Is the Conventional System to Create Wealth Rigged?

create wealth

I’ve got a confession for all of you: I’m getting impatient! It was approximately 10 years ago that I first learned what a 401k was (I had never even heard of one before) and began my first steps towards saving for retirement. Like many of you, I knew the path to create wealth would be lined with hard work, lots of saving, and choosing the right investments. I took the conventional financial advice and began with a modest 10% savings rate. It wasn’t until the last few years that I’ve tried to accelerate my results by bumping my savings rate to extremely high amounts. So is it any wonder that when I look at my 401k balance and see how long I have to go that I feel I’m playing a rigged game? Sure if I stay the course I might have a … [Read more...]

Which Is Better – Rental Income or a Stock Market Index Fund?

Rent vs Index Fund

Who’s ready for some financial smack-down? If there’s any two groups of investors I can think of that are more divided, it’s those who invest in real estate and those who invest in stocks - like a North and the South of financial planning if you will. So the question here is this: Which one actually has a better chance of making you more money in the long run?  This may be a controversial debate, but we’re going to settle this argument the MyMoneyDesign way – by running the numbers!  So let's see what we come up with ... … [Read more...]

How Much Money Would I Make If I Rented Out A House?

House

When it comes to buying stocks, the old rule of thumb is to “buy low and sell high”. If you’re fortunate enough to understand this saying, then you’ll know that it doesn’t just apply to stocks. It’s meant to teach you to look for opportunities. So even though the value of my home seems to go down, down, down every year, perhaps therein lies an opportunity. As I walk the dog through my neighborhood, there is an abundance of houses for sale. And what’s more is that I KNOW they are selling for FAR less than what I paid for mine. So this gets me thinking: • If I have any aspirations to buy a house and rent it out, is now the time? … [Read more...]

How to Buy an Index Fund

Vanguard_500Index

One of the frustrating concepts a new investor can come across is when people talk about an Index Fund. [Sarcastic Dad Voice ..] “Index funds are great!” “You can’t beat an index fund!” - That’s all fine and good, but what exactly IS an index fund? And if they’re so awesome, where does one go to actually buy an index fund? That’s exactly what I’m going to show you in this post. We’ll briefly explain the love affair people have for index funds and I’ll show you where to buy one for cheap!   What is an Index Fund? First things first, when we (or most sites) refer to an index fund, we’re talking about the S&P 500 stock market index. The S&P 500 (along with the DOW and NASDAQ stock indexes) is one of the three major figures … [Read more...]