Tagged With: investing

Do you want to invest in a target date fund?

In 2006, Congress passed the Pension Protection Act. It’s a scintillating read. Among much else, it provided statutory authority for employers to enroll workers in retirement plans automatically, and also established criteria of “safe harbor investments” to protect employers from liability that comes from automatically enrolling employees. Prior to this, people weren’t automatically enrolling in … Continue reading »

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Am I making a mistake by not rebalancing my portfolio?

I believe that investing is a crucial step in your plan to become financially secure. So I recommend putting as much as you can into an investment portfolio like a 401(k) at work, or (especially) a Roth IRA that you create yourself. 15% of your pay is a good round number. But allocating money is … Continue reading »

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More lying with numbers: What it really means to be half-wrong about interest rates

It is possible to lie with numbers, or at least mislead. We’ve seen this before when talking about how many hours you have available to work in a given week. It’s not the numbers that are doing the lying, of course; it’s the interpretations we make with them. When Einstein added his famous cosmological constant … Continue reading »

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Here’s when we really want to be celebrating National Save For Retirement Week

I logged in to my Vanguard account earlier this week, and found this admonition: I must confess, I didn’t know about this celebration week. For this I can only apologize, although to be fair there are plenty of celebration days, weeks, and months to have to remember. For example, the same week was also National … Continue reading »

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How to open a Roth IRA with Vanguard

I’ve made no secret about a number of things: Retirement planning is something we need to do, and right now. The best way for everyone to plan for retirement is through investing. A Roth IRA is an investment vehicle that should be a part of everyone’s portfolio, if possible. A Roth IRA, unlike a 401(k), … Continue reading »

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Is retirement possible?

Retirement is a scary thing to think about. Many people think that they’ll never be able to retire, that they will be forced to work until they die. But it’s worth taking a look at what retirement is and whether it’s really as impossible¬†as it seems.

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Financial cage match: ETFs versus mutual funds

I want everyone to be an investing expert. Thankfully, I also believe that simplicity in investing is best. Create a Roth IRA, put money into low-cost index funds, and repeat this every month. When I say “low-cost index funds”, I’m talking about a special class of mutual funds. These are no-load, passive funds, designed to … Continue reading »

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Day trading, or forgetting what money is really for

I was in college during the “dot-com” boom. My lab partner, a cocky dude to be sure, said he spent a lot of his days day trading. And he seemed to be doing well enough, though he never elaborated. While I don’t know if he had any particular qualifications or experience in the field, I … Continue reading »

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Financial Cage Match: Paying down a mortgage versus investing

This is another entry in the Financial Cage Match series, where I look at two competing financial priorities and see which one comes out on top. Here’s another entry: Paying off student loans versus investing for retirement. WARNING: This post contains math. So we now know that holding on to a mortgage because of the … Continue reading »

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When to max out your Roth IRA contributions

  My intuition isn’t always correct, and I enjoy being confronted with facts that don’t back up my assertions. And this post is one of those situations. Sort of. So let’s talk about funding your Roth IRA, and assume you can max it out. As of this year, unless you hit certain income restrictions, you … Continue reading »

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