A Simplified Employee Pension Individual Retirement Account, or SEP IRA, is a retirement plan designed for self-employed individuals or small business owners. One of the primary benefits of a SEP IRA is that it can reduce your taxable income on your 1099 form, resulting in potential tax savings. Here are some ways that a SEP […]
Month: March 2023
Why You Should Invest as Much as Possible During Bear Markets
Bear markets, defined as a prolonged period of falling stock prices, may seem like a scary time for investors. However, investing during a bear market can actually be a smart move for those looking to maximize their returns over the long term. Here are some reasons why: More Buying Opportunities Bear markets present buying opportunities. […]
Compound Returns from Investing Are Like a Flywheel
A flywheel is a mechanical device that stores energy and is used to maintain the momentum of a machine or system. Similarly, investing and compound returns are used to build wealth over time by putting in an initial investment and allowing it to grow through the power of compounding interest or returns. The compounding effect […]
How Many Millennials Are Millionaires?
A study by the Federal Reserve found that the number of households with a net worth of $1 million or more has been steadily increasing over the past few years, with 10.2% of households having a net worth of $1 million or more in 2019, up from 8.5% in 2016. The study also found that […]
Should You Sell Your RSUs When They Vest?
Restricted Stock Units (RSUs) are a form of equity compensation often given as part of an employee’s compensation package. When RSUs vest, employees receive shares of company stock, and the question arises: is it better to sell the shares immediately or hold onto them? The decision of whether to sell or hold RSUs depends on […]
Is Your Net Worth in the Top 1%?
Understanding net worth percentiles and the top 1% of people by net worth by age can be helpful in determining how one’s finances compare to others in their age group. According to the Federal Reserve, the median net worth for all households in the United States was $121,700 in 2020. However, net worth varies widely […]
Why High Earners Should Max Their 401k Contributions
Retirement planning is essential for individuals at all income levels. High-income earners, in particular, have an added advantage when it comes to retirement planning because they have access to more investment options. One of the most popular retirement planning vehicles is the 401k plan. 401k plans come in two types: Traditional and Roth. While both […]
Supercharge Your Income With a Software Engineering Side Hustle
Retiring early is a dream for many people, and a side gig as a software engineer can help make this dream a reality. A software engineering side gig can help reduce the number of years you need to work by providing additional income that can be used to pay off debts and increase savings. Additionally, […]
How to Preserve Your Wealth as a High-Income Earner
Preserving wealth is a crucial concern for high-income earners. With high earnings comes the potential for high spending, which can quickly deplete savings and investments if not managed properly. Here are some tips for preserving wealth for high-income earners. It’s important to live within your means. While high-income earners may have the ability to purchase […]
Why You Should Stop Gambling on Meme Stocks and Dollar Cost Average Into Index Funds
The rise of meme stocks, fueled by online forums and social media platforms, has captured the attention of many investors in recent years. While some have seen huge returns from these speculative investments, others have lost significant amounts of money. Rather than chasing after the latest fad, experts recommend a more reliable approach to investing: […]