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Category: Smart Money

Invest in Peer-to-Peer Lending with Lending Club, Returns and Risks

I have been lending in peer-to-peer lending networks like Lending Club and Prosper for about ten years now. Today, I want to share with you some of the things I have learned, and you can decide if this is the Read more…


The 4% Safe Withdrawal Rate Retirement Drawdown Rule

The 4% Safe Withdrawal Rate (SWR) was first introduced by William Bengen in 1994 and later supported by the Trinity Study in 1998. The rule basically states that when you hit retirement age, you can withdraw 4% of your total Read more…


IRA and 401(k) Early Withdrawal Penalty

Why would you give the government an extra cut out of your retirement nest egg if you didn’t have to? We all work too hard and save too diligently to just willingly give the IRS a bigger piece of our Read more…


Different Types of Saving and Investment Vehicles

There are many different financial products out there that can help you achieve your saving and investing goals. Each type is better at meeting specific financial objectives, while others are better for different purposes. When you start investing, it is Read more…


Tax-Efficient Retirement Withdrawal Strategy

When you stop working and have to start withdrawing money from your retirement accounts, you have to decide the best way to withdraw money from different accounts. Do you take money out of your tax-free accounts like Roth IRA and Read more…


The Best Accounts for Different Investments

Asset Location is a tax-efficient investing strategy to help you minimize taxes and grow your investments faster by holding investments in the best-suited investment accounts.  This strategy leverages the fact that investments in Roth IRA and 401(k) are tax-free, and Read more…


Compound Interest Formula and Examples

One of the most powerful forces in finances is compound interest. Compound interest is interest that is paid on the principal and also on the interest that previously earned on your investment. This helps you grow your investment at an Read more…


Compound Annual Growth Rate (CAGR) Calculation and Examples

You may have come across references such as the S&P 500 has grown 10% annually for the past 30 years or something to that effect. You may wonder what that means and where did they get that number. When someone mentions Read more…


Your Savings Might Be Losing Money

One of personal finance best practices is to have 3 to 6 months of an emergency fund. Since the money has to be accessible and you can’t risk losing the money, the best place to keep your emergency fund is Read more…


18 Common Retirement Investing Mistakes and How to Avoid Them

Learn from your mistakes is good advice, but learn from other people’s mistakes is even better. I’ve been investing since 1996. In the process, I have learned a lot, mainly from trial and error. Today, I’d like to share some Read more…