What’s My Marginal Tax Rate?

[Note from Editor: This is a guest post from reader Bob's not my name.] Did you know that the highest marginal tax rates are paid by families with students in college? The modern tax code has made it very difficult for Americans to know their marginal tax rate. Marginal rate is a critical criterion for […]

Your Traditional IRA is Life Insurance and an Emergency Fund

[This is a guest post from Bogleheads investment forum participant Bob's not my name.] Roth IRAs are touted as backup emergency funds: you can withdraw your direct contributions at any time for any reason, without penalty (and, of course, without tax, because you already paid it). This is a very nice feature. It allows young […]

Stocks or Bonds in Roth?

[This is a guest post from Bogleheads investment forum participant Bob’s not my name.] A number of spurious arguments are made for holding riskier assets in your Roth IRA as opposed to a Traditional IRA. Let’s examine them. For simplicity, we’ll refer to risky assets as stocks and less risky assets as bonds, but the […]

How to Save $4,000 in Your Graduation Year — Part 1: Taxes

[This is a guest post from Bogleheads investment forum participant Bob's not my name.] If you are a college senior or if you graduated this year, pay attention. The year in which you finish college and enter the workforce presents unique tax circumstances. In addition, you may think you are achieving financial independence from your […]

Looking At the Big Financial Picture

[This is a guest post from long-time reader KD.] In this day and age of financial blogs, coupon sites, and one-click online shopping, savings are easy to find and easy to replicate. The question I end up asking myself is what difference did these savings have on my bottom line? More often than not, in […]

Flexibility and Retirement Planning

This is a guest post by Mike Piper. Imagine this scenario: An investor (we’ll call her Susan) retires with a $700,000 portfolio. She plans to withdraw $28,000 in the first year of retirement and adjust that amount upward each year in keeping with inflation. In other words, Susan is using a 4% withdrawal rate–typically considered […]