Tuesday was a big day at the bureau of labor statistics; they released the news that we’ve all been waiting for. The Consumer Price Index for All Urban Consumers(CPI-U) increased 0.6 %! Ok I have no idea what that actually means(ok maybe I do, no one should care though), but I do know how it […]
Reader Question: Investing in Real Estate Without a Down Payment, What is an REIT?
Here’s a question from a reader named Bilbo Baggins, not sure if this his real name or not 🙂 “I’m fully convinced its a great time to buy property. However, I am not ready to make that kind of commitment and am looking for investments that will reap the same kind of passive income. Something […]
Investing in I Bonds: An Intro to I Bonds for Young Investors
For an update on I bonds rates as of(10/18/12), please see: November 2012 I bonds rates are announced: 1.76%. Believe it or not, the money in your savings and checking accounts is actually losing money. It doesn’t even matter what bank you have. Whether you bank online, or brick and mortar; they’re all losing […]
Part 3: How To Rebalance Your Retirement Accounts
[This is the third article in a three part series about re-balancing, the first article covered why to rebalance and the second covered when to rebalance your retirement accounts] Even though asset allocation will determine over 90% of your returns, it’s important to periodically rebalance your retirement accounts. I’ve shown why rebalancing will reduce your […]
Part 2: When to Rebalance Your Retirement Accounts
[This is the second article in a three part series about re-balancing, the first article covered why to rebalance and the last article will cover how to rebalance your retirement accounts] A year in the life of the stock market can be brutal. Daily swings up and down are unpredictable at best, but we’ve seen […]
Part 1: Why Rebalance Your Retirement Accounts
[This is the first article in a three part series about re-balancing, the next two articles will cover when to rebalance and how to rebalance your retirement accounts] A crucial part to a successful investment portfolio requires that you occasionally rebalance your portfolio. Due to the volatility of the market, the asset allocation you select might change […]
Asset Allocation Guide: Why to Invest in International Index Funds
If you followed the market from 2000-2009, you’ll know that US stocks got hammered. Investing in international stocks wouldn’t have saved you from a period like that, but it could have helped. International stocks provide some much needed diversification and tend to reduce your portfolio’s overall volatility. In fact, since international funds make up 60% […]
Why Borrowing From Your 401k is a Bad Idea
A reader writes in: “Can you talk about when to take a loan from your 401k? I took one a while back and I think it would be a good topic for discussion.” There aren’t many loans out there that allow you to borrow without a credit check and pay yourself interest, but that’s what […]
My Tax Efficient Investing Plan
If the Mayans are wrong and Dec 21, 2012 doesn’t bring the end of the world, taxmageddon is still headed our way in 2013. Income taxes are slated to go up for every single tax-paying American unless congress and Obama act. Regardless of whether you’re for or against the proposed tax increase, it’s causing a lot of […]
Reader Question: Health Savings Account Explained
Reader JY writes in, “I was wondering if you have written anything regarding the Health Savings Account and high deductible health insurance plans. I have recently signed up for this through my new employer as the idea sounded really great. Previously I was paying for one of the more expensive plans, the Kaiser HMO. Now […]
401k Plans Only Work if you Contribute
From time to time, I’ll read about how bad 401k plans are for investors like you and me. Apparently, most people don’t even realize they’re paying fees on top of other fees to invest in certain funds. And while a minority of companies do it right, by providing low cost index and ETF funds, most, […]
Is your Asset Allocation Too Risky?
Giving advice on asset allocation is one of the toughest things a financial advisor can do. How are they supposed to know how much risk another person can take? Asset allocation is an investment strategy that aims to diversify one’s portfolio holdings based on risk tolerance and time frame. Riskier assets generally include stocks (particularly […]
Should Young Professionals Invest in Dividend Stocks?
With fixed income investments like bonds and CD’s returning decade lows, some investors have turned to dividend stocks as a way to receive predictable income at regular intervals. Dividend stocks usually refer to companies that have a history of paying out dividends to shareholders. In fact, each year, the S&P 500 publishes a list of […]
Facebook IPO, Student Loan Debt Bubble and My Weekly Blog Round-Up
Facebook’s IPO The world’s largest social media site said Thursday that it had raised $16 billion for itself and early investors through an IPO that values Facebook at $104 billion. Starting friday, investors like you and me will be able to purchase stock in the social network giant. CEO Mark Zuckerberg is expected to […]
How a Mutual Fund’s Expense Ratio Impacts Your Bottom Line
There are literally thousands of mutual funds out there and many of them claim to be diversified, low cost, low fee, etc. But if there’s one thing that has the most direct impact on a fund’s return, it’s the expense ratio(ER). When comparing similar funds, I primarily look at the expense ratios first and foremost. […]
Help Me Buy Something with My Tax Refund
I just received my yearly merit increase: a whopping 3% to stay right in line with inflation. Don’t get me wrong, I’m very appreciative of the extra money, but in the grand scheme of things, how much will this improve my life? Will I be able to buy more, spend more, save more? In the […]
Reader Question: What Should I Do With My 401k?
David writes in, “I waste my money on having a personal Financial Advisor w/ Merrill Lynch. He gets 1% of everything invested annually. I cut him a quarterly check and he picks which mutual funds to invest in. The market has been sucking so my mutuals are only up about 4% cumulatively since inception. I don’t […]
What To Do When Your Company Offers a Roth 401k
It seems like every few years the government introduces a new retirement plan. Even though it’s getting hard to keep track of all the different types, at a minimum, a savvy investor should have a basic understanding of each option and whom it can benefit most. The Roth 401k was authorized by the IRS in […]
Why Everyone Should Have a Roth IRA
While a 401k is probably the most popular and well-known type of retirement account, there are a few others you may have heard about. In this article, you will learn what a Roth IRA is, and how it’s tax-favored status can be leveraged by investors at any income level. A Roth IRA is the only […]