As I’ve mentioned before, I once moved from Texas to California. With this move came a significant increase in both salary… and cost of living. It led to my savings rate decreasing but my overall dollar savings level staying relatively the same. Today let’s explore the pros and cons of working in a high vs. […]
A common financial topic begging for answers is whether to pay down debt or invest. Over much of the internet, it is encouraged to pay down your high interest debt before investing in a Roth IRA or putting money into a 401(k) above the employer match. The difficulty has always been in defining what, exactly, […]
Over the Thanksgiving weekend, I decided to play around with Morning Star’s X-Ray tool. The tool takes your entire portfolio and analyzes the asset allocation by geography, by risk level, by asset class as well as by type (growth vs. value, etc.). Here is what my current asset allocation across my portfolio is (asset type): […]
At the end of last year, I stated that I wanted to pay down ~$34,000 in consumer debt (outside of my mortgage). I am writing today to report on both a level of success and a switch in strategy. How am I faring? In short: decently. I am not currently on track to hit my […]
(Read parts one and two in the emergency funds series) In the first two articles, I covered: How important it is to be cash flow positive How to cover very small shortfalls with credit How to cover truly large expenses with different forms of insurance. The most important large unplanned expenses that could potentially be […]
I know the title sounds like I’m about to sell you some snake oil, but bear with me for a second here. Some bloggers have discussed the inherent unfairness of the Roth IRA‘s contributions – namely, being capped at $125,000 for a single filer and $183,000 for a joint filer in 2012. Other have discussed the backdoor IRA – building on a 2010 rule change which allowed people of any income to convert IRAs (and other eligible accounts) to Roth IRAs. We’re going to bypass both of those and talk about how you can contribute over $30,000 to your Roth IRA – with the only requirement being that you have access to a 401(k) with certain features. Read on…
Tying to an article earlier that my colleague PKamp3 wrote, personal finance seems to have taken a dive in popularity in more recent years. As a writer for a confessedly self-aware personal finance crowd, this assertion may seem irrelevant, surprising, or, at worst, alarming. As a young college graduate, many of my fellow coworkers (as well as I) have student loans as one of their more significant financial obligations on top of car loans and (soon) mortgages. Some plan on paying down their student loans as fast as possible to deleverage themselves and then start saving for a home. I am of a different and not necessarily correct opinion: to hold onto the student loans for as long as possible due to their incredibly low interest rate and tax-deductibility for incomes up to $60,000 (partial deductions up to $75,000).
It’s a topic we’ve covered here at DQYDJ before, and we’ll definitely do it again in the future. Every once and a while everyone needs a reminder: if you qualify, open a Roth IRA. If you have one and you aren’t funding it: do it. Here’s a rehashing of why!
Unlike the swine flu, the personal finance bug is a relatively hard bug to get. Unfortunately (for them), far too many people avoid putting any thought into their future until that ‘future’ is right around the corner. Investing is a topic that comes up a lot when I talk with people. How you field open ended questions like “How do I invest in stocks?” is a make or break question in which you need to figure out before your trust is deserved. I’ve come up with a step by step method which I use to narrow my confidant’s thoughts and distill their true intentions. Read on, then leave me comments on your style.
If you saw $1,377.71 lying on the ground, would you pick it up?
I hope you would. That’s the sort of savings you could find from opening a Roth IRA. Any increase in your future tax rates means you made money simply from choosing the right account to invest in. Sound good? Read the article.