Posts tagged Building Wealth
Would Getting a Paper Divorce Help Financially?

Yes, getting a paper divorce can help you financially but it can also be a financial negative depending on your personal situation. As with most things with Personal Finance, the answer is it will depend on a large number of factors related to your family's finances. Below are a few of the consideration that immediately spring to mind, which you will want to explore.

Read More
How does one weigh the trade offs between bootstrapping a small business and seeking Venture Capital?

While the concerns over the slower bootstrap method are legitimate and should be considered, I still believe bootstrapping for as long as possible is the way to go for the vast majority of enterprises because of the significant potential downsides of VC and Angel funding. Ultimately the question you want to ask is if it is possible to build your business through bootstrapping considering the concerns you identified. If it is, then I recommend going with bootstrapping as long as you can. Here are potential challenges with getting funding:

Read More
Can I ask the IRS to allow me to return an IRA distribution after the 60 day rollover period?

Yes, there is potential for relief from the IRS, but ignorance of the rules and weakness in English are most likely going to get denied. At this point you will want to contact a financial advisor and a CPA to help you with this. The CPA will help you in dealing with the IRS and a good financial advisor . . . .

Read More
Why do stock prices rise over time?

Your analysis is actually correct, in that cash flow and growth rates are constantly changing, and generally they are changing for the better. As a result, future cash flow increases at a faster rate than previously expected and the stock price is adjusted up due to these increasing cash flows. Because no one can predict the future, as new facts become apparent they changes the expectations of future cash flows. This, of course, assumes . . . .

Read More
Is it too early to start a portfolio for my one-year-old child?

It is definitely not too early and I commend you for taking advantage of the incredible returns you can get by starting an account at one year old. I am assuming your child will not need the money for at least 18 years so a stock-heavy portfolio would be appropriate. I would even be comfortable with a 100% stock portfolio assuming . . . .

Read More
How do I find the right financial advisor for me?

Finding the right adviser is difficult but not impossible. You will want to research advisers and then set up appointments with at least three or four of them. An adviser should be a fiduciary, should not be a commissioned. . . .

Read More
Should we invest in stocks or pay off student loans with money gifted to us from our wedding?

I encourage the two of you not to consider this as an either/or situation, but instead use the money to provide for multiple goals. Focus on multiple goals to help you achieve both financial stability and a happier life . . . .

Read More
What is the safest way to earn a higher interest rate on our money than by using our traditional savings account or a money market account?

In order to stay within your "safest" criteria, you would want to stick with an FDIC or NCUA insured account. You can get slightly higher interest rates by shopping around for high-interest savings accounts from online banks and credit unions. Currently (November 2018), rates on savings accounts are….

Read More