Since the White House finally got around to announcing the outlines of their tax reform plan today, I want to briefly address an issue that's generally ignored in discussions of income tax rates and brackets. Marginal tax rates mean you pay taxes at lots of different rates You often hear as shorthand that "the wealthy pay a 40% income tax." … [Read more...] about Why “narrowly focused” middle-class tax cuts overwhelmingly benefit the wealthy
If you have your eyes open, one of the first curious things you notice about the "FIRE" community (Financial Independence, Retire Early) is their fixation on real estate. For example, Mr. Money Moustache "retired" from his job as an engineer in order to become a residential property manager, writing that "many of us consider property ownership to be a key part of … [Read more...] about Financial independence, early retirement, and real estate
One of the great advantages of being self-employed is the ability to open and manage your own small business retirement account. Employed people have to either take or leave their employer's 401(k) or 403(b) plan offerings, regardless of the quality or cost of the funds it offers, while the self-employed get to choose their own plan provider and pick exactly the … [Read more...] about Solo 401(k) accounts from Vanguard, with beneficial illustrations and calculations
As you may have heard, US stocks are expensive. You may even think you know what that means. Personally, I have no idea. I buy organic milk. Organic milk costs more than milk from corn-fed antibiotic cows. In other words, it's "more expensive." I buy t-shirts made by union workers in downtown Los Angeles. They cost more than t-shirts made in … [Read more...] about What should stocks cost?
I've written elsewhere about the Robinhood app and Robinhood margin accounts (branded as "Robinhood Gold"). One issue raised on the Saverocity Forum was that Robinhood's margin interest rates were high compared to those offered by Interactive Brokers, generally considered one of the cheapest sources of margin credit for retail investors. I … [Read more...] about All-in margin account rates at Robinhood and IB