How to fund your life in the future
Exchange traded funds vs mutual funds What they have in common: They can be in cash accounts or retirement accounts. They hold a variety of stocks/bonds/commodities etc. Where they differ: ETFs: Generally follow the trend of earnings of an index such as S and P 500. Can be actively managed or passively. Have lower costs. Have lower taxation only when sold. Transactions are between stockholders and buyers not managers of the fund. Traded on the exchange. Options can be done. More liquid investment. Can be traded quickly. Have leveraged etfs that perform better than the index fund by using margins. Can specify investment industries. Have not been around as long as mutual funds. Mutual funds: Generally managed. Higher cost. Not always follow indexes. You buy in and it is not as liquid. Takes longer to get cash out. Gets taxed by capital gains. Not traded on exchange. No options. No…
Assets build wealth: how the fiscal mind gains assets
Stock market versus real estate A common question that comes up is the stock market yields versus the real estate market yields. Honestly they have similar yields and both increase in value over time. You just need to invest and not take it out during a dip. They will both fluctuate up and down. Time invested is the most important factor. Similarities are: Yields Go up over time Fluctuating You could lose if you pick wrong You will be taxed in some way Both outpace inflation Better to be in sooner for longer Ride out dips Could loose investment if value goes to $0 Differences are the following: Stocks: More fluid (quick to get cash back) Taxed as income and as gains each year Many different types Many different ways of making income (ETFs, options, individual stocks, mutual funds, bonds, mixed securities, commodities, REITs, etc) Real estate: Less fluid (takes…