The Santa Claus Rally refers to a historically observed stock market phenomenon where U.S. equity markets tend to perform well during the last five trading days of the year and the first two trading days of the new year. Historically, the average gain during this seven-day period is around 1.3%. As time has gone on, largely thanks to […]
The Santa Claus Rally Phenomenon And Its Origins Read More »
Ever since I started saving for retirement in 1999, I’ve been a proponent of tax-deferred retirement vehicles like the 401(k) and skeptical of tax-now vehicles like the Roth IRA. Working in banking, I was already being taxed out the wazoo and had no desire to pay even more. Frankly, I wasn’t even familiar with the
Mega Backdoor Roth IRA: Supercharging Your Retirement Savings Read More »
Health insurance is one of the most complex and aggravating topics for both consumers and providers in the US. Speak with anyone based outside the US and they all will comment about how much better things are abroad versus here. But as most of you would agree, having health insurance is a financial necessity in
Key Factors To Consider Before Changing Health Insurance Plans Read More »
If you want to optimize your life, it’s essential to understand the concept of Return on Effort (ROE). The higher your ROE, the more you get out of your efforts, making it an invaluable framework for decision-making. ROE can also help you better utilize your time by prioritizing tasks and opportunities that yield the greatest
Return On Effort (ROE) Is Your Key To Unlocking A Better Life Read More »
Being financially independent means having enough passive income to cover your essential or desired living expenses. A common guideline is to aim for a net worth equal to 25 times your annual expenses, often used as a baseline for achieving financial independence. However, this approach is overly simplistic because it depends on the composition and
A Net Worth Equal To 25X Expenses Is Not Enough To Retire Early Read More »
I had the pleasure of speaking with Bill Bengen, creator of the “4% Rule” for retirement planning. Bill has been a reader of Financial Samurai for many years and has always been courteous in the comments section when I write about safe withdrawal rates. So, I figured it was time we had a chat to
The 4% Rule: Clearing Up Misconceptions With Its Creator Bill Bengen Read More »
After reviewing my analysis on a conversation I had with a financial professional in 2013, I decided to take another close look at my finances. To my surprise, I uncovered a huge gap between my perceived risk tolerance and the reality of my portfolio. Since leaving work in 2012, I’ve generally seen myself as a
Uncover Your True Investment Risk Profile: It’s Not What You Think Read More »
One reason many people shy away from competition is that they dislike losing. With often only one winner, the sting of defeat can feel too humiliating. When people stop competing, they can become more fragile over time, to the point where even small setbacks can disrupt their well being. Ironically, the best path to victory
The Power Of Losing: How Setbacks Can Lead To Success Read More »
The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power of employer 401(k) contributions, especially as you advance in your career. As you
2025 401(k) Contribution Limits: Bigger Savings, Better Retirement Read More »
With Donald Trump set to become the 47th President of the United States, it’s natural to wonder what this new administration could mean for your finances. For most people under 30, a change in leadership might not significantly impact financial planning. In your 20s, you’re often not earning enough or rich enough for a president’s
Financial Planning Through Changing Presidencies: My Journey Read More »
