How are 401K contributions taxed? This is a question I regularly receive about the tax implications of saving for retirement.  Most people understand that contributions to a retirement account have tax advantages, but they often don’t understand what that really means. 401K vs. Roth 401K The main driver of how your contributions and withdraws are […]

What is opportunity cost?  Opportunity cost is a common term in economics, but what does it mean?  People tend to throw this term around frequently, yet many people tend to struggle with it.    An Abstract Idea  While the idea of opportunity cost can seem abstract, at its core it’s a pretty basic principle.  Essentially, it’s the […]

First, let’s with what shorting a stock means.  When you buy shares of a stock, it’s called going long.  Shorting occurs when you sell more shares than you own.  Since a stock’s price is determined by how many people want to buy a share vs. sell one, short selling increases the number of sellers and typically […]

Where to Start Investing in Stocks? Investing in stocks is a great way to build long-term wealth.  However, people are often hesitant to get started because they are overwhelmed by all the decisions they need to make.  So, if you are just getting starting, I recommend investing your money in an index fund. What are […]

Why Do Dividends Reduce Stock Price? Stocks that pay dividends can be a great investment.  You essentially earn interest just for owning the stock, plus you get the bonus of any appreciation.  Dividends also play a role in the price of a stock. A Quick Background For those of you familiar with dividends, feel free […]

In a word – yes! Investing is one of the more proven ways to build wealth over time.  The better question is – Why is investing in stocks a smart move financially? The answer to this question has to do with the long-term growth rate of the stock market and the power of compounding returns. […]