Personal Finance Foundation – Part 4 – Invest, Invest, Invest

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Having examined how you can grow net worth by reducing spending and growing income, we now come to the most powerful tool for growing net worth: Investing. Reducing spending produces quick wins in growing net worth, but there’s only so much cost cutting you can do until you are living on a bare bones budget.… Continue reading Personal Finance Foundation – Part 4 – Invest, Invest, Invest

What Can You Learn from the Subprime Mortgage Crisis?

It’s hard to believe time has passed so quickly.  Ten years ago the subprime mortgage crisis led the U.S. economy into a severe recession and carnage ensued.   Many people lost their homes along with huge portions of their retirement savings.  Credit markets froze and taxpayer money was used to purchase toxic assets from the… Continue reading What Can You Learn from the Subprime Mortgage Crisis?

Psychology and Fear in Personal Finance

Be fearful when others are greedy.  Be greedy when others are fearful. -Warren Buffet Warren Buffet is one of the most successful investors of recent times and provided this great quote in 2008 during the height of the subprime mortgage crisis.  During the 2007-2009 bear market, the S&P 500 lost over 50% of its value… Continue reading Psychology and Fear in Personal Finance

Why You Should Use Index Funds in Your Retirement Accounts

When I first started learning about investing and retirement accounts, I struggled to determine where I should invest my money.  Thankfully, several great personal finance web sites (including Motley Fool and Bogleheads) agreed that investing in index funds led to the most benefit for most people.  Index funds are mutual funds that track what is… Continue reading Why You Should Use Index Funds in Your Retirement Accounts

Great Personal Finance Podcasts

One of my favorite things to do on long drives is listen to personal finance podcasts.  There are a handful that I have found (so far) to be better than the rest: My favorite podcast is Afford Anything with host Paula Pant, as she combines an entertaining delivery with great guest speakers.  Paula encourages listeners… Continue reading Great Personal Finance Podcasts

How to Save for Retirement and Not Miss the Money

A recent Wall Street Journal article indicates that 28% of Americans have no confidence that they’ll have enough money saved to retire comfortably.  In the same article, 57% of those surveyed indicate that they have less than $25,000 in savings and investments outside of their home values.  Given that retirement calculators indicate you’ll need much… Continue reading How to Save for Retirement and Not Miss the Money

Changes to 401(k) and IRA in 2013

The new year will bring changes to 401(k) and IRA accounts.  These changes will allow you to save more.  Here’s a list of what’s changing: Increased 401(k) contribution limit – The maximum you can save annually will increase from $17,000 to $17,500.  These figures apply to 403(b) accounts, too. 401(k) fee notifications – Quarterly statements… Continue reading Changes to 401(k) and IRA in 2013

Target Date Retirement Funds – Silver Bullet?

Target date retirement funds are fairly recent inventions created by investment brokerages to simplify the lives of investors.  Target date retirement funds take care of asset allocation for you, adjusting holdings to a more conservative mix as you near a fund’s target year, presumably a date near your retirement date.  As the fund nears the target… Continue reading Target Date Retirement Funds – Silver Bullet?