Speculating Oil vs. Hedging Oil
The commodities market in Chicago was established to allow farmers to get an ‘advance’ on their crops. They did so in order to ensure that they got a base level price in case anything catastrophic happened. But then the commodities market got expanded to include other things that weren’t quite related, such as oil. The […]
The Intersection of Efficient Markets and Behavioral Finance
I know I contradict myself when I say it, but I believe in both Efficient Markets and in the effects of Behavioral Finance. They both equally fascinate and convince me. At a very simplistic level, here’s a primer on each of them: Efficient Markets The Efficient Market Theory points to the data sources, and they are extensive, […]
Does Your Rewards Card Entice You To Spend More?
I admit it, I have a rewards card. It’s a Citicard that pays 1% cash back on purchases up to $300 a year. Does it entice me to spend more? Well, $300 is nice to get in the mail, but doesn’t make much difference on influencing what I buy. I do find this topic fascinating […]
Top 5 529 Savings Plans With Least Expenses
Most states offer a 529 Savings Plan. A 529 savings plan allow for saving for education, including college. It has tax advantages in that a person can contribute to the account and distributions won’t be taxed. They can have further tax benefits with some states. But they aren’t all created equal. Some have higher expense […]
Capital Gains: A Visual Representation
Being able to see a visual representation of types of capital gains helps to better understand the difference between the different capital gains rates. The Different Capital Gains Rates This table breaks down the 3 different capital gains tax rates and associated marital status and income levels.
How To Easily Fund Social Security
Social Security is funded by a 6.2% tax on income up to $168,000 (2024). Shortfall Social Security benefits are projected to be paid in full until 2037. If no changes are made to how Social Security is funded, benefits would be reduced to 76%. It’s incredibly likely that changes will be made> This is because […]