Michael Burry is the guy who famously predicted the real estate collapse in 2007 and was depicted in the movie “The Big Short”. He’s recently come out predicting a new bubble that’s about to pop: Index funds. So we should be worried, right? No. Here’s why: Got it right once syndrome: The media LOVES to […]
Fidelity famously declared victory in the expense ratio wars last year when they released four zero fee index funds: FZROX: Fidelity® ZERO Total Market Index Fund FNILX: Fidelity® ZERO Large Cap Index Fund FZIPX: Fidelity® ZERO Extended Market Index Fund FZILX: Fidelity® ZERO International Index Fund The exploding popularity of low fee index index funds […]
The popular debate of “rent vs buy” ignores the much bigger question: How MUCH should you spend on your primary residence, whether you rent OR buy? To illustrate this point, I’d like to tell the story of my two emoji friends, Morgan and Hannah. They both bought a home in 1989, exactly 30 years ago. […]
Steve, Mike, Larry, Tom and Paul were college friends who graduated 40 years ago. On they day they graduated, they made a pact to max out their IRAs every year, starting in 1979. (It was a Traditional IRA back then as the Roth wasn’t introduced until 1997). They continued contributing every year for 40 years […]
This is the story of three friends, Tiffany, Brittany and Sarah who saved and invested in the US stock market over the last 40 years (1979-2019). All three saved $200 of their income per month for 40 years for a total of $96,000 each. But after 40 years they all ended up with different amounts […]
I get this question all the time when someone is opening a new Roth IRA or brokerage account with Fidelity. “Which core position should I choose?” when they see an option like below. The answer: It doesn’t matter, but for any sort of investment account (like an IRA) use the Money Market Fund (SPAXX) (reasoning below) […]
I love target date index funds. I believe they’re your best bet to maximize long term wealth and almost every individual investor should put 100% of his or her equity portfolio in a single target date index fund. Seriously. What are target date index funds? They’re named after a target retirement year: A couple examples are […]
Almost every day I talk to someone who mentions their credit score. After being in school our entire young lives, I think we must all yearn for someone to give us another grade. And when the ol’ FICO corporation is slapping a big number on all of us we jump for joy and excitedly burn […]
Not rolling over your old 401(k)s will cost you $732,102
Hey What it do! How do I buy stock? You like… want to buy shares in a company as an investment? Yes! Exactly. Wait… why? What’s your goal? I want to get rich! Sweet! But, if that’s your goal, I would highly recommend learning about mutual funds or better yet index funds. That’s a better […]
