dollar-cost averaging

  • #375: The 2X Rule (and Other Wealth-Accelerating Advice), with Nick Maggiulli

    ByPaula Pant

    Here’s the deal:

    The majority of people who write about personal finance repeat the same tired aphorisms and cliches.

    “Millennials aren’t investing enough,” they’ll lament. “Millennials are amassing wealth at a slower pace than previous generations!”

    But when you ask for their source, they turn up blank. Each writer points to a headline, which sources another headline, in a neverending circular secondary-source-citation that fails to point to any primary data source.

    Nick Maggiulli doesn’t play that game.

    If you haven’t heard the name Nick Maggiulli yet, prepare to meet one of the most original, insightful voices in the media landscape of personal finance and investing. (His last name is pronounced “ma – julie,” and his godfather refers to him as “paper hands,” but that latter point is a different story for another day.)

    Nick is a data scientist with a knack for clear written communication, a rare Venn Diagram intersection of skill sets. He holds a laser-focused interest in the arenas of personal finance and investing, and he’s eager to share fresh, nuanced, evidence-backed takes about savings, spending and investing with anyone who will listen.

    He recently released his first book, Just Keep Buying; the title reflects a user-friendly reminder to continue dollar-cost averaging. It also speaks to the main idea behind wealth creation: accumulate income-producing assets, consistently, for as long as you possibly can.

    It’s an honor to welcome Nick Maggiulli onto the Afford Anything podcast for what I hope is the first of many appearances. In today’s episode, we discuss actionable strategies for managing your money, including assessing your spot along the save-invest continuum, implementing the 2X rule into your spending decisions, and saving half of your inflation-adjusted future raises.

    Enjoy!

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    #241: Ask Paula – Should I Raid My Retirement Savings to Pay for School?

    ByPaula Pant
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    Anton wants to accelerate his flight training so he can get hired within two to three months, rather than two to three years. He has to raid his retirement savings to achieve this. Should he?

    Linda and her husband have their eyes on early retirement, but they aren’t sure what their post-retirement lifestyle will cost. How can they budget for unknown expenses that include travel?

    Joseph contributes 15 percent of his income to both a Roth 457b and Roth IRA. He wants to retire before age 59.5. Given his early retirement goal, should he focus solely on his Roth 457b?

    Henry wants to know how rebalancing and dollar cost averaging interact with each other. Should he rebalance his all-equities portfolio? If so, what approach should he take?

    Joe maxes out his 401k and IRA each year. He can make after-tax 401k contributions, or fund his Vanguard taxable brokerage account. Which should he prioritize?

    As usual, my friend and former financial advisor, Joe Saul-Sehy, joins me on the show to answer these five listener questions. Enjoy!

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    #167: Ask Paula – Should I Pay Off Student Loans While in School?

    ByPaula Pant
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    Angelisa is a college senior with $30,000 in student loans. She has a part-time job, from which she’s saved $2,500. Should she keep saving money, or should she get a headstart on paying down her student loans while she’s in school?

    Mackenzie is also a college senior with some student loans. She recently received a settlement from a car accident. Should she invest this money? If so, how?

    Franchesca is 35 and is carrying $212,000 in debt, mostly student loans. Could she reach financial independence, even with a late start?

    Erica wants to make environmentally-friendly investments. How should she approach this?

    Caroline is 42 and has started making after-tax (non-Roth) 401k contributions. Is this a good idea?

    An anonymous listener is curious about podcasting. How did I get started?

    I answer these six questions on today’s podcast episode, alongside former financial planner Joe Saul-Sehy. Enjoy!

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    #45: Ask Paula – Should I Invest $5,500 in One Huge Chunk? – and More Investing Questions

    ByPaula Pant

    Podcast listener Eva is interested in opening a Vanguard account. She noticed that people need $50,000 to access their personal advisor services. It’ll take her several years before she can access this. What should she do in the meantime? Amy, another podcast listener, wants to invest $5,500 into her Roth IRA in 2017.  Should she…

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    #15: Ask Us Anything – Stocks, Student Loans and Tax Refunds

    ByPaula Pant

    It’s time to open the mailbag. Here are a few of the questions we tackle in today’s episode: Q1: Should I pay off student loans? Or should I invest for retirement? Q2: Should I buy stocks? Or should I dollar-cost average into the market? Q3: I want to build an online business. How do I…