The takeaway: We just might outlive our money if we don’t *truly* grasp the power of compound interest and ignore the money habits of our peers. Here’s how a single purchase morphed into real money. $$$ I knew what the price tag said, but not what the thing would really cost. Because price never tells … [Read more…]
The takeaway: When they first hit millionaire status, the median household income of millionaires was $89,167. Their household income is less important than the habits these millionaires built to create financial independence. Here are the habits, and how failure to follow them, resulted in the complete derailment of one famous attorney’s retirement. $$$ This post … [Read more…]
The takeaway: GameStop is a declining company, whose stock enabled one investor to turn $53,000 into $48 million in barely 18 months. The stock’s unlikely investors have driven its share price to new heights, savaged Wall Street hedge funds, and caught the eye of Congress, due to fears their actions are roiling financial markets. It’s … [Read more…]
The takeaway: Fixed annuities are like CDs, except you earn a higher rate. Even better, your interest grows tax deferred. But there are steep penalties for early withdrawal. And tax treatment isn’t particularly favorable to your heirs. Look before you leap. $$$ Part six in a series on annuities that will appear here from … [Read more…]
The takeaway: equity indexed annuities allow you to participate in the stock market, with minimal losses and some gains. However, your market gains are substantially limited by fees and contract restrictions. Plus, obscure interest calculations make it hard to verify you’re getting the returns you were promised. Better alternatives exist, so think twice. (Maybe three times.) … [Read more…]