Displaying items by tag: ira
When it comes to compound interest, time could be your best friend... IF you start investing EARLY. The more time time you allow your investments to grow, the more they will compound and earn substantial returns. Many people forego investing for retirement while they are in training, with the rationale of: "I can start investing when I am an attending." I will show you why this thinking could potentially cost you millions of dollars in the future.
I will be creating a free educational series to teach YOU about the basics of investing your money and how to get started no matter if you have an initial investment of $1,000, $10,000, or more. The topics will be relevant to everybody who has just started working or is in the prime of their working lives. I may give specific examples that may be more relevant to Delayed Earners such as physicians.
What if you are above the income limits to contribute to a Roth IRA? Ugh, right? Mo' money, mo' problems. You can't even get a tax deduction if you contribute to a traditional IRA! Fret not, for all is not lost. You CAN get a Roth IRA, and it's called the Backdoor Roth IRA.
Dollar cost averaging (DCA) is a type of investment strategy where an investor will make constant dollar amount contributions to an investment at regular intervals. This theoretically reduces the risk and smooths out your purchase price over the course of time that you are contributing. The idea is that you are buying more shares of an investment when the price is low, and less shares when the price is high. I will show you that Lump Sum investing is superior to DCA investing using historical data of the S&P 500.