Why Portfolio Diversification is So Important
Let’s go back to the spring of 2000. Everyone was chasing dot-com stocks, and the sky seemed the limit. People were convinced they’d retire at 35 thanks to their tech portfolios. So many investors were all-in on a couple of flashy Internet companies. For a while, account balances soared. But then the bubble burst, and […]
Tax-Smart Investing: Matching the Right Assets and Accounts
In 1999, tech investor Peter Thiel put less than $2,000 into a Roth IRA. Fast forward ~20 years, and that Roth IRA ballooned to $5 billion (yes, with a “b”) tax-free. How? Thiel used his Roth IRA to buy dirt-cheap startup shares (think early Facebook), and all the growth happened inside the Roth wrapper. Because […]
The Power of Starting Early: How Compound Growth Can Transform Your Investments
Albert Einstein allegedly called compound interest the “eighth wonder of the world” – “He who understands it earns it; he who doesn’t pays it.” Well, I don’t know if we can’t verify he actually said that, but the quote really resonates because it highlights how powerful compounding can be over time. Because here’s the thing: […]
Where to Start when Starting out Investing
The Lessons We Need to Learn Before Investing The investing life cycle, as I like to call it, seems to start in the same place for everyone. That is our first interaction with money and what to do with it: spend it or save it. Traditionally, when we were all young and reached some type […]