Stocks vs. Bonds – Which is the Better Bet?
Choosing between placing lottery winnings in an S&P 500 Index Fund or a 10-year treasury bond poses a dilemma: guaranteed returns versus potential dividends from a diversified portfolio.
Does Your Portfolio Align With Your Dreams?
Achieving financial independence in 10 years requires balancing conservative and aggressive approaches, calculating the required rate of return, and considering risk tolerance, highlighting the dynamic nature of financial planning.
Steps To Upgrade Your Financial Plan
Clients start with a strong financial plan rated “A,” but my goal is to elevate it to “A+,” adjusting for changing variables like tax laws and personal circumstances, recognizing plans become outdated upon creation.
Leveraging Life Insurance For Family Financial Support
We examine a strategy where the child owns a life insurance policy on their parents, paying annual premiums of $15k for 20 years and receiving a tax-free death benefit of $700k after their passing, achieving an 8.18% internal rate of return.
How Much Should I Be Saving?
After establishing the target “nest egg” of $3.8 million, the next step is to calculate the annual savings needed, such as $77,000 per year over 20 years, accounting for tax implications, especially with various account types.
How Much Money Do I Need?
After calculating the annual portfolio need for “financial independence” at $151,713 and dividing by a 4% distribution rate, the required portfolio amount is $3,792,833, marking a significant step towards financial freedom.
How Much Do I Need To Save?
A look at what is needed in saving for you financial portfolio.
How Much Should I Be Saving?
It’s essential to tackle the monumental variables of future tax rates, inflation projections, and portfolio return expectations.
How To Budget/Save On A Variable Income
Despite increased income, navigating variable earnings can feel uncertain; however, strategic planning, like averaging monthly earnings and building an emergency fund, can provide stability.
Another Look At Saving On A Variable Income 2.0
After mastering variable income basics, strategize next steps: maximize retirement contributions, automate investments, and ensure surplus funds work for you.
How To Diversify Your Portfolio Like A Pro
Diversification isn’t just about owning many funds; it’s about ensuring your investments are spread across various asset classes to weather market volatility and maximize returns.
Market Drop Survival Guide
Rather than trying to predict market drops, focus on preparation: consult your plan, build your emergency fund, and ensure short-term funds are secure.