“I don’t know” is often the difference between success and failure in the investment world. Unfortunately, these three words are rarely heard across the investment industry, which is built on the illusion of certainty. However, it is important to remember that how investors approach things that are unknowable is far more important than anything that can be known.
Read on to learn more about the relationship between risk and reward, how to understand your own tolerance for risk, ways to reduce risk through diversification, and where you can look to find reputable sources of information about investments.
Not educating yourself about which investments may be able to help you pursue your financial goals and how to approach the investing process is a mistake for any saver. Read on to find out how knowledge about your investments creates financial independence.
Delve into this quick read to pick up six basic principles that may help you invest more successfully—from considering different asset allocations to making sense of time horizons and understanding long-term compounding.
When developing your estate plan, you can do well by doing good. Leaving money to charity rewards you in many ways. It gives you a sense of personal satisfaction, and it can save you money in estate taxes.
If you give away money or property during your life, those transfers may be subject to federal gift and estate tax and perhaps state gift tax. The money and property you own when you die (i.e., your estate) may also be subject to federal gift and estate tax, and some form of state death tax. These property transfers may also be subject to generation-skipping transfer taxes. You should understand all of these taxes, especially since the passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (the 2001 Tax Act); the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act); the American Taxpayer Relief Act of 2012 (the 2012 Tax Act); and the Tax Cuts and Jobs Act. The recent Tax Acts contain several changes that make estate planning much easier.
What Is a Roth 401(k)? A Roth 401(k) is simply a traditional 401(k) plan that accepts Roth 401(k) contributions. Roth 401(k) contributions are made on an after-tax basis, just like Roth IRA contributions. This means there’s no up-front tax benefit, but if certain conditions are met, your Roth 401(k) contributions and all accumulated investment earnings...
An annuity is a contract between you, the purchaser or owner, and an insurance company, the annuity issuer. In its simplest form, you pay money to an annuity issuer, and the issuer pays out the principal and earnings back to you or to a named beneficiary. Life insurance companies first developed annuities to provide income to individuals during their retirement years.