My $77,000 experiment portfolio -- Nov 2020 update

At the beginning of 2020, I started a new M1Finance portfolio where I picked several dividend stocks to invest in. The goal is to achieve similar returns to the SP 500 index but beat it in terms of dividends. As of the writing of this article, I’ve contributed $73,000 of my own money into this portfolio. By the end of this year, I will have contributed $77,000 ($25,000 initially and $1k contribution per week). In this article, I’ll share my M1Finance portfolio, how I’m doing against the market, my thoughts on the current stock market, and how I am doing against my FIRE schedule.

Read More

5 tips on how to use 529 plans

The cost of higher education has gotten expensive over the years. This means that being financially prepared for those 4+ years of college is more important than ever. As a parent of 1.5 kids (yes, one is in the oven), 529 plans have been top of mind for me especially during a market pullback such as now. In the following article I’ll share with you the reasons and best ways to utilize your 529 accounts. But first, what is a 529 plan? A 529 plan is essentially a brokerage account that is used specifically for education expenses. Anyone can deposit money into that account, and you can then purchase mutual funds that the plan offers. The gains that are made in that account can be spent tax-free. It is similar to 401k plans, used for retirement, or HSA accounts, used for medical care.

Read More

3 ways to maximize your 401K retirement account

Have you ever been given the advice to contribute 15% of your income into retirement? Or that you should max out your 401K? Or that you should at least contribute up to your employer match? Don’t worry, those are not going to be my tips to maximizing your 401K. In this article, I’ll share the most common mistakes you should avoid to not only maximize the returns but also protect your 401K account.

Read More

The Intelligent Way to Convert 401K to Roth IRA for Early Retirees

in

Retirement investment accounts are complex. Some are pre-tax, some are post-tax. Some have penalties if you withdraw early, some allow you to withdraw up to a certain amount without penalty. Some require you to withdraw a minimum amount after the age of 70.5, some don't. And many others. In short, there's a lot of choices—and a lot of tradeoffs.

Read More