Where can I find a good credit card?
I need a loan calculator.
I need a mortgage calculator.
Do I need life insurance?
You need life insurance if your death will cause hardship for someone else. If you think your family will manage fine without additional funds to replace your lost income then do not do it. More here.
How should I invest for the future?
I am risk averse should I own stocks?
Anyone with a time horizon of 5+ years should own stocks along with other asset categories. Not owning stocks could keep you from beating inflation. The key is to make sure you invest in domestic and foreign stocks with limited exposure to small and mid size companies.
I have a high tolerance for risk; should I own bonds?
Yes. Every portfolio needs exposure to bonds. Between 2000 and 2010 bonds beat stocks. Owning bonds will reduce the overall volatility of your portfolio.
I am looking for a single moderate to conservative investment choice?
Here are two of my favorite balanced funds:
Vanguard Balanced Index Fund (VBINX) is also a good balanced fund.
How can I gain wide exposure to the stock market?
The Vanguard Total World Stock ETF (VT) gives you instant exposure to the global stock market at an incredibly low price of 0.25%!
What are target date retirement funds? Should I own one?
Target date retirement funds are balanced funds that investors can purchase and hold until retirement. Usually the manager will reduce the stock (or more volatile assets) and increase bond holdings (or the less volatile assets). These funds are a good choice for people who seek to own a single fund and do not want to bother with building their own portfolio. I will have more to say on this subject in the near future.
What is an IRA?
IRA stands for “Individual Retirement Account.” This type of account is intended for retirement saving / investing. See the investment accounts sections for details.
What is a ROTH IRA?
One key difference between a ROTH and a traditional IRA is the tax free withdrawal benefit for the ROTH. On the other hand you cannot add pre-tax money to a ROTH IRA but you can with a traditional IRA. See the investment accounts sections for details.
What kind of mortgage should I choose?
The 30 year fixed mortgage remains the best choice for most people. It has the following advantages:
- A predictable fixed payment for the 360 months duration of the loan;
- Lower payments than a 15 year loan;
- Lower interest than a fixed interest only loan;
More on this subject here.