Education
Investing
The information provided here is for general educational purposes only and is based on common financial assumptions and estimates. It should not be considered personalized financial advice. Before making decisions about investments, retirement planning, taxes, insurance, or business strategies, consult with a qualified financial advisor, tax professional, or other licensed expert who can review your specific situation.
Investing Basics
What is the best way to start investing?
Most beginners start with a 401(k), IRA, or Roth IRA since they offer tax advantages. Beyond retirement accounts, ETFs and index funds tracking the S&P 500 are popular for long-term growth.
What’s the difference between stocks, bonds, and ETFs?
Stocks give ownership in a company, bonds provide fixed interest income, and ETFs combine many investments into one fund. Many investors use a mix of stocks, bonds, REITs, and mutual funds for diversification.
Should I invest in mutual funds or ETFs?
ETFs usually have lower fees and trade like stocks, while mutual funds may offer professional management. Both can hold stocks, bonds, or REITs. Many investors choose ETFs for long-term retirement investing.
Retirement-Focused Investing
Is a Roth IRA better than a traditional IRA?
A Roth IRA allows tax-free withdrawals in retirement, while a traditional IRA gives an upfront tax deduction. High earners often use a backdoor Roth IRA strategy to maximize tax-free retirement income.
How should I invest inside my 401(k)?
Diversify between U.S. stocks, international stocks, and bonds. Many professionals use target-date funds or S&P 500 index funds for simplicity, while others add REITs or bond funds for balance.
What is the 4% rule for retirement investing?
The 4% rule suggests withdrawing 4% of your investment portfolio each year from accounts like 401(k), IRA, Roth IRA, or annuities to make your money last about 30 years.
Advanced Investing
Is real estate a good investment?
Yes. Many investors build wealth through rental properties, REITs, or real estate crowdfunding platforms. Real estate can provide cash flow, tax deductions, and long-term appreciation.
Should I invest in individual stocks or index funds?
Individual stocks can offer higher returns but carry more risk. Index funds and ETFs spread investments across many companies, lowering risk while still tracking market growth. Most long-term investors prefer index funds.
Are annuities a good investment for retirement?
Fixed annuities provide guaranteed income, while variable annuities offer growth potential with more risk. Annuities can complement 401(k), IRA, or Roth IRA accounts for predictable retirement income.
