I've heard a lot of talk lately about the issue of investors and investment advisors who claim to be investing "passively" but are really just actively managing low-cost index funds. One reason this issue is interesting is that most research into the superiority of index investing seems to ignore it completely. For example, when Jack Bogle says the … [Read more...] about The many flavors of investing activity
Some people like luxury European automobiles, high-end kitchen ranges, and very old wine. As far as I can tell, these things are all outstanding, but they have one thing in common: they're expensive. When I say "expensive," I don't mean they're not worth every penny — just that they cost a lot of pennies. So as a person who doesn't have a lot of pennies, I … [Read more...] about Affordable Luxuries #1: candles, chocolate, car washes
I am working on a project for my beloved readers that has quickly spiraled out of control and is taking me much more time to complete than even I had contemplated. But one key point that I've learned is that as a self-employed person, you should use your Employer Identification Number, or EIN, for absolutely everything connected to your business. This may sound … [Read more...] about Self-employment tip #1: use your EIN for everything
A current fad in the world of personal finance and investing is so-called "tax-loss harvesting." If you're not familiar with the concept, tax-loss harvesting refers to the perfectly true observation that up to $3,000 in capital losses can be deducted from ordinary income each year, and it's one of the biggest selling points of "robo advisors," the automated investing … [Read more...] about You can pay someone to harvest capital losses for you, but why would you?
If there are two axioms that financial graybeards treat as indisputable, they are: Americans don't save enough money for retirement; and the government needs to do more to encourage retirement savings. With respect to the first axiom, we're treated to serious-looking charts about the "retirement savings gap" and told how few people are taking advantage of … [Read more...] about Why should retirement savings be financed out of current income?