Tracking average income by age is a great way to see how you are doing compared to your age group. According to the Census Bureau's Current Population Survey in 2016, the average American under 65 is earning $46,409 per year. How does that break down by age? Average Income by Age is Skewed Many people default to averages, and this is an important reminder to emphasize how … [Read more...] about Average Income by Age – Where Do You Rank?
Start Budgeting with the 50/30/20 Rule
The 50/30/20 Rule is a great format for anybody new to budgeting. Determining how much to spend on housing, social events, dating, and everything else in life can be daunting. If you don't lay the right budget foundation, your savings could easily fall by the wayside. There is a huge opportunity cost when you don't save early. With the 50/30/20 rule, you split your after-tax … [Read more...] about Start Budgeting with the 50/30/20 Rule
Everything To Know About Tax Loss Harvesting
Tax loss harvesting is the silver lining whenever a stock goes down. When you sell your investment for a loss, that loss can be deducted from your income and capital gains taxes. Lowering your tax liability will indirectly increase your returns, especially if you have owned that investment for less than 1 year. Tax loss harvesting has some tricks, and we'll walk through how … [Read more...] about Everything To Know About Tax Loss Harvesting
What’s the Ideal Investment Horizon?
How long should you own stocks? On average, your investment horizon should be longer than it is. Winning feels a lot better than losing, which explains why so many people sell their winning stocks too soon. The American Psychological Association found that investors across all demographics and personality types sell their winning stocks too early. "People want a sense of … [Read more...] about What’s the Ideal Investment Horizon?
How Inflation Eats Away Your Personal Savings Account
Personal savings account rates have been trending up in 2018, with rates getting as high as 2.05%. While that is certainly the highest return we have seen in 5 years, it also doesn't factor inflation. The United States Federal Reserve targets 2% for inflation, meaning that it will eat away nearly 98% of the returns in your personal savings account. Once you include inflation, … [Read more...] about How Inflation Eats Away Your Personal Savings Account