fbpx

Different Types of Saving and Investment Vehicles

There are many different financial products out there that can help you achieve your saving and investing goals. Each type is better at meeting specific financial objectives, while others are better for different purposes. When you start investing, it is a good idea to become familiar with the more common ones. I am an experienced … Read more Different Types of Saving and Investment Vehicles

Tax-Efficient Retirement Withdrawal Strategy

Tax-Efficient Retirement Withdrawal Strategy 3

When you stop working and have to start withdrawing money from your retirement accounts, you have to decide the best way to withdraw money from different accounts. Do you take money out of your tax-free accounts like Roth IRA and Roth 401(k) first? Or do you withdraw from your tax-deferred accounts like Traditional IRA and … Read more Tax-Efficient Retirement Withdrawal Strategy

Asset Location: Best Accounts for Different Investments

Asset Location: Best Accounts for Different Investments 9

Asset Location is a tax-efficient investing strategy to help you minimize taxes and grow your investments faster by holding investments in the best-suited investment accounts.  This strategy leverages the fact that investments in Roth IRA and 401(k) are tax-free, and investments in Traditional IRA and 401(k) are not taxed until the money is withdrawn. For … Read more Asset Location: Best Accounts for Different Investments

Compound Interest Formula and Examples

Compound Interest Formula and Examples 17

One of the most powerful forces in finances is compound interest. Compound interest is interest that is paid on the principal and also on the interest that previously earned on your investment. This helps you grow your investment at an accelerated rate. On the other hand, compound interest can work against you — for instance, … Read more Compound Interest Formula and Examples

Compound Annual Growth Rate (CAGR) Calculation and Examples

Compound Annual Growth Rate (CAGR) Calculation and Examples 21

You may have come across references such as the S&P 500 has grown 10% annually for the past 30 years or something to that effect. You may wonder what that means and where did they get that number. When someone mentions an annualized return, most likely he is referring to the Compound Annual Growth Rate or … Read more Compound Annual Growth Rate (CAGR) Calculation and Examples

18 Common Retirement Investing Mistakes and How to Avoid Them

18 Common Retirement Investing Mistakes and How to Avoid Them 33

Learn from your mistakes is good advice, but learn from other people’s mistakes is even better. I’ve been investing since 1996. In the process, I have learned a lot, mainly from trial and error. Today, I’d like to share some of the mistakes I’ve made when I was a newbie investor, along with some pitfalls … Read more 18 Common Retirement Investing Mistakes and How to Avoid Them

What to Do Before and After the Stock Market Crashes

What to Do Before and After the Stock Market Crashes 43

When the stock market hits a rough patch after a long Bull Market, it might cause you to think “Should I get out of the stock market?” and “What should I do with my money?” The answer is it depends. Every year, you should be evaluating your needs and adjust your investment strategy to fit … Read more What to Do Before and After the Stock Market Crashes

The 80 Percent Rule for Retirement Explained and Improved

The 80 Percent Rule for Retirement Explained and Improved 49

In How Much Money Do You Need to Retire, I mentioned using the 80% rule to calculate retirement needs. You may have heard this rule before; here is a variation of it: You need 80% of your pre-retirement income during your retirement. Where Did the 80% Number Come From? The theory behind the 80% number is that … Read more The 80 Percent Rule for Retirement Explained and Improved