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Try Not To Borrow From Your 401(k)
Most 401(k) plans allow you to borrow up to half your vested balance or $50,000, whichever is lower for up to five years without triggering any taxes or penalties. But here are reasons you should…
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You Don’t Want A Bull Market Early In Your Career
There is no clear definition of a bull market except when the stock market seems to be uninterruptedly going up year in and year out and you sense a feeling of euphoria all around, that…
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Investing Metrics That Don’t Matter
Benjamin Graham is considered the father of value investing. In his seminal book The Intelligent Investor, he lays out approaches on how to pick stocks that are selling for less than their stated value. Graham‘s most famous student, Warren…
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Do You Need A Revocable Living Trust?
The short answer is no but before that, a bit about why everyone should have an estate plan. Imagine you have little kids and something bad happens to both of you and you don’t have…
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If You Don’t Know How Much To Save, You Won’t Save Enough
Let us use saving for retirement as an example. The first thing you would want to know is the amount you would spend in the first year of your retirement. You’d then want to inflation-adjust…
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Umbrella Insurance
I am a worrier by design which means I try to protect what I need to protect through liberal use of insurance – life insurance for life, health insurance for health and auto insurance for…
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Dividends Are Not Free Money
Warren Buffett run Berkshire Hathaway paid a 10 cent dividend once in that one fateful year in 1967. Buffett, unarguably one of the best capital allocators ever, later joked that he must have been in the bathroom…
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Survivorship Bias Is Everywhere
During World War II, researchers at the Center for Naval Analysis were trying to decide on where to add reinforcements to damaged aircrafts returning from their bombing missions. Reinforcements add extra weight so not all…
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A Spectrum Of Uncertainty
Bonds are safer than stocks. Cash is safer than bonds. Investing in startups is not for the faint of heart. On a risk-return spectrum, we see an upward sloping line as we go from safe…
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Any Fool Can Make A Fortune
Cornelius ‘Commodore’ Vanderbilt, the American railroad and shipping tycoon, died in 1877 and left behind a $95 million fortune to his eldest son, William H. Vanderbilt. $95 million might not put you anywhere in the Forbes…