the planning process, and probably one of the first things you need to ascertain, is choosing the ideal time for you to retire.
Every now and then I hear from my cousin and we talk personal finances. He’s in his second year of college, but he still doesn’t know what he wants to do with his life. He works a little, but only part time for an hourly wage. Ultimately, he’s adrift and has no clue that some of the most important financial decisions of his life have already passed him by and he’s only a few years away from many more.
Everyone who has a retirement account or 401(k) has one goal on his or her mind, and it is SAVING. However, it is not easy to handle IRAs and 401(k)s, especially if you are poorly informed when it comes to the ins and outs of investing in them. With these retirement plans, certain circumstances and conditions are taxable, and they can change the course of your savings. Not knowing about these tax mistakes can be disastrous, but these mistakes are not unavoidable, and you can even fix some of them after the fact.
You may want to set-up a retirement account because you know you need to save but, you may be stuck on which one to choose. Two of the most sought after retirement accounts are Roth and Traditional IRA. Both are very useful tools in saving for retirement. But to choose between the two will depend largely on your needs and preferences. Although both have their benefits, they also have their share of disadvantages. Here is a list of pros and cons to help you weigh between Roth vs. Traditional IRA and see which one will benefit you the most.
Nearly every day, I hear or read about the phrase “dollar cost averaging“. Rarely, will an actual definition or chart accompany this phrase. Wikipedia defines it as: Dollar cost averaging is the practice of investing a fixed dollar amount at regular intervals (such as monthly) in a particular investment or portfolio, regardless of its share […]
Most people think of April 15th only concerns the tax filing procrastinators, but for the early retirement minded, it also means the final day to contribute to your Roth IRA/Traditional IRA. I realize that you’re likely bombarded with the April 15 tax filing deadline each year, and that’s generally all main stream media will discuss, […]
I’m one of those weird people that believe when things go horribly wrong, the opportunity to make your situation better for the long term quietly presents itself. I realize it’s not a popular thesis to propose when we’re losing thousands of jobs everyday and 8% of the American public isn’t paying their mortgage on time, but […]
If you think the stock market doesn’t behave in consistent (possibly predictable) boom and bust economic cycles, this graphic might change your mind. Going as far back as 1886, this chart indicates that bull markets and bear markets routinely plague our economy. Aptly named Supercycles, they come and go in a somewhat predictable pattern. On average, they occur every […]