Tag: investing

Target-Date Funds: Lazy Win or Fee Trap?

Index target-date funds cost 0.08% to 0.12%. Their lookalike active cousins cost 0.68%. See the dollar math, the taxable-account trap, and when DIY beats a TDF.

The 3.8% NIIT: Who Pays and How to Dodge

The 3.8% Net Investment Income Tax hits high earners with dividends, gains, and rent. See the thresholds, worked examples, and legitimate ways to cut the bill.

Empower Review: Free Dashboard, Paid Pitch

Empower's free dashboard is good for net worth and fee checks. On $500K, its 0.89% fee plus fund costs trails a three-fund portfolio by $305K over 20 years.

Direct Indexing: Worth the Fee?

Direct indexing costs 3 to 13 times more than an index ETF and only pays off through tax-loss harvesting. Here's the break-even math for tech-worker incomes.

Concentrated Stock: Sell or Exchange Fund?

Exchange funds defer tax on a concentrated stock position for 7 years but cost 1%+ a year and require $500k+ minimums. Here's when they actually beat selling.

Donate Stock, Not Cash

If you give to charity and hold appreciated stock, writing a check is the worst option. Donating shares skips capital gains tax and still deducts full value.

I Bonds and TIPS

A normal bond fund does nothing when inflation spikes: the coupon is fixed and inflation eats it. I Bonds and TIPS exist to solve exactly that problem.

Betterment vs Wealthfront vs DIY

Betterment and Wealthfront charge about 0.25% to automate a portfolio you could build yourself for less. The real dollar cost, and who it is worth paying for.

Rebalancing: When and How

Rebalancing is risk control, not a return booster. How drift actually happens, the calendar-plus-band approach, and how to do it without a big tax bill.

Mortgage Payoff vs Investing

Extra principal or invest the difference? Compare your mortgage rate to your after-tax return first, then let liquidity, taxes, and psychology break the tie.

Where to Park Cash

Cash sitting in a big-bank checking account earning near nothing is the most common, most fixable money leak for high earners. Here's where it should go.

Rent vs Buy: The Actual Math

Renting isn't throwing money away. Most of an early mortgage payment is interest, which is money you never get back either. Here is the real rent-vs-buy math.