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Most people who discover zero-commission brokers think they’ve cracked the code on free trading. They haven’t. Every single trade carries a built-in cost called the bid-ask spread — and on certain securities, it dwarfs what anyone paid in commissions years ago. Understanding this one concept separates investors who know their real costs from those who …
Fresh off of a second huge stock market rally from a frightening decline in the past year, I thought it would be timely to do a bit of reflecting. For those with very short memories (or news avoiders), the stock market took an absolute nosedive in January through early February as oil prices bottomed out …
One of my very favorite personal finance metrics to calculate, monitor, and compete against is my personal inflation rate (as one half of a married couple, it could more rightfully be referred to as “household inflation rate” since my wife and I share all costs). Whatever you want to call it, I’d put it second …
The median American household has about $8,000 in a savings account. The average retirement savings for someone nearing 65 is roughly $200,000. That number needs to be closer to $1.5 million to maintain a modest lifestyle. That gap — between $200k and $1.5M — is not a math error. It’s a structural problem in how …
You spent three hours comparing two credit cards to save $12 a year in fees. You rebalanced your 401(k) for the fourth time this quarter. You clipped coupons for an hour to save $3.50 on groceries. That feeling of wasted effort? It has a name. The law of diminishing returns. In economics, it says that …
Long-time readers here know that personal savings rate is one of my favorite personal finance metrics (along with safe withdrawal rate, crossover point, net worth, and “usable net worth”, to name a few). No other metric is as apt at diagnosing your current “personal business” of household cash flow management. In its simplest form, Personal …
I recently highlighted a few different alternatives to stocks and low-interest cash savings. One of the options I mentioned was a money market fund (also known as a money market mutual fund). Money market funds are often confused for similar-sounding money market accounts – a type of savings account that banks offer, but they are …
Learn when and how to report side income with key tax thresholds explained for freelancers gig workers and hobby earners to stay IRS compliant.
Learn the 3 financial calculations to do before you quit your job to ensure savings, manage expenses, and plan for healthcare costs confidently.
Freelancers learn how to save for retirement without a 401k using Solo 401k SEP IRA Roth IRA and tax-smart strategies for self-employed success.
