investing

Bear Markets Will Make You Rich

10.10.2014
bear market will make you rich

Have you been following the stock market? Usually, I don’t pay much attention to the stock market and only check the price when I update my net worth spreadsheet. I do that a few times per month. Lately, I’ve been watching the local morning news to get the weather report. October is a weird month because one day we’d get sunny 80 degree weather and the next; we’d get a cold wet day. I need to see the morning weather update so I can dress RB40 Junior appropriately. He loves shorts so that’s his first choice, but shorts won’t work […]

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Is Roth better than Traditional IRA/401(k)?

09.17.2014
Is Roth better than Traditional IRA/401(k)?

Last week, I was researching for a Roth 401(k) article and came across a Roth IRA study from T. Rowe Price. Basically, the study concludes that the Roth account is the better choice for most investors. You’ll have more money unless your tax rate is much lower in retirement. If you’re 55, then your tax rate will have to drop by 7% for the Traditional IRA to beat than the Roth IRA. If you’re 25, the Traditional IRA basically can’t beat Roth IRA. Your age makes a difference because the younger you are, the more time your Roth account has […]

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What does it mean to own bond mutual funds in your retirement account?

08.18.2014

Today, we have an article from Roy, one of our regular readers, who is an expert in fixed income (bonds.) This is great because I really don’t know much about bonds. I know I’m lending money out and I’ll get some interest. I know I need to allocate 20% of my investment asset in bonds according to my risk tolerance. I read that’s it’s a good idea to avoid long-term bonds for now because the interest rate is bound to go up at some point and drive the bond funds price down. So currently, I have 20% of my investment portfolio in […]

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Save More for College with the Coverdell ESA

08.08.2014
Save More for College with Coverdell ESA

One of my missions in life is to pay for our kid’s college education. My parents helped me with my education and that paved the way for our financially stable life. I know college isn’t right for everyone, but let’s save first and if he doesn’t attend college, we can always gift the account to other kids in the family or even earmark it for future generations. It’s better to sacrifice now and save up front than for our kid to be saddled with a big debt load. College cost skyrocketing Do you know how much college will cost in 15 […]

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