Finance – Sergio Personal Finance

Personal Finance/Advise

This Personal Finance/Advise is very basic, because it is intended for High school students.

What is the difference between USA and other countries? USA gives you OPPORTUNITIES FOR FREE.

Why is there poverty? Multiple reasons. The way out of it: EDUCATION

In Latin America, Asia, Africa, Russia, certain countries in Europe not so much, the opportunities to get out of poverty are not there. If you were born poor, most likely you stay poor all your life.

Why there is so much inequality? Think Serfdom vs Land owners. No opportunities to get ahead for thousands of years.

Why Wealth Gap has Grown despite record-long economic growth

Christopher Rugaber article is very enlightening. Please read.

2020 race and Free College

This is incredibly important. The amount of money owed due to college education is staggering and needs to be addressed. Refinancing at lower interest rates should be made possible.

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CalHealthCares tuition payment

This is great news for Medical Students. Please read … and apply.

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Robert and Sally Investing History

This history appears in the book by Porter Stansberry "The American Jubilee". It shows the power of compounding interest, in this case over 40 years.It will surprise you. The stock market gives you about 8 to 10% earnings average over a long period of time, that's why it's important to start saving early if at all possible.
It is a book worth reading.

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529 college savings plan

This is very important. One needs to start saving early for the kids college.

See what Jane Bryant Quinn has to say.

401k retirement plan changes full article

There are different types of retirement plans. The most common are an Individual Retirement Account (IRA), a 401k which is usually provided by your employer, a Roth IRA (a variation of the IRA) and others. There are different advantages for each one.

The IRA and 401k are similar in that you contribute before taxes and you pay them when you withdraw the money starting at 70.5 years old (mandatory withdrawal). By then your tax bracket will most likely be lower, so you pay less taxes.

For the ROTH IRA, you fund it after you pay the taxes. There is no mandatory distribution at age 70.5 but you have to wait five years before you can use the money without a tax penalty. (not recommended to use the money until you retire).

With these changes made to the 401k plan, most of the disadvantages of the plan disappear and the money saved is made easier to be used before retirement, for certain specific circumstances.

Please read the full article as it did appear in the Wall Street Journal

Raise my taxes

This is very important. Some of the inequality we see today is due to a taxing system that favors very high earning people and corporations.

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25% of US population

This is really sad. A very large amount of population would have a difficult time paying an emergency $400 bill.

If you have a 401k plan, the government is working on making it easy to get money out of the plan, up to certain amount, without penalties, if one has an emergency such as having a baby, an adoption and perhaps others.

Please read 401k changes

Category: Finance