I made a mistake with both my children’s 529 plans in 2017 and 2020, when they were each born. Instead of investing in equity index ETFs or funds in the S&P 500, I invested in target date funds (TDF). Both target date funds have significantly underperformed, costing my children $40,000+ of lost profits in just […]
The Problem With Target Date Funds: 529 Plan Case Study Read More »
Life has a way of throwing us curveballs and throwing us into emergency situations when we least expect them. You might get in an accident and slip into a coma. Or you could catch a surprise illness that takes a sudden turn for the worst. Whatever the case may be, having a death file for
The Death File And Why You Need One Read More »
Before I share the best asset class performers from 2001 – 2020, I want you to guess the following four things: 1) Of the following asset classes, the S&P 500, a 60/40 stock/bond portfolio, Bonds, REITs, Commodity, Emerging Market Equity, Small Cap, Homes, which performed best? 2) What was the annualized return for the best-performing
The Best Asset Class Performers From 2001 – 2020 Read More »
The maximum 401k contribution limit for 2025 increases to $23,500, up from $23,000 in 2024. Your 401k is one of the three legs of the new retirement stool: you, you, and you. Historically, the 401k contribution limit usually increases by only $500 every two to three years. However, thanks to inflation, the contribution limit has
The Maximum 401k Contribution Limit: What You Could Have If You Max Out Every Year Read More »
It occurred to me while writing my bestselling personal finance book, Buy This Not That, that a good percentage of you are HENRYs. A HENRY is a “high earner, not yet rich” consumer who is on the path to financial freedom. HENRYs mostly earn six-figure incomes who also save and invest aggressively. However, HENRYs often
Are You A HENRY? High Earners, Not Rich Yet Read More »
Making sure lifestyle inflation never gets ahead of our income and wealth inflation is a core fundamental in personal finance. Ideally, we want to widen that gap between income and expenses so that we can one day live free. However, what if you are already living free? Or what if your investment returns are so
Can Your Lifestyle Inflation Keep Up With Investment Inflation? Read More »
To be savvy investors, we need to learn how to connect the dots. There are so many investment clues to discover all around us if we spend time observing. One of the dots I think I’ve connected is that old school health and fitness stocks are an intriguing laggard reopening trade. I’m not talking Peloton,
Health And Fitness Stocks: The Last Reopening Trade Read More »
For the longest time, I’ve wondered whether Social Security is a dependable source of income for traditional retirees. As someone still over 22 years away from being able to collect, it’s hard to believe in the system given it is already underfunded by ~22%. Therefore, when the Social Security Administration announced the cost of living
Social Security Cost Of Living Adjustments: Keeping Up With Inflation Read More »
A Roth IRA conversion is potentially a way to save on taxes in retirement. However, for most people, converting to a Roth IRA is probably a waste of time. It is highly unlikely you will make more in retirement than while working. As a result, your tax rate will likely be lower in retirement. I
A Roth IRA Conversion Is Probably A Waste Of Time And Money For Most Read More »
At some stage in your investing journey, you may experience a situation where your investment returns surpass your active income (non-investment income, job income). The first time this happens, you may feel excited as you imagine the possibilities. But you likely won’t quit your job just in case it was a fluke. However, after several
Investment Returns Versus Active Income: When Work No Longer Matters Read More »
