Category: Investing
-
The Power of Compounding
Picture this: you pack a snowball and plop it down onto the snowy ground. You pack a bit more snow onto it, and then roll it down the hill in front of you. What happens as it rolls down? It gathers more snow, and it grows. The farther it rolls, the more snow it picks…
-
Tax Deductions
So what is a tax write-off? I’ll let Johnny Rose do some of the heavy lifting on this one. As Johnny said, tax write-offs (aka tax deductions) are expenses that are used to reduce your taxable income. He mentioned business expenses specifically, but there are also many personal tax write-offs as well. Some of the…
-
Tax Brackets
What’s exactly is an Income Tax Bracket? In the United States, we use a system that charges a different tax rate depending on your income. As your income increases, so does your tax rate. These different rates are called tax brackets. One of the common misconceptions is that if your income is high enough to…
-
401Ks, 403Bs, and IRAs
I keep hearing about these. What are they??? In short, they’re all types of retirement accounts. They are designed to encourage you to save up your money for retirement by allowing you to save money on your taxes, depending on which account type you choose and how much money you contribute to them. They also…
-
Mutual Funds, ETFs, and Index Funds
So you understand what stocks and bonds are… for the most part. That’s okay. It’s going to take a few tries to get that “Oh! That makes sense!” moment. Stick with it, and let’s add on to things a little bit. A fund is a pool of money that is used to invest in different…
-
Stocks and Bonds
Why does this matter? For the average investor, stocks and bonds are the main investments that are easily accessible and common. Understanding stocks and bonds alone will not make you wealthy, but understanding them will help, and failing to understand them will create an Everest-size speed bump in your financial journey. What is a stock?…
-
What is Investing?
First off, what is an asset? An asset is something can be used to generate income. Assets can take on many different forms, such as stocks, bonds, real estate, or other things. Investing is when you trade your money for assets. These assets are supposed to (but don’t always) generate more income for you. When…
Seaotter Fitness 