Starting a new business can be scary. Given the year we just had, starting a new business in 2021 can feel especially so. As we rebuild as a country following a global pandemic, many people are getting back to following their passions and embarking on small business creation and ownership. Whether you are opening a brick-and-mortar…
The traditional and Roth IRA are alike in many ways, but when it comes time to decide which is best for your retirement portfolio, it is important to evaluate the differences in their benefits.
First, let’s take a look at what they have in common.
Where They Are Similar
There has been much discussion in the news recently about new nominal highs in stock indexes like the Dow Jones Industrial Average and the S&P 500.
When markets hit new highs, is that an indication that it’s time for investors to cash out? History tells us that a market index being at an all-time high
generally does not provide actionable information for investors. For evidence, we can look at the S&P 500 Index for the better part of the last century. Exhibit 1
In 1958, economist Leonard Read published an essay titled “I, Pencil: My Family Tree as Told to Leonard E. Read.”
The essay, narrated from the point of view of a pencil, describes the “complex combination of miracles” necessary to create and bring to market the commonplace writing tool that has been used for generations. The
narrator argues that no single individual possesses enough ability or know-how to create a pencil on their own. Rather, the mundane pencil—and the ability to purchase it for a “trifling” sum—is the result of an extraordinary process driven by the knowledge of market participants and the power of market prices.
