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PennyWhys

investing

Index funds, retirement accounts, the calculations that determine what to put where.

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investing

Why a 401k loan looks better than it actually is

401k loans pay interest to yourself, but opportunity cost and double taxation make them expensive compared to leaving the capital invested.

investing

Why index funds don't make you rich quickly

The math behind index funds shows that compounding time outweighs monthly contribution rates. A 23-year-old investing $500/month often finishes richer than a 43-year-old investing $1,500/month.

investing

Why an HSA beats a 401(k) for some people and how to know if you're one of them

The HSA offers triple tax advantages that a 401(k) cannot match for eligible health savings account holders.

investing

Roth IRA vs Traditional IRA: the actual decision rule

It's not 'are you young?' or 'do you want tax-free retirement?' The real question is whether your tax rate today is higher or lower than your tax rate in retirement — and there's a way to estimate that.