Investing and Retirement Guides

How to use this page

Start with the decision you need to make, verify the inputs you can control, and compare more than one scenario before acting.

Confirm current rates, fees, rules, contracts, and eligibility with the relevant institution or qualified professional.

Financial guides

• 401(k) Explained: How It Works and How to Use It

  A plain-English guide to how a 401(k) works, including contributions, employer match, Roth vs traditional 401(k), contribution limits, vesting, investments, withdrawals, and common mistakes.

• Asset Allocation by Age: How to Balance Risk and Growth

  A practical guide to asset allocation by age, including stocks, bonds, cash, risk tolerance, retirement timelines, rebalancing, and common investing mistakes.

• Barista FIRE: Combine Part-Time Income With an Investment Portfolio

  Test a Barista FIRE plan using dependable earned income, benefits, healthcare, taxes, job availability, and lower portfolio withdrawals.

• Where Money Compounds: Savings Accounts, CDs, Bonds, and Investments

  Compare places money can compound, including savings accounts, CDs, money market accounts, bonds, retirement accounts, and diversified investments.

• Capital Gains Tax: Basis, Holding Periods, and Sale Planning

  Understand capital gains tax through cost basis, holding periods, netting gains and losses, estimated payments, and practical sale planning.

• Coast FIRE: Know When Existing Investments May Be Enough for Later

  Calculate Coast FIRE using current investments, time, inflation-adjusted returns, retirement spending, and the risk of reducing contributions too early.

• The Complete Wealth Building Blueprint: Save, Invest, Protect, and Grow

  Use this wealth building blueprint to organize income, spending, debt, investing, emergency funds, retirement planning, taxes, insurance, and financial independence goals.

• Compound Interest Calculator Guide: Inputs, Scenarios, and Reality Checks

  Use a compound interest calculator correctly by setting principal, contributions, rate, time, frequency, fees, inflation, and scenario ranges.

• Compound Interest for Kids and Teens: A Hands-On Money Lesson

  Teach compound interest to kids and teens with a simple jar activity, savings examples, account safety, and age-appropriate investing lessons.

• Simple vs. Compound Interest: Formulas, Frequency, and Real Cost

  Compare simple and compound interest, see how daily, monthly, and annual frequency changes results, and identify the rate terms that matter.

• Dividend Investing: How It Works and What to Watch

  A practical dividend investing guide covering dividend yield, payout ratios, dividend growth, taxes, reinvestment, risks, and how to use dividends in a long-term portfolio.

• Dividend Taxes: Qualified Dividends, Ordinary Income, and Basis

  Learn how qualified and ordinary dividends are taxed, why reinvestment still matters for taxes, and how account type and basis affect the result.

• Dollar-Cost Averaging: How It Works and When to Use It

  A practical guide to dollar-cost averaging, including how it works, pros and cons, examples, lump-sum investing, automation, retirement accounts, and common mistakes.

• Fat FIRE: Plan for Higher Retirement Spending and More Margin

  Build a Fat FIRE plan for higher spending, taxes, travel, housing, healthcare, and legacy goals without relying on optimistic returns.

• Financial Independence Roadmap: From Baseline to Work Optional

  Follow a practical financial-independence roadmap covering cash flow, debt, protection, investing, target math, taxes, and annual reviews.

• FIRE Movement Guide: Compare the Main Paths to Financial Independence

  Compare Lean, Coast, Barista, traditional, and Fat FIRE using spending, savings rate, work plans, healthcare, and portfolio risk.

• HSA Investing Guide: How to Use a Health Savings Account for Wealth

  A practical guide to HSA investing, including who qualifies, HSA tax advantages, 2026 contribution limits, eligible expenses, investing strategy, recordkeeping, and common mistakes.

• Index Funds vs ETFs: Which Investment Is Better?

  A practical comparison of index funds vs ETFs, including costs, trading, taxes, diversification, pros and cons, and how to choose the right option for long-term investing.

• Inflation and Compound Growth: Calculate Real Purchasing Power

  Convert nominal compound growth into real purchasing power, test inflation scenarios, and plan contributions for goals whose costs rise over time.

• Lean FIRE: Build a Low-Spending Plan That Can Survive Real Life

  Calculate a Lean FIRE target with realistic housing, healthcare, repairs, taxes, and spending flexibility instead of an artificially low budget.

• Net Worth Growth Strategy: Build Assets, Reduce Debt, and Track Progress

  Create a net worth growth strategy using assets, liabilities, savings rate, debt payoff, investing, cash reserves, and monthly tracking.

• Retirement Planning Checklist: What to Do Before You Retire

  A practical retirement planning checklist covering savings, income, taxes, debt, healthcare, Social Security, emergency funds, and investment decisions before retirement.

• Retirement Tax Strategy: Account Types, Withdrawals, and Conversions

  Plan retirement taxes by coordinating taxable, tax-deferred, and Roth accounts, required distributions, Social Security, and conversion timing.

• Roth IRA vs Traditional IRA: Which Is Better?

  Compare Roth IRA vs Traditional IRA accounts, including taxes, income limits, withdrawals, contribution rules, and how to choose the best retirement account for your situation.

• Rule of 72: Estimate Doubling Time Without Mistaking It for a Forecast

  Use the Rule of 72 to estimate doubling time, understand when it is accurate, and avoid applying it to fees, debt, or volatile returns incorrectly.

• Safe Withdrawal Rate: Build a Flexible Retirement Income Plan

  Understand withdrawal-rate research, sequence risk, taxes, fees, retirement length, and flexible spending without treating 4% as a guarantee.

• Sequence of Returns Risk: Why Timing Matters in Retirement Withdrawals

  Understand sequence of returns risk, why early retirement losses hurt more, and how cash reserves, flexibility, and withdrawal planning can reduce damage.

• Start Investing Early: The Beginner's Compound-Growth Guide

  Learn why starting early can beat investing more later, how compound interest rewards time, and how to test your own numbers with the MyMoneyLocal Compound Interest Calculator.

• Tax Brackets Explained: Marginal Rate vs. Effective Rate

  Understand how progressive tax brackets work, why a raise does not tax all income at a higher rate, and how marginal and effective rates differ.

• Tax-Efficient Investing: Asset Location, Turnover, and After-Tax Return

  Improve after-tax investment results by coordinating account location, turnover, dividends, gains, losses, fees, and withdrawal needs.

• Tax-Loss Harvesting: Lots, Wash Sales, and Carryforwards

  Learn how tax-loss harvesting works, how to select tax lots, avoid wash-sale mistakes, choose replacements, and track capital-loss carryforwards.

• Year-End Tax Planning Checklist: Records, Payments, and Decisions

  Use a structured year-end tax checklist to reconcile records, project the return, review investments and retirement actions, and prepare payment cash.

• Time in the Market vs Timing the Market: What Actually Builds Wealth

  A practical guide to time in the market vs timing the market, including why staying invested matters, common market timing mistakes, examples, and a simple investing plan.

• What Is Compound Interest? Formula, Examples, and Common Mistakes

  Learn how compound interest works, use the formula, distinguish guaranteed interest from investment returns, and avoid common projection mistakes.