In my last post , we talked about how long-term capital gains stack on top of ordinary income when calculating your federal taxes. We also looked at the magical unicorn of tax brackets: the 0% long-term capital gains bracket. This “stacking” concept doesn’t just help reduce your taxes today—it can also shrink your tax bill years from now by intentionally using the 0% tax bracket. And that’s where capital gains harvesting  comes in. Yes, “harvesting,” as if we’re out in a fiel

When I first started buying and selling stocks, I never held any shares for longer than a few months. Then tax season rolled around, and I found myself staring blankly at a Schedule D tax form, thinking, “What the heck are capital gains , and why did my tax liability jump?” If you’re new to investing, there are two ways to make money through stocks: capital gains and dividends. In this post, we’ll break down what capital gains are, how they’re taxed, and why your holding per

Your 401(k) is one of your most powerful tools to escape the rat race and reach financial independence. But like any tool, using it correctly makes a big difference. Even smart savers sometimes miss out on thousands of dollars (and years of growth) because of a few small mistakes. Here are 10 common 401(k) mistakes  — and how to make sure you’re getting the most out of your plan. NOT UNDERSTANDING YOUR 401(k) TYPE When 401(k)s were first introduced, there was only one type. Y

Even if you hated math as a student, you’ll love learning the Rule of 72; it takes less than a minute to learn. The Rule of 72 explained simply is an easy, yet powerful mental shortcut to quickly estimate how long it takes for money (or debt) to double. For example, if someone asked you how long it would take for their mutual fund to double in value if it's compounding at 10%, you'll be able to tell them within seconds without the use of a calculator. The Rule of 72 is my fav