An IRA is one of the easiest ways to reduce your taxable income since anyone with earned income can open and contribute to an account. The full amount of your contribution to a traditional IRA is tax deductible, which in 2023, can be up to $6,500 if you’re under 50 years old, and up to […]
Looking to reduce your taxable income this year? Maxing out a SEP IRA could give you one of the highest tax deductions possible this year. Your taxable income can get reduced by up to $61,000 in 2022 and $66,000 in 2023 by maxing out contributions to your SEP IRA. Are you self-employed or run a business with no […]
Average stock market returns: The stock market’s average annual return is 12.74% over the past 10 years, 8.14% over the past 20 years, 9.64% over the past 30 years, and 11.6% over the past 40 years. The S&P 500 was created in 1928, and the average return since then is 9.82%. However, it wasn’t until […]
How much does a financial planner cost? A financial planner can cost anywhere from a few hundred dollars to hundreds of thousands or even millions of dollars. It entirely depends on the type of services being offered and how their fee structure works. A financial planner will either charge an AUM fee, flat annual fee, […]
The average expense ratio of index funds, ETFs, and mutual funds can vary depending on the specific fund, its asset class, the fund provider, and other factors. In this article, we’ll learn what an expense ratio is, how it’s calculated, the average expense ratio, and how it affects your portfolio. What is an expense ratio? […]
Active and passive investing are two approaches to managing investment portfolios. The main difference between the two lies in how investment decisions are made and how the portfolio is managed. TLDR; Active investing involves a human investor picking and choosing individual investments to try and outperform the market. The performance of an actively invested fund […]
Index funds, exchange-traded funds (also known as ETFs), and mutual funds are similar investment products. By doing one transaction, you’re able to own a small percentage of all its underlying assets. Instead of purchasing a single stock, or individually purchasing multiple different stocks, you can purchase one index that gives you access to a group […]
Early withdrawals made from a 401k plan are subject to a 10% penalty plus income taxes on the amount drawn. If your plan provider enables loans as an option for participants, a 401k loan could be the better alternative to an early withdrawal if you’re in urgent need of emergency funds. What is a 401k loan? A […]
What is a robo-advisor? Robo-advisors are automated investment platforms that provide algorithm-based financial planning and portfolio management services with almost no human supervision. They use algorithms and mathematical models, developed by human investors, to manage investment portfolios automatically. A robo-advisor will assess your risk tolerance, determine your investment time horizon and goals, and build your […]
