Imagine being able to predict the true value of a stock using a simple, elegant formula that investors have trusted for decades. That’s the power of the Gordon Growth Model, a valuation tool that helps you determine whether a dividend-paying stock is overpriced, underpriced, or just right. Whether you’re a beginner looking to start earning […]
Gordon Growth Model: Formula, Real Examples, and Calculator Read More »
When Warren Buffett evaluates dividend-paying stocks, he doesn’t just look at the dividend yield. He examines whether the company can actually afford to pay those dividends year after year. The metric that reveals this truth? The payout ratio is a simple yet powerful number that shows exactly how much of a company’s earnings flow back
Payout Ratio Explained: Meaning, Formula & Risks Read More »
The retention ratio (also called the plowback ratio) shows what percentage of a company’s net income is retained for reinvestment instead of being paid out as dividends. Investors use this metric to understand whether management is fueling growth or prioritizing shareholder payouts. This guide goes beyond the basics: you’ll learn the formula, interpretation, how it
Retention Ratio (Plowback Ratio): Definition, Formula & Investment Use Read More »
Dividend ETFs are a popular choice for investors who want consistent income without picking individual stocks. By holding a basket of dividend-paying companies, these funds can help smooth returns while providing cash flow that can be reinvested or used as income. If you’re new to dividend investing or building a long-term portfolio, understanding how these
Best Dividend ETF (2026 Edition): Top Picks, Strategies & How to Choose Read More »
← Investing Most investors overcomplicate wealth building. They chase hot stocks, pay high fees to active managers, and wonder why their returns lag the market. Vanguard Index Funds offer a different path—one grounded in mathematics, evidence, and a structure designed to keep more money in investor pockets. These funds don’t try to beat the market.
Vanguard Index Funds Explained: How They Work + Best Options for Investors Read More »
The 2026 max 401k contribution limit is $23,500 for employee deferrals, with an additional $7,500 catch-up contribution allowed for individuals age 50 and older. This brings the total potential contribution to $31,000 for eligible savers, while the combined employee-employer limit reaches $70,000 ($77,500 with catch-up contributions). Understanding these limits is critical for retirement planning. The
2026 Max 401(k) Contribution Limit: Updated IRS Rules & Catch-Up Limits Read More »
← Investing When legendary investor Jack Bogle founded Vanguard in 1975, he introduced a radical idea: most investors don’t need complexity to build wealth. They need simplicity, low costs, and discipline. The 3 Fund Portfolio emerged from this philosophy as one of the most elegant solutions to a complicated problem: how to invest for long-term
3 Fund Portfolio: The Simple Investing Strategy Anyone Can Use Read More »
Choosing between a Roth IRA and a 401(k) feels like standing at a financial crossroads with your entire retirement on the line. One path promises tax-free withdrawals decades from now. The other delivers immediate tax savings and free money from your employer today. The truth? This isn’t an either-or decision for most people; it’s a
Roth IRA vs 401(k): Which Retirement Account Is Better? Read More »
Retirement may feel like a distant goal when you’re 30 and earning $80,000 a year, but with the right strategy, financial independence is more achievable than most people think. The key lies in how much you save, how you invest, and how disciplined you are with your money choices over the next 25 years. In
Every January, the IRS announces new contribution limits that directly impact how much wealth Americans can build through tax-advantaged accounts. For 2025, these limits have increased across multiple retirement and savings vehicles, creating fresh opportunities to accelerate compound growth and reduce taxable income. Understanding the IRS Contribution Limits 2025 isn’t just about knowing the numbers.
IRS Contribution Limits 2025 — Your Complete Guide Read More »
