The Motley Fool

DECEMBER 15, 2024

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. If you want to beat the professionals, your best bet is to buy a broad-based index fund and just hold onto it.

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The Motley Fool

JUNE 9, 2024

Buffett's Q1 buys and sells Given his success, reputation, and willingness to share his wisdom, Buffett's moves are closely followed by investors big and small, and Berkshire reports the stocks it buys and sells each quarter in its 13-F filings. In the first quarter, Berkshire bought three stocks.

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The Motley Fool

JANUARY 24, 2024

It's a common misconception that to build wealth in the stock market over the long term, you need to invest in a portfolio of individual stocks. While it's certainly possible to achieve superior returns with individual stocks, it isn't a requirement for building wealth. Here are three to consider.

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The Motley Fool

JULY 31, 2023

Many people have been forced to prioritize their spending and saving habits, and while some have seen their retirement accounts take a hit due to market fluctuation, others have actually managed to save at record levels. Despite high inflation and a volatile stock market, Americans saved and invested more than ever last year.

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The Motley Fool

SEPTEMBER 5, 2024

Investing in the stock market has proven to be one of the best ways to generate long-term wealth. That means roughly 85% of actively managed funds -- the term used for investment funds that try to beat the market by buying and selling various stocks -- are actually unable to beat the market over the long term.

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The Motley Fool

FEBRUARY 15, 2024

stock market has been dominated by large-cap growth stocks ever since the Federal Reserve began to increase interest rates in March 2022. First, established companies with a strong competitive advantage usually do not need to borrow money to fund their growth, so they are less sensitive to the Fed's interest rate actions.

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The Motley Fool

MARCH 19, 2025

The stock market is very good at building wealth in the long run. That's why a broadly diversified index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO) should be at the top of every investor's first shopping list. That's not too shabby, compared to a peer group of more than 920 ETFs with at least 10 years of market history.

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The Motley Fool

OCTOBER 21, 2024

Enter Vanguard exchange-traded funds (ETFs), the brainchild of investing legend John Bogle. These funds typically boast lower turnover rates compared to actively managed alternatives, a characteristic that substantially reduces investors' tax liabilities. Since its inception in 2010, the fund has achieved an impressive 13.4%

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The Motley Fool

APRIL 6, 2024

The problem with raiding a retirement plan It's never fun to face a financial penalty, whether it's a fee for paying a bill late or an IRS penalty for underpaying your taxes. A potentially even bigger problem is that when you remove funds from an IRA or 401(k), they no longer stay invested.

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The Motley Fool

NOVEMBER 30, 2023

Those accomplishments make Buffett an excellent source of investing advice, and one recommendation stands out from the rest: Buffett has often said an S&P 500 index fund is the most sensible way for most investors to gain exposure to the stock market. Here's why. The S&P 500 provides diversified exposure to the U.S.

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The Motley Fool

APRIL 22, 2024

The stock market could make more financial sense Generally speaking, if you're investing for a future that's still a few decades away, you're going to get better long-term returns from the stock market than CDs. Over the last 50 years, the stock market has averaged annual returns of roughly 10%.

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The Motley Fool

FEBRUARY 27, 2024

stock market currently stands on shaky ground. The stark difference between high borrowing costs and the rise of powerful growth trends like artificial intelligence (AI) and weight-loss drugs has recently drawn investors toward a small handful of large-cap stocks. Consequently, large-cap U.S. Image source: Getty Images.

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The Motley Fool

DECEMBER 21, 2023

Technology has been a dominant force in the stock market for the last two decades. As a result, many of the top-performing exchange-traded funds (ETFs) in 2023 have an undeniable technological skew to them. A comparison The table below outlines the most important metrics for each fund. Image source: Getty Images.

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The Motley Fool

AUGUST 21, 2024

A traditional IRA gives you an upfront tax break, lowering your taxable income by the amount of your contribution. A Roth IRA saves your tax break for when you withdraw money from the account, potentially decades later. At that time, your withdrawals can be tax-free. The catch is that the conversion is taxed.

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The Motley Fool

SEPTEMBER 28, 2024

These accounts allow people with qualifying high-deductible insurance plans to set aside $4,150 for single plans and $8,300 for families out of pre-tax dollars. HSA funds can be invested HSA contributions can be invested , allowing the money to grow. Remember, HSA growth is tax free as long as it is used for medical expenses.

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The Motley Fool

AUGUST 20, 2024

How to start building your retirement savings The best way to get started with your retirement savings is through tax-advantaged accounts. The value of 401(k)s and IRAs is that they save you money on taxes. With traditional plans, your contributions are tax-deductible. Target-date funds are a simple, effective option.

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The Motley Fool

SEPTEMBER 2, 2024

Roth IRAs have a unique tax break you don't receive from popular accounts like 401(k) or traditional IRAs. They allow you to contribute money that's already been taxed and then take tax-free withdrawals in retirement, as long as you're 59 1/2 years old and made your first contribution at least five years ago.

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The Motley Fool

APRIL 30, 2024

This type of account is great for your emergency fund and any upcoming savings goals you have. stock market has historically grown by an average of about 10% per year over the long run. It can also cost you more money every year at tax time. Long-term capital gains tax rates are lower than income tax rates.

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The Motley Fool

AUGUST 26, 2024

And to that end, it pays to do a few key things: Live below your means Follow a detailed budget Invest in a tax-advantaged retirement account Let's break each action item down. Plus, you won't pay taxes on capital gains year after year in a traditional IRA or 401(k). And with a Roth, you'll never face taxes on gains at all.

