A backdoor Roth IRA is a way for high income earners to indirectly contribute to a Roth IRA who would otherwise be ineligible. Here we'll look at what it is and where, why, and how to open one. What Is a Backdoor Roth IRA? A backdoor Roth IRA is a way for high income earners to still be able to contribute to the account from which they'd otherwise be ineligible … [Read more...] about Backdoor Roth IRA Explained – What, Where, Why, & How (2023)
Retirement
Can Teenagers Open a Roth IRA? Here’s Why They Should
Yes, teenagers can open a Roth IRA. In this post we'll explore how and why investing in a Roth IRA can be extremely powerful for kids. What Is a Roth IRA? First let's do a brief recap of what exactly a Roth IRA is. A Roth IRA is simply a retirement savings vehicle that was established in 1997 to help U.S. citizens save for retirement. It is an individual … [Read more...] about Can Teenagers Open a Roth IRA? Here’s Why They Should
Traditional IRA Explained – What, Who, When, Where, & How (2023)
The Traditional IRA explained. This is a guide for the U.S. tax-deferred individual retirement account. Here we'll explore what a Traditional IRA is, who they're for, when to contribute, and where, why, and how to open one. What Is a Traditional IRA? A Traditional IRA is simply a U.S. retirement savings vehicle by which investors contribute pre-tax income, that … [Read more...] about Traditional IRA Explained – What, Who, When, Where, & How (2023)
Roth IRA Explained – What, Who, When, Where, Why, & How (2023)
The Roth IRA explained. This post is a guide for the U.S. tax-exempt individual retirement account. In it we'll explore what a Roth IRA is, who they're for, when to contribute, and where, why, and how to open one. What Is a Roth IRA? A Roth IRA is simply a U.S. retirement savings vehicle by which investors contribute after-tax money, that money grows tax-free, … [Read more...] about Roth IRA Explained – What, Who, When, Where, Why, & How (2023)
401k vs. Roth IRA – Which Is Better for You?
A 401k and a Roth IRA are two very different types of retirement accounts for U.S. investors. Is one better than the other? Let's dive in. 401k and Roth IRA Similarities First we'll briefly go over the few similarities between a 401k and a Roth IRA. They don't have much in common. 401k and Roth IRA Differences The bulk of the discussion about a … [Read more...] about 401k vs. Roth IRA – Which Is Better for You?
Roth IRA vs. Traditional IRA – Which Is Better for You? (2023)
Roth IRAs and Traditional IRAs are two types of retirement accounts for U.S. investors. Is one better than the other? Let's dive in. Roth IRA and Traditional IRA Similarities First we'll briefly go over similarities between a Roth IRA and a Traditional IRA. Also note that you can open either or both of these types of IRA's in addition to an … [Read more...] about Roth IRA vs. Traditional IRA – Which Is Better for You? (2023)
Tail Risk – What It Is and How To Hedge Against It
Tail risk refers to the probability of an extreme outcome from a rare event. Here we'll look at what it is, how it affects portfolio construction, and hedging strategies for it. Introduction - What Is Tail Risk? Tail risk describes the likelihood of rare events at the ends of a probability distribution. Specifically, greater tail risk would suggest that the … [Read more...] about Tail Risk – What It Is and How To Hedge Against It
Investing Risk Explained (My Take on Portfolio Risk & Volatility)
In using the term "risk," different investors and advisors mean different things. There are several different types and definitions of portfolio risk. Some are more useful than others. Here's mine. What Is Portfolio Risk? In this post I'm going to be talking about systematic risk, which can't be diversified away. I already covered unsystematic risks - like … [Read more...] about Investing Risk Explained (My Take on Portfolio Risk & Volatility)
The 10 Best ETFs for Retirement Portfolios in 2023
Retirees have unique needs when it comes to their investment portfolios. Here I've assembled what I think are the best ETFs for retirement portfolios in . Video Prefer video? Watch it here: Introduction - What Retirees Need From ETFs Obviously, many ETFs are perfectly suitable for both the young investor at age 20 and the retiree at age 60. But the … [Read more...] about The 10 Best ETFs for Retirement Portfolios in 2023
Portfolio Diversification – How To Diversify Your Portfolio
Portfolio diversification is considered to be the only free lunch in investing. In this post, I'll show you why and how to diversify your portfolio. What Is Portfolio Diversification? Portfolio diversification simply means combining different assets in one's investment portfolio, effectively spreading out your risk. As the related adage says, "Don't put all your … [Read more...] about Portfolio Diversification – How To Diversify Your Portfolio
Sequence of Return Risk in Retirement Explained
Sequence of return risk may very well ruin your financial retirement plans, and all from sheer bad luck. Here we’ll look at the nature and implications of sequence of return risk in retirement, and some proposed solutions to at least mitigate its potential negative impact. What Is Sequence of Return Risk? Sequence of return refers to the variability of … [Read more...] about Sequence of Return Risk in Retirement Explained
Portfolio Asset Allocation by Age – Beginners To Retirees
Asset allocation refers to the ratio among different asset types in one's investment portfolio. Here we'll look at how to set one's portfolio asset allocation by age and risk tolerance, from young beginners to retirees, including calculations and examples. In a hurry? Here are the highlights: Asset Allocation Video Prefer video? Watch it here: What … [Read more...] about Portfolio Asset Allocation by Age – Beginners To Retirees
