If you are thinking about buying a house, you might be wondering, “how much house can I afford?” There is a significant distinction between what the bank will lend you versus what you can afford to pay. In general, a good rule of thumb is to pay less than 25% of your income toward your monthly … Read more
There are a lot of sites that help you determine how much you need to save for retirement, but I have never been comfortable with them because they usually don’t share the logic behind their calculations. Also, to really under what you need to save for your retirement, there are critical three numbers you need … Read more
Low interest rates might be good for the economy and consequently for the Stock Market; however, it is no laughing matter to the millions of seniors that depend on fixed-income investments for their retirement income. With the current Treasury yields below 1% (see Treasury.gov), investors are finding that the low interest rates make it difficult … Read more
There are four main types of deposit accounts offered by banks that you can use to save money for your financial goals. Depending on your needs, one or more of the accounts may be an ideal way for you to save your money whether you have specific financial goals or just want to build a … Read more
When you purchase a new construction home, there are several hidden costs that you might not think about. The normal costs of homeownership like mortgage payments (e.g., principal and interest), property taxes, homeowner’s insurance, and utilities are obvious. Other costs, though, can come as something of a surprise. When we bought our home (a new … Read more
Investing in the stock market is one of the most accessible and reliable ways to build wealth and generate passive income. It is statistically possible, to invest $100 a month and become a millionaire by the time you turn 65. Regardless of when you start and how much money you can invest, there is something … Read more
So you would like to retire early? Achieving financial independence and retire early is a great financial goal — aka, the FIRE movement. To get started, you want to make sure you have a solid financial foundation in place — e.g., get rid of your debt, build your savings, start your savings, etc. Ultimately, the … Read more
In the United States, it is quite common for individuals to leave it up to their employers to kick start the retirement planning efforts of the individual by enrolling them in a 401(k) or other employer-sponsored retirement plans. However, there are many plans beyond your standard 401(k) plan that could potentially do a better job … Read more
According to the IRS, the combined total contribution you can make to all of your 401(k) plans (including traditional 401(k), Roth 401(k), and individual 401(k) plans) in 2020 increases by $500 to $19,500. The catch-up contribution limit also increases from $6,000 to $6,500. However, you may be limited by what your employer allows you to … Read more
The following is a list of the nationally available highest yields CD rates. In general, certificates of deposit (CDs) are great short-term investments because your principal is protected by FDIC insurance and your interest rates are guaranteed. Moreover, you can use a CD Ladder to make your CD savings more flexible and effective. You can … Read more