Before you dive into investing it is important that you understand what type of account to invest through. The investment vehicle that you are going to be taking on your journey to financial freedom is a very important piece of the overall puzzle. Make sure you first take the time to find the best account for you ahead of getting started with investing.
After you have established the best account to use you can deposit money and get ready to invest! This is exciting because there are multiple steps you need to take before this point like establishing an emergency fund and paying down your debt. The worst thing you can do is invest to soon and then end up pulling your money out of the market at the wrong time or face paying hefty fees by withdrawing from tax advantaged accounts. If you are investing in a 401(k) your options will be limited to the plan that your company has provided. However, if you are investing in an IRA or taxable brokerage account you will have many options. You have the power to invest in any public company listed on an exchange. So, what is the best way to go about this?
Continue reading GETTING STARTED WITH INVESTING – ACTIVE VS. PASSIVE MANAGEMENT
Most millennials have a pretty unique view of the financial markets and investing. Many of us witnessed our parents go through the financial crisis which lead to layoffs and net worth’s shrinking back in 2008. This started us off with a negative view of how financial markets and investing works. So when millennials started entering the workforce in masses those who could save money did because we had just witnessed how our jobs could disappear. The positive this created was that we learned to save for tomorrow but many were to scared to begin investing. Meanwhile the market came roaring back and those who stayed invested or decided to begin investing were rewarded handsomely.
Take a look at the S&P 500 returns since the great recession.
Continue reading “THAT’S A BIG BULL”
Every year America has a national holiday to celebrate our independence. Over 200 years ago enough people were tired of being mistreated that they fought for our independence and ultimately signed the Declaration of Independence. Today everyone seems to be more comfortable than ever to conform and do what they are told even if it involves a bad deal. This is especially true in the world of personal finance. Many people are either not willing to learn or are too scared to do anything different then what their peers and family have done in the past. It is time to channel your inner Thomas Jefferson and draft your own personal declaration of financial independence!
Now before I get into why most financial advisors are not worth the money, I want to make one thing clear, there are times when you benefit by having an advisor on your team. I am not here to bash anyone or demonize an industry, I just want to inform the normal hard-working individual trying to do the right thing with their money. Hopefully this article can give you a better understanding of what type of advisor to use if any at all.
Continue reading CELEBRATE THE FOURTH OF JULY BY FIRING YOUR FINANCIAL ADVISOR!
In part 3 of the investing basics series we will discuss the last major type of investing account, the taxable brokerage account. In the previous articles, we discussed the 401(k) and the IRA accounts, these are government sponsored accounts that use tax incentives to try and get Americans to invest. On the other hand, a taxable brokerage account is as simple as the name implies, it is taxable.
Continue reading INVESTMENT VEHICLES: TAXABLE ACCOUNTS
In part 1 of investing basics, we discussed different types of IRA’s or individual retirement accounts. The second account or investment vehicle used by many Americans is the 401(k). This is an employer-sponsored plan that is offered by many employers. Once again the best source of information on this is going to be the IRS, and it can be found here.
Let’s get into the details.
Continue reading INVESTMENT VEHICLES: 401(k)
“The working man is a sucka,” a quote from a classic scene in A Bronx Tale. If you haven’t seen this movie, it should be next on your list after reading this article and sharing it with your friends and family. To put the line in context, Robert De Niro is having a heated conversation with his young son who has been hanging around some mobsters running errands and making extra cash. His son claims that the “the working man is a sucka dad” in which Robert De Niro says “it don’t take much strength to pull a trigger but try to wake up every morning day after day and work for a living then we’ll see who’s the tough guy the working mans the tough guy”. This is a brilliant family, in my opinion, they both have excellent points, and we should heed their advice.
Why “the working man is a sucka”
Think of the wealthiest people you know, how did they accumulate their fortunes? Most understood two things early in life, and it has given them a massive advantage ever since.
Continue reading WORKING FOR A LIVING IS FOR SUCKAS’