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Want to Outperform 98% of Professional Mutual Fund Managers? Buy This 1 Investment and Hold It Forever.

The Motley Fool

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. So, the odds are already against fund managers from the start. Image source: Getty Images.

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5 Little-Known Tax Deductions You Might Be Able to Claim

The Motley Fool

Image source: Getty Images I have yet to meet a human being who enjoys doing their taxes. I don't think they exist, and if I ever met someone who told me they enjoyed the process, I would assume they were an alien from another planet disguised as a human being who has no understanding of what taxes are.

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You Can Outperform 98% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

And in an ironic twist, the less competitive you are, the better you'll be able to stick with a strategy that can lead you to after-tax returns that beat 98% of professionally managed mutual funds. All you have to do is buy a broad-based index fund and hold it for years. That's why mutual funds charge fees.

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These Are My Favorite Accounts for Building a Millionaire Retirement

The Motley Fool

Both offer excellent tax advantages. You'll need an employer that offers a 401(k) to use a 401(k), but gobs of companies offer them these days. After all, millions of us are not stock-picking geniuses and can get overwhelmed and confused looking at the thousands of stocks and funds (and bonds) out there. That's generous!

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The Average American Age 65 and Older Has $279,997 Invested in a 401(k). 4 Strategies to Help You Beat the Average Before You Retire

The Motley Fool

Mutual fund giant Vanguard has officially crunched the numbers. Start as soon as possible, even if you're not really ready The reasons for not participating in a company-sponsored 401(k) plan are reasonable enough. You can contribute up to $23,000 of your wages to a 401(k) account in 2024, all of which is tax deductible.

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4 Reasons to Avoid a 401(k) for Your Retirement Savings

The Motley Fool

The bulk of them are managed by mutual fund companies, with most of those companies limiting your investment choices to their family of funds. In fact, you may not even have access to that fund company's entire fund lineup. Don't misunderstand. Don't take such a decision lightly.

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The Unfortunate Truth About Maxing Out Your 401(k)

The Motley Fool

Money in your 401(k) account grows in a tax-advantaged way -- either by postponing taxation via a traditional 401(k) or by avoiding it altogether via a Roth 401(k). Funds in your 401(k) can't be withdrawn any time you'd like without triggering taxes and penalties. It's always smart to find out what kind of fees you'll face.