Category: Education
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The Arbitrarily Invented Retirement Number
“I would retire if I had $5 million.” The number sounds precise, but it represents a feeling, not a calculation. No expected spending, taxes, housing costs, or withdrawal rate have been established. Core question: What monthly lifestyle are you trying to finance, where do you plan to live, what asset allocation do you expect to…
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Best time to start
The best time to start financial education was ten years ago. The second best time is now
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On the price of financial instruments
Eating in the restaurant instead of buying four in a grocery store is a waste of money Buying new car instead of used one is a waste of money Buying annuities or life insurance instead of stocks is a waste of money NOT At some point in life it is time to spend more and…
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Financial basics. Definitions and labels
Investments Investment is a way to grow your money by lending it to a business. As the business expands and earns more, your investment increases in value. Ideally, investments never lose money and consistently generate returns higher than the initial amount invested.Historically, investing was a privilege reserved for the wealthy, requiring a broker to purchase…
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Roth IRA and Roth 401K – start now
The thing is big. Especially if you are young and poor. You only allowed to put 7K/year per person to Roth IRA and only if you earn not a lot. And this is for a reason. It is so great that rich people would flood this account with money if given a chance. So do…