Investing the right way
There is a lot of debate in finance about the Efficient Market Hypothesis, and to what extent it applies to real markets. I’m generally an efficient markets proponent, but that’s not what this article is about. What I’d like to discuss is a lesser known side-effect of the Efficient Market Hypothesis that no one really talks about.
I often encounter questions about the best strategies for managing retirement savings. One common query is whether employees should transfer their 401(k) savings into an Individual Retirement Account (IRA) after retiring or switching jobs. The short answer is yes, and in this article, I will explain why this is generally a smart move for most people. I will also discuss the benefits of an IRA, the process of transferring your 401(k), and some potential pitfalls to avoid.
This post is very off-topic for me, but I just spent a lot of time trying to figure this out and figured I would make a post here in case it could help someone out in the future. Dig in!
Continue reading “Adding a Private Git Dependency to a render.com Project”Tax strategy is one of the three pillars of sound investment strategy, along with minimizing fees, and diversification. In this article, we will explore a wide range of tax-advantaged investment vehicles, including 401(k) and 403(b) plans, IRAs, SEP plans, HSAs, and 529 plans for children. We will also compare and contrast Roth and Traditional tax treatments and discuss advanced strategies such as tax loss harvesting, backdoor Roths, and more. Finally, we will delve into how tax considerations can inform portfolio allocation, including placing higher risk, higher return assets in tax-advantaged accounts and lower returning assets in taxable accounts.
The S&P 500 index, a widely followed benchmark of the U.S. stock market, has long been considered a reliable indicator of the overall health of the economy. However, a closer look at the index reveals a surprising concentration in big tech stocks. This phenomenon is not only a reflection of the growing dominance of technology companies in the market, but also a result of the market-weighted structure of the index. Let’s explore the reasons behind this concentration and discuss the potential risks it poses to investors.
For many individuals, saving for retirement is a top priority. One popular savings vehicle is the Roth IRA, known for its tax-free growth and withdrawals. However, not everyone is eligible to contribute directly to a Roth IRA due to income limits. Enter the Backdoor Roth IRA and Mega Backdoor Strategies, which provide high-income earners with an alternative path to tax-advantaged retirement savings. In this article, we’ll explore these strategies, their benefits, and potential pitfalls.
I frequently get asked about investment options that parents can establish for their children. It’s an important question, and there are several options available. In this article, I’ll compare and contrast some of the most popular types of investment accounts for children that parents can set up. For this exercise, I’ll focus on 529 plans, UTMA/UGMA accounts, Roth IRAs, and regular taxable brokerage accounts.
The biggest financial headlines in 2022 have been about poor market performance amidst high inflation. This has led many investors to search for ways to protect the value of the savings from eroding under inflation. There are 3 primary ways to guard against rising prices as a US-based investor: 1) Invest in equities or equity-like securities, 2) Invest in I-bonds, or 3) Invest in TIPS. But first, what exactly is inflation?
2022 has been an extremely bad year for almost every asset class! Stocks and bonds have suffered large losses. And inflation has been high, further eroding the value of investors’ savings. In a bear market, it is absolutely critical for long term investors to avoid panic selling at all costs.
I generated this text in part with OpenAI’s large-scale language-generation models. Upon generating draft language, I reviewed, edited, and revised the language to my own liking and I take ultimate responsibility for the content of this publication.
Simplified Employee Pension (SEP) Plans are a fantastic tool for small business owners, and employees of small businesses, to save and invest for retirement. They are simple to manage, and they come with major tax advantages. In some ways, they are superior to employer 401k plans.
I generated this text in part with OpenAI’s large-scale language-generation models. Upon generating draft language, I reviewed, edited, and revised the language to my own liking and I take ultimate responsibility for the content of this publication.
