Pensions are a great benefit to receive after you retire. Not many organizations offer pensions anymore. It can get very costly. If you do get a job that offers one don’t take the benefits of a pension lightly. Pensions is a powerful tool to attract workers because it is rare and to keep employees at an organization until they retire for longer retention. If you join a company or organization that offers a pension at a young age you may…
What’s the one thing that you don’t have a lot of and you can’t control? It’s time. You can’t speed up time, stop time, or slow down time. Time is finite. Your time on this planet cannot be extended. It’s such a limited resource that you don’t want to waste time. When you hear about the power of compounding, one of the necessary components for your money to grow is time. Compounding money grows over time, not overnight. The longer…
Not too long ago I purchased a plug-in hybrid vehicle because I wanted to try out how good the electric side of the car is. I loved it so much I decided to get a fully electric Tesla last year. I had the notion that driving a Tesla, an EV car, is going to give me so many benefits such as saving on gas, paying less on maintenance, and helping the environment. In my previous posting, I highlighted how much…
The stock market has its waves of ups and downs. Many factors can affect the market’s direction. Economy, labor market, inflation, unemployment, political, and health news are just a handful of examples that can affect the stock market or individual stocks. Another recent example that everyone probably remembers is the covid lockdown and how the stock market temporarily crashed. As I’m writing this article, McDonald’s came into the spotlight with a potential health matter, e.coli, that hospitalized a number of people…
My last article I wrote about index funds and ETFs. These vehicles make it easier to invest in a broader scope than purchasing individual stocks. I’ve been a long time individual stock investment type of person and I’ll still continue that. After doing some initial research into ETFs and index funds, I decided that I will start investing with my first ETF purchase. An ETF is like an index fund except that it’s traded throughout the day like an individual…
There’s a lot of information folks are talking about and encouraging to invest in index funds and ETFs. These are considered as pooled investment vehicles. In other words, these are investment vehicles where you can invest in multiple equities simultaneously instead of having to invest in each individual equity. As an example, if you wanted to invest in the S&P 500, which is the largest 500 companies on the US stock exchange, you could buy shares for each of the…
When should you be learning about finances and when do we actually learn about finances? When I was growing up no one taught me directly about finances. I grew up watching my parents how they handled money with their own a small business and seeing how they operate it. I learned how to count cash, write checks, and deposit cash and checks. A little bit of accounting you can say. This was great exposure but it is just the tip…
The interest rates are expected to get cut by the Federal Reserve. Many have been waiting for this moment because the cost of borrowing money will get cheaper. When interest rates get cut so does the rates for mortgages, car loans, and your savings account rate. You can get an auto loan at a lower rate but don’t forget that your ability to collect interest on your savings account is affected also. I’m not in the market to get a…
Required Minimum Distributions (RMDs) is the minimum amount that the IRS requires you to withdraw from your pre-tax retirement funds annually when you hit age 72. This is not an option. When you withdraw from your pre-tax accounts, it counts as income and you will have to pay taxes. The point of investing your money pre-tax is that you defer paying taxes later on. Well, you will start to be forced to start withdrawing at the age of 72 or 73. If…
How do you know how much you’re going to need in the future, whether it’s for retirement or early retirement? It’s simple but not as simple. What are your expenses going to be? What income and/or cash flow will you have? Two simple questions but not that easy to answer. Plus, who can predict what their expenses will truly be? One key to financial independence success is to know your expenses. Recently, I had to help my mom, who is…