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.
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 […]
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 […]
Many of you know I talk about investing and the power of index funds all the time, but today’s post is about when NOT to invest. The power of investing comes from time. When you have a 10+ year horizon the impact of buying and holding index funds can be massive. But over a shorter […]
For the record, this isn’t a paid post (in fact, I have never done a paid post). I’m also not necessarily endorsing Fidelity, although it is the brokerage I primarily use for about 95% of my liquid assets. That said, it’s pretty cool Fidelity identified the race to the bottom on minimizing fees on index […]
Learn the concept of an index fund and how it differs from an actively managed mutual fund.