With the outbreak of war in Ukraine, my heart goes out to all the Ukrainians and their relatives and friends around the world. War is a terrible thing, and the needless suffering of innocent people is heartbreaking. That said, during tumultuous times, people often wonder how their personal finances may be affected. This may seem … Continue reading How Does War Affect The U.S. Stock Market?
We've all heard that investing in the stock market is risky and have encountered stories about people losing it all when investing poorly. People say that in order to keep your money safe, you should store it in the bank. That way you know it'll be there when you need it. But is this really … Continue reading Is Investing Riskier Than Saving?
Saving up for retirement is hard work. It can take a lifetime to accumulate a large enough nest egg to live on (see How Much Money Do You Need To Retire), and once you finally do retire, you want to make sure your money never runs out before you pass away. What happens to your … Continue reading A Graphical Representation Of Why Your Retirement Withdrawal Rate Matters
As we are currently experiencing rock-bottom mortgage rates under 3% for a 30-year fixed mortgage, it's only natural to wonder what will happen to home prices when interest rates finally increase again. This is particularly important for first-time homebuyers who are planning to buy a house in the near future but still have to wait … Continue reading Will Home Prices Decrease When Mortgage Rates Increase?
It's commonly said that gold is a safe-haven investment that can protect your portfolio from financial uncertainty. I have often heard that when the stock market falls, people turn to gold as a safer choice for their money. But is that really true? How is gold correlated with other assets, including stocks, bonds, and real … Continue reading What Assets Are Correlated With Gold?
As a young married couple with a small child, my wife and I have talked a lot recently about when would be the right time for us to buy a house. We like the idea of building home equity rather than renting, especially at today's low mortgage rates, and we believe that owning a house … Continue reading What Is It Like To Be A First-Time Homebuyer In The U.S.?
Every year since 2017 (and twice in 2020), Charles Schwab's Modern Wealth Index Survey has asked 1,000 Americans about what net worth they would need to be financially comfortable and what net worth they would need to be wealthy. You can see how their answers have changed over time in the graph below. https://anchor.fm/cozy-nest-egg/episodes/What-Does-It-Mean-To-Be-Financially-Comfortable-e11rt98 The … Continue reading What Does It Mean To Be Financially Comfortable?
Common sense would tell us that net worth increases as income increases. However, it's not as simple as that, as you can see in the infographic I created using data from the 2019 Survey of Consumer Finances. https://anchor.fm/cozy-nest-egg/episodes/Net-Worth-And-Income-e120qmq Net worth increases exponentially relative to income The first observation we can make based on the infographic … Continue reading Infographic: Relationship Between Net Worth and Income