The quick answer It doesn’t matter because you shouldn’t be holding cash in your Roth IRA anyway. So just pick SPAXX and go on with your life. 😀 Longer explanation If you’re using Fidelity, you might see a button like this: That looks tempting, so you click on it and see something like this: So […]
Often I have a conversation like this with one my friends: My friend: My home is killing it. Six years ago I paid $300,000 for it and now it’s worth $380,000! That’s a profit of $80,000!Me: But if you sell it, wouldn’t you have to pay 6% realtor fees off the top?My friend: Well, yeah, […]
You did it! You saw my talk at the free HappyYou conference! If you’re looking for the slides you can download them here.
I believe the best way to maximize your future wealth is to buy and hold index funds.But I get it. I know it’s tempting to stray from that simple course when you hear about the hottest new tech stock or have FOMO over bitcoin. So I suggest the 90/10 rule. With 90% of the contributions […]
If I had to give one piece of advice to help improve your financial situation, it would be to track your net worth. Not knowing your net worth is like spending your whole education and career learning how to play football but not knowing how to keep score. Earning money from your career is playing […]
Last updated on August 16th, 2020 by A three-fund portfolio is a simple way to diversify across the world’s stock and bond markets, and guarantee yourself your fair share of the full world’s market growth. It’s optimal investing with optimal simplicity. What is a three-fund portfolio? A three fund portfolio is an allocation of just […]
I think getting these different “layers” confused is the absolute number one most common confusion in investing. So let’s walk through what happens when you invest.1. You go to a brokerage website (e.g. Vanguard.com)2. You open an account (e.g. a Roth IRA)… now your Roth IRA is with/inside of Vanguard.3. You contribute money to your […]
I often discuss how owning your primary home isn’t a great investment. In fact, after you account for property taxes, mortgage interest, maintenance, insurance, and realtor fees, almost every homeowner loses money net of their expenses. While most homeowners do sell the property for more than they bought it for, that just gives the illusion […]
When you learn enough about investing and how the market works, you realize that trying to beat the market is a fool’s errand. The optimal way to invest is to buy and hold index funds. So what levers can you move to maximize your future wealth? Well, there’s really just a few:• How much you […]
I get this question a lot. ETFs and index funds are nearly identical. The equivalent ETF and index fund (as the example above) contains the exact same stocks and performs exactly the same. The only difference is in how you buy and sell them. ETFs trade like stocks. You can buy and sell in realtime […]
