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Get our FREE Guide:  21 Days to a Better Financial Life! Get My FREE Guide! Are you trying to get your financial house in order? Then you’re probably looking for the best apps to help you with your journey. Today, I’m comparing two of the most popular options:  YNAB vs Personal Capital. You’ll learn which of these two services is right for you and how they can help you meet your financial goals. Let’s start with […]

There’s no denying that society still has numerous challenges to overcome, and some of those come down to a person’s skin color. It’s no secret… The post How to Build Wealth in a Society Filled With Inequality appeared first on Savings and Sangria.

Like birds chirping at the rising sun, investors tweet “buy the dip!” at the first hint of the stock market dropping. While it makes sense at first blush, this is a losing investing strategy. Let’s discuss why. The Basic “Buy The Dip” Argument Buying stocks is a risk. The price might go down after you buy it. But holding onto cash is a risk, too. That cash could be invested—and potentially growing with the market! This is the opportunity cost of not investing. Each decision has a risk and a reward. The risk is that the market moves in the wrong direction. The reward is that the market moves in your favor. So how do we answer whether ‘buying the dip’ works? Sadly, we can’t predict what the market will do in the future. But we can look at previous market data. This is what professionals typically do. We’ll do that today. Two Kinds of “Buy The Dip” Before I insult too many people, let’s baseline ourselves. There are two common definitions of ‘buy the dip.’ As my good friend Andy wrote: I call it “timing the market” when people tell me they are mostly a cash position waiting for a big crash. A singular event that they will almost certainly miss (but you can't tell them that).”Buying the dip” is what I call my DCA strategy of buying repeatedly and often.— Your Friend Andy 📺💸 (@OhHaiAndy) May 11, 2021 Scenario 1: You’re holding lots of cash for many years, waiting for a big crash. And then you buy after the crash. This is certainly a form of “timing the market.” But is it the same as “buying the dip?” Scenario 2: You’re holding a small amount of cash, expecting to deploy it in the market in the next few weeks. You wait for a single “red day” of stock market decreases before buying. Even if the market only drops ~1%, you “buy that dip.” Rinse and repeat on a weekly or monthly basis. I consider both these scenarios to be a form of bad market timing. I say both are “buying the dip.” But Andy and many others disagree. One argument they make is this: since they are dollar-cost averaging (DCA) anyway, why not wait for a red day to execute their purchase? Buy low—it makes sense. And in Andy’s defense, I do see a significant difference between the two scenarios. It’s not just my opinion. The difference between the two scenarios is backed up by analytical data. Holding onto cash for years is a huge losing scenario. It could cost you millions of dollars (seriously) over the course of a 30-year investing timeline. It underperforms basic dollar-cost averaging by as much as 800% in historical backtests. Holding onto cash for a few weeks is a slightly losing scenario. Over most historical 30-year investing periods, attempting to buy every dip would drag your overall portfolio down

This week FI Guy puts on his futurist hat and time travels to the year 2040 to talk about global trends and how things like crypto currencies, robots and debt might impact the economy and our portfolio.

Dividend Increase Announcement On May 10th, Viatris announced their 1st dividend. This will increase their dividend per quarter from $0.00 to $0.11. It is payable on June 26th for shareholders of record on May 24th. The new quarterly dividend represents an annualized dividend amount of $0.44 per share as compared to the current annualized dividend […] The post Viatris Announces Their 1st Dividend in 2021 first appeared on MoreDividends.com.

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Wish you could shop on a reasonable payment plan for your favorite clothing, handbags, jewelry, and skincare products, but not pay interest? It’s possible with Afterpay, a buy now, pay later App that allows you to pay for all your new goods over 6 weeks, interest-free.   Using Afterpay also allows you to shop all your favorite brands like NARS, Ugg, and Pandora. If you’re wondering how Afterpay works, if it’s safe, and how it compares […]

When I was in the third grade, I learned that being Asian was different. I was having lunch at the school cafeteria, surrounded by kids with sandwiches, chips, and soft drinks. On this homogenized canvas, my lunch was a red brushstroke that clashed against the pastels of the familiar. Not only did the contents of my lunch stand out, but so did the box in which it housed them. My lunchbox took the form of […]

Happy May, friends! Can you believe we’re here already? I have a couple bits of super exciting news here for Femme Frugality, but I can’t share them just yet. Be sure to subscribe to the email list to stay up to date on the latest! In the meantime, there’s plenty of money news outside this little corner of the universe. Let’s talk about some of it. Taxes We’ve talked about taxes for the past couple […]

Around 82% of Americans said their finances were affected by the pandemic and the fallout according to a recent Fidelity survey. If you’re planning on retiring in a few years, that can be a really scary thing. I want to share a resource that can help you get back on track with your retirement plan!  […] The post 5 Key Tips to Help to Get Your Retirement Plan Back on Track appeared first on Simplify […]

Figuring out how to invest $500,000 can be exciting and stressful, mostly because this much cash can make a huge difference in your life. If you can invest half a million dollars and leave it alone for a few decades, you can easily grow your nest egg to be worth more than $1 million dollars. Then again, how you invest $500,000 dramatically impacts your returns, and thus how much cash you end up with in […]

You’ve mastered the best ways to save money, now where do you stash your cash? Savings accounts are an essential part of your finances. Ally and CapitalOne 360 Performance Savings are two of the most talked about savings account options. Let’s see how both of these savings accounts stack up and which one might be best for you. Ally vs CapitalOne 360 Performance Savings Review Summary Both Ally and CapitalOne 360 Performance Savings offer high-interest […]

Investing is a key part of anyone’s path to financial freedom. But how do you get started? Whether you are kicking off your investment journey or looking to level up, the best investing apps can help. With so many apps to choose from, we rounded up the top investing apps so you can find one that fits your financial goals. We reviewed them based on ease-of-use, fees, investing options, features, and more. Here our our […]

Chimamanda Ngozi Adichie delivered the ultimate mic drop in her 2012 TEDTalk “We Should all be Feminists.” I hope she doesn’t mind me slightly altering it to say “We should all be financial feminists.” Financial feminism is the child of feminism, a movement rooted in the fight for equality. In the money nerd world, people such as myself have put the focus on fighting for financial and economic equity- meaning equal pay, childcare, financial literacy, […]