When it comes to planning for retirement and diversifying your investments, these days your choices pretty much fall between one of two major options – the ETF vs mutual fund. Recently while rolling over my old 401(k) to an IRA with Vanguard, I had to make a very big decision as to which way I wanted to go. I could stick with their low cost mutual funds which I was very familiar with. Or I had the option to pick commission free ETF’s. Having six figures of retirement savings, this was in no way a decision to be taken lightly! Choosing the right type of funds could mean saving myself … [Read more...] about ETF vs Mutual Fund – Why My Money is with Mutual Funds
Stocks & Investing
If passive index funds are the way to go, then why does anyone invest in actively managed funds at all? That was the question I received when I was trying to help someone pick some mutual funds for their 401(k) plan. It's definitely a good one to ask! Over the years, a seemingly growing number of academics and financial bloggers have really been showing their love for investing with passively managed index funds (myself included). With all the major advantages and benefits they point out, it sure seems like a no-brainer that this is the way to go. Yet, when you take a closer look at … [Read more...] about Why Do More People Invest In Actively Managed Funds vs Passive Index Funds?
How can the average person become rich as fast as possible? You might think you need to be some kind of stock-picking wizard, or that you need a "guy" to manage your money for you. But in reality, that's often not the case at all. Study nearly any early retirement story and you will find that the truth is painfully very simple: To get rich faster, you need to save more money. A LOT MORE money! So then: Why does everyone focus on investing over the actual act of saving? While investing is a VERY important part of growing your wealth and eventually turning it into passive income, there … [Read more...] about What’s the Fastest Way to Get Rich? Simple: Save MORE!
Ever since reading “The 3 Percent Signal” by Jason Kelley (and unfortunately de-bunking its claims in my post here), I’ve been very curious about whether or not buy and sell signals for stocks really exist or not. For anyone who doesn’t remember, the 3 Percent Signal was an interesting concept where you effectively buy or sell shares of an ETF to effectively lock yourself into a 3% gain per quarter. I, unfortunately, somewhat fount this strategy to be a bust when I tried to validate it by reproducing the results. At its basic level, I do believe there is some merit to a “buying or … [Read more...] about Do Buy and Sell Signals for Stocks Really Exist? The 10% Experiment
Recently I just finished the book “The 3% Signal” by Jason Kelly. As you can read in my book review here, the premise of The 3% Signal is to offer the common man a “simple” strategy for investing that (in theory) has the potential to beat traditional index fund investing! I’ll admit it – this book was scratching me right where I itch! I’m a huge sucker for mathematical-based approaches to investing and optimizing your personal finances. (When I say that, someone like Michael Kitces or Wade Pfau comes to mind.) If you’ve got the right numbers and figures to provide as evidence for your … [Read more...] about Does the 3% Signal Investment Strategy Really Work?
MMD: Today we have a mega guest post from fellow personal finance blogger ARB. Take it away! Hello, readers of My Money Design! I am ARB, the Angry Retail Banker! Over on my blog, I offer what I call “An Insider's Take On Retail Banking”, which means that between bouts of raging out and threatening my entire customer base with physical harm, I talk about both life as a branch banker and ways for you to maximize your banking relationship. I am here today to talk about absolutely none of that stuff. Before you all hit the back button on your browser and type “funny cat videos” into … [Read more...] about Countering The Arguments Against P2P Lending
What holds you back from investing? Is it stocks? Do they scare you to death? If they do, I really don’t blame you. All the “ifs” in the beginning can be overwhelming! Which ones do I pick? Where will I find the right stock metrics and information to tell me? Why do they keep bouncing around in price? How long until I have a heart-attack? Would you prefer a way to “stick your toe in the water” and not have to deal with such wild fluctuations? If so, then let me introduce you to the world of mutual funds. “What are mutual funds” you ask? Well, for starters, they are where I … [Read more...] about What are Mutual Funds and How Do I Invest in Them?
Welcome to another quarterly update of how my stock portfolio is doing and whether or not the experts were able to us find good stocks to invest in. Every year I invest a small portion of my portfolio into individual stocks to gain experience with them as well as attempt to increase my wealth. My long term goal is to build a stable portfolio of dividend yielding stocks that will eventually provide me a steady stream of income. If you’ll remember: The last time I bought stocks back in January, I noticed that each of the major financial websites had their own “analyst opinion” section that … [Read more...] about Can the Experts Help Us Find Good Stocks? 9 Month Update
What if there was a really simple way for investing in dividend stocks and knowing which ones were going to do better than others over the next year? What if all you had to do was just read the expert opinions to know how they were going to do? That’s the fun little experiment I started about 6 months ago when I bought my last round of dividend stocks to add to my money design. Of course this is NOT how I picked my stocks and I would NEVER advise you do this. There are plenty of other ways to evaluate the assets of a company. All the same though, I thought it might be fun to note the … [Read more...] about Can the Experts Help Us with Investing in Dividend Stocks? 6 Month Update
Blackjack. Hot-pick stocks. These are the kinds of silly things people usually think about when it comes to doubling their money fast. Unfortunately when it comes to methods like that, the story usually ends with them not only NOT doubling their money but also losing all of their initial investment too. Ever since I was a little boy I’ve been completely fascinated with the legitimate ways that you take one dollar and turn it into two. The truth is that it’s actually pretty easy to do. There are lots of ways how to double your money without having to take a whole lot of unnecessary … [Read more...] about How to Double Your Money the Safe and Smart Way