Inflation is the sustained, upward movement of prices in an economy. It is not defined by the price changes of a single item, rather it measures the general trend of prices paid for a wide range of goods and services, reflected by an index like the Consumer Price Index (CPI). Generally speaking, prices for things [...]
In a country founded on the idea of individual freedom, Americans value the idea of choice. We inherently believe that maximizing individual freedom increases our individual welfare or happiness and that the best way to maximize individual freedom is to maximize choice. A bar with 120 beers on tap is perceived better than a bar [...]
It is difficult to go more than a week without seeing or hearing advertisements for an investment that guarantees zero risk of principal loss, promises an attractive return (5-10% per year), and insurers lifetime income that never expires. Admittedly, these promises can sound very attractive on the surface, especially for risk averse investors. But are [...]
Related Posts: Part II: High Income Earners and the Math of 529 Contributions Is Overfunding 529s Really so Terrible? More than 50,000 visitors in 2021… click here to sign up for our newsletter and never miss a post! (Don’t worry, we will not take up too much space in your inbox. After four fun introductory [...]
We made the case in this earlier post that Section 529 College Savings Plans present a huge tax saving opportunity for high income parents but that most fail to exploit the opportunity. Based on experience and observation, we cited five reasons that parents and grandparents fail to maximize the potential benefits. Two of those reasons [...]
When qualified state tuition programs (QSTPs) were first introduced in 1996 and Section 529 was added to the Internal Revenue Code, the intent of Congress was to create a create a tax-friendly way for families to save for college costs. At that time, the law provided that any earnings in a QSTP would be tax [...]
The following post is an edited and abbreviated version of the quarterly investment commentary that we recently sent to RPG clients. A Jewish boy from Chicago is to blame. Harry Markowitz – a name that anyone who has ever taken a finance course might recognize - grew up in Chicago during the Great Depression. He [...]
Related posts on Investing in an Inflationary Environment: Deeper Dive into the Mechanics of Series I Bonds What are TIPS and how do they work? Sell Bonds in Inflationary Environments? Your end of year to-do list is already overflowing. You have to prepare and send holiday cards, put up lights, get the holiday-themed lawn ornaments [...]
Related Posts: When ROTH is Wrong: Follow-Up Q & A Opportunity for High Income Earners – the Backdoor Roth Conversion More than 50,000 visitors in 2021… click here to sign up for our newsletter and never miss a post! (Don’t worry, we will not take up too much space in your inbox. After four fun [...]
Following the When Roth is Wrong post, readers responded with various questions and, sometimes, with a different form of the same question. We address several of those questions below since they're good questions and may be helpful for other readers. Q: If we end up leaving the retirement accounts to our children, doesn’t that make [...]