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The Motley Fool

SEPTEMBER 22, 2024

percentage point cut to the federal funds rate, and further cuts are likely ahead. CD rates are closely tied to the federal funds rate, which means saving money in a certificate of deposit could become less lucrative in the near future. An ETF is basically a basket of stocks that trades on a stock exchange as a single investment.

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The Motley Fool

OCTOBER 28, 2024

stock market, recently hit a fresh all-time high. Isn't investing when the stock market is at an all-time high literally the exact opposite? The short answer is that despite the market's strong performance, it's still a great time to start investing with an IRA.

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The Motley Fool

MARCH 14, 2025

The stock market has many Americans feeling rattled about the future, as prices continue to sink. Is it really safe to contribute to your retirement fund when the market is quickly losing value? Is it really safe to contribute to your retirement fund when the market is quickly losing value?

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The Motley Fool

JULY 2, 2024

It carries more risk, because markets can rise or fall and the returns are not predictable. However, historically, stock market investments generate higher returns than savings. and is often used as a benchmark for stock market performance. You don't need to research individual stocks to invest. Even better?

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The Motley Fool

MARCH 24, 2024

See, in the long run, the stock market is likely to deliver a much higher return on your money than CDs. So when you're investing for a far-off goal, like retirement, a stock portfolio that you build in an IRA could be a better bet. In 30 years, your $20,000 will be worth $201,000.

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The Motley Fool

JULY 9, 2023

Image source: Getty Images Consistently funding an IRA is a great way to set yourself up for a financially secure retirement. When you tap your IRA ahead of retirement age The IRS gives savers who put money into an IRA a tax break on their contributions. But there, you lose the benefit of tax-free contributions.

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The Motley Fool

JULY 7, 2024

Investing too conservatively, for example, could leave you short on funds for your senior years. That is why it's generally a good idea to load your retirement plan with stocks -- either individual companies, if you're comfortable choosing them, or S&P 500 index funds. Image source: Getty Images.

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The Motley Fool

MAY 12, 2024

Last year's report indicated the combined Social Security trust funds would be depleted in 2034. Social Security's trust funds will last until 2035 The latest trustees report estimates the combined Social Security trust funds will last until 2035, one year longer than the previous projection. Image source: Getty Images.

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The Motley Fool

JUNE 27, 2024

Money in your 401(k) account grows in a tax-advantaged way. If it's a traditional IRA, you'll get an upfront tax break, as you can deduct your contribution each year from your taxable income. stock market via a low-fee S&P 500 index fund and/or an even broader index fund.

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The Motley Fool

SEPTEMBER 21, 2024

The chart below shows median before-tax incomes by age demographics among the respondents to the Current Population Survey. Age of Respondent Before-Tax Median Household Income 15 to 24 $54,930 25 to 34 $85,780 35 to 44 $101,300 45 to 54 $110,700 55 to 64 $90,640 65 and older $54,710 All respondents $80,610 Data source: U.S.

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The Motley Fool

MAY 8, 2024

Social Security's main source of funding is shrinking Social Security gets the bulk of its funding from payroll tax revenue. But in the coming years, Social Security is expected to see a notable decline in payroll tax revenue as more and more Americans reach retirement age and exit the labor force in short order.

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The Motley Fool

MARCH 9, 2024

Have much of your nest egg in stocks The stock market is one of the best ways to build wealth over the long run, and just because you're in or near retirement doesn't mean you should shed all your stocks. Your taxable earnings shrink by $7,000, shrinking your tax bill. Earn $80,000 and contribute $7,000?

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The Motley Fool

JULY 31, 2024

Any funds your employer puts into your 401(k) can be invested. A $3,000 match today could be worth $30,000 in 30 years' time if your 401(k) is invested at an average annual 8% return, which is a bit below the stock market's average. For one thing, any gains in your account are yours to enjoy tax-free. A better bet?

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The Motley Fool

JANUARY 3, 2024

Heading into 2023, the sentiment surrounding the stock market wasn't the most positive, as many Wall Street analysts and economists anticipated a potential recession and continued downturn from 2022. Thankfully, that wasn't the case, and the stock market had one of its better years in recent times.

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The Motley Fool

JANUARY 2, 2024

There's no question the stock market is one of the best tools people have at their disposal to build lasting wealth. Even those with zero experience with the stock market can still benefit. By investing in this top index fund , you are on the path to improving your financial well-being. But there's good news.

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The Motley Fool

MAY 29, 2024

The stock market is a great tool for protecting and growing your hard-earned nest egg, and by deciding to take the leap, you already have an advantage. Nearly 30% of Americans don't invest in the stock market at all , according to Gallup data. What's an exchange-traded fund? stock market.

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The Motley Fool

AUGUST 10, 2024

But last quarter was the biggest warning yet that Buffett doesn't see a lot to like in the current stock market. He views the current tax code for corporations as very favorable, and he's willing to pay taxes now, so he can avoid higher taxes later. billion worth of Bank of America (NYSE: BAC) stock since mid-July.

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The Motley Fool

AUGUST 14, 2023

I have an IRA that I funded up until a few years ago, and I have a solo 401(k) that I contribute to regularly at present. I also have an HSA whose funds I'm hoping to carry forward into retirement. Although that account doesn't give me any tax breaks, it allows me to access my money when I want.

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