Like utility knives, there are a few investment tools that are relatively simple in their design and extremely powerful in their effectiveness. One of these, without question, is the Roth IRA.Here are three attributes--utilities if you will--which make a Roth IRA such a powerful tool for families to build and use their wealth.
Why is Diversifying Your Wealth so Important?
When I was single and dating, I had several wise friends and family members tell me not to “put all your eggs in one basket.” Anyone that has much experience in dating knows the value of the phrase, cliche as it may sound. Opportunities tend to come and go in the dating world. Getting your heart set on one person (especially early on) and having it not work out can lead to unnecessary heartache. A better approach is often to go on dates with a variety of people.
Why Homeownership May Not Be Worth The Costs
Being homeowners and landlords has given us a new appreciation for using real estate to build wealth. It’s been a great experience so far, but there are both material and unseen costs involved which take a toll. Here are a few thoughts based on our own experiences, and why homeownership sometimes isn’t all it’s cracked up to be.
Four Families with 401(k)s. Four Very Different Results.
Occasionally when I’m talking to someone about the importance of saving for retirement I’ll hear a comment like this: “Oh yeah, I’ve got my 401(k) all set up. I’m good to go!” While having a 401(k) is a good step, it’s only part of the retirement battle. Simply having a 401(k) is akin to having a gym membership--it gets you through the door, but you need to do something with it.
Thanks, La La Land, for Showing Us a Bit of Reality
Kellie and I went to see La La Land a couple of weeks ago. We both loved the film for it’s wonderful music, captivating story and creativity, but it’s the ending that really hooked us. The final scenes helped me understand a bit better the value of making plans (financially or otherwise) even if they don’t work out.