Cryptocurrencies rise to fame, and explosive price growth over the past few years will go down in the history books. In 2017 alone, bitcoins price grew over 2,000 percent, starting at $1,000 at the beginning of the year and topping out around $20,000. With cryptocurrencies becoming more and more popular, will there be another run? Keep reading this guide to discover valuable tips for new crypto investors that will get you started in the world of decentralized finance. [Read more…] about Is Bitcoin a Safe Investment? 9 Tips for New Crypto Investors
Investing
Why 401K’s Are A Bad Idea
Why is a 401(k) a bad idea? Why don’t rich people use them? And seriously, are they worthy of being called a scam?
There’s more than a few reasons that I think 401(k)s are a bad idea, including that you give up control of your money, have extremely limited investment options, can’t access your funds until your 59.5 or older, are not paid income distributions on your investments, and don’t benefit from them during the most expensive period of your life (child-rearing years).
Did I also mention that your 401k account value may plummet—it happened in 2008 and is happening again now with the Coronavirus pandemic.
Oh, and you won’t be able to deploy funds into high return investments like real estate.
Plus, you’ll have to pay hefty fees to the folks on Wall Street. Yes, they’ll collect between 1-3% in fees from you every single year. That will be an estimated $138,336 over your lifetime. Yikes.
Don’t forget to add inflation on top of that too. Inflation will eat away another 2-3% of your gains every single year. So, until you make at least a 6% return, you sadly haven’t made much headway beyond paying off your 401k management fees and keeping pace with inflation.
Then, there’s the dire fact that your 401k withdrawals will get taxed as ordinary income, making them subject to state and federal taxes at the time of your retirement.
Today, the highest federal tax rate is only 37%, but it has floated as high as 94% (1944). There were also three decades (1950s, 1960s, and 1970s) where the federal tax rate never dipped below 70%.
Do you really want to roll the dice on what tax rate you’ll pay at retirement when today’s rates are some of the lowest in the past 100 years?
That list is just the tip of the iceberg for why 401(k)’s are a terrible tool for wealth building and almost never used by the wealthy as a strategy for financial expansion. [Read more…] about Why 401K’s Are A Bad Idea
What Is a Private Placement? A Quick Guide to a Big Investment
If you’re interested in diversifying your portfolio and moving away from basic bonds and stocks, you’re in the right place.
Have you heard of private placement? Put simply, a private placement is the direct sale of company shares (stock) or bonds (loans with interest payouts) to qualified investors. It is a less-common alternative to an initial public offering (IPO), in which a company goes public on a stock exchange to order to sell it shares to the public. [Read more…] about What Is a Private Placement? A Quick Guide to a Big Investment
Forex Trading Strategies that Work: 5 Tried-And-True Tips
Today in 2020, it feels like nearly everyone is trying to become a successful Forex trader. The foreign exchange market—also known Forex or FX— is a multinational marketplace for the exchange of national currencies. Forex trading is the exchange of blocks of currencies, always one specified currency for another. For example, you could trade the U.S. dollar (USD) vs. the Canadian dollar (CAD), the Euro (EUR) vs. the Japanese Yen (JPY), and so on.
While the stock market tends to be better known among the public, the Forex market is actually the largest and most liquid market in the world. Every day, trillions of dollars of currencies are exchanged.
If you’re looking for Forex trading strategies that work, below are five tried and true tips that you’ll want to know. [Read more…] about Forex Trading Strategies that Work: 5 Tried-And-True Tips
Why Would A Stock Go Down After a Good Earnings Call?
In my Instagram stories this week, a follower asked me: “Why would a stock go down after a good earnings call?”
It’s an intelligent and insightful question, because it happens frequently. Most people don’t understand why a stock price drop would happen following the release of good news.
However, there are three common forces behind this phenomenon that can cause it. Let’s explore each of them in detail below. [Read more…] about Why Would A Stock Go Down After a Good Earnings Call?