DR 110: The Complete Guide to Cash Back Credit Cards

Guide to Cash Back Credit Cards

Recently two readers emailed me about cash back credit cards. Their questions prompted me to put this guide together to help readers better understand, compare, and choose a cash rewards credit card. First let’s look at the emails. From a reader named Pop: You have a great post on a strategy to use cash back […]

Published or Updated: September 25, 2014

DR 109: The 5-Year Rule on Roth IRA Conversions

5 year Roth IRA Rule

The 5-year rule on Roth IRA distributions comes in two flavors. The first applies to earnings from Roth IRA contributions. We covered the rule in Podcast 105. The second aspect of the rule applies to distributions of Roth IRA conversions. That’s what we’ll look at today. Listen to this Article 1. The Two 5-Year Rules […]

Published or Updated: September 24, 2014

DR 108: Should You Pay Off Your Mortgage or Invest for Retirement?

Pay Off Mortgage or invest

Imagine you’ve just inherited some money. The amount just happens to match the outstanding balance on your mortgage. Now you have a decision. Do you pay off the mortgage or invest the money for retirement. That’s the question facing a podcast listener named Shelly. Here is her email to me: Great job on your podcasts. […]

Published or Updated: September 23, 2014

DR 107: Monthly Investment Update–September 2014

Asset Allocation September 2014

It’s time for our monthly investment portfolio update. In each update I run through the tools I use and the results of my investments. I show you the good and the bad. We’ll even cover some mistakes I’ve made and what I’ve learned from those mistakes. Let’s start with the tools and a high level […]

Published or Updated: September 21, 2014

DR 106: 8 Black Belt Budgeting Tips

Budgeting

It’s not an overstatement to say that budgeting is the foundation upon which all lasting wealth is built. That’s true whether you make $40,000 a year as a teacher or $40 million a year as an entertainer. If your cash flow is well managed, you can build wealth on any income. If it’s not well […]

Published or Updated: September 13, 2014

DR 105: The 5-Year Roth IRA Rule for Contributions (breaking the rule is costly)

5 year Roth IRA Rule

The Roth IRA was established by the Taxpayer Relief Act of 1997 and named after its chief legislative sponsor, Senator William Roth of Delaware. The Roth IRA enables individuals with earned income to contribute after-tax (nondeductible) money to the retirement account. If the rules are followed, the money grows tax free. Unlike a traditional IRA, […]

Published or Updated: September 9, 2014

DR 104: Rags to Riches and Back Again–Interview with Million Bucks by 30 Author Alan Corey

Optimized-Rags to Riches

Is it possible to build $1 million in net worth in 10 years starting from scratch? In today’s interview with Alan Corey, author of A Million Bucks By 30, we’ll learn exactly how one man did it. I learned about Alan and his book from a listener named Natalie, who I had the pleasure of interviewing […]

Published or Updated: September 6, 2014

DR 103: The Small Business 401k–Interview with CEO Chad Parks of The Online 401(k)

Optimized-OF GETTING AHEAD

If you’re a small business owner – whether you have employees or not – the thought of setting up a retirement plan can be overwhelming. 401ks and even SEP-IRAs are swimming in rules and regulations. What business owner really has enough hours in the day to deal with it? For that reason, I asked Chad […]

Published or Updated: September 5, 2014

DR 102: 4 Times Recharacterizing an IRA Conversion or Contribution Can Save Your Bacon (Literally)

IRA Recharacterization

One of the best retirement savings tools is often overlooked. The tool can save you thousands of dollars in taxes and sleepless nights if you made a mistake with your IRA. And yet according to a 2010 study by Fidelity less than one-third of investors are aware of this tool. I’m referring to what’s called […]

Published or Updated: September 3, 2014