fbpx

Financial Freedom and Personal Finance Success by Moolanomy.com

Moolanomy Personal Finance Blog is home to the 12 Steps Guide to Financial Freedom and Personal Finance Success. We discuss financial concepts in an easy to understand language to help you improve your finances and better your life.

GET STARTED HERE

Invest in Peer-to-Peer Lending with Lending Club, Returns and Risks

Invest in Peer-to-Peer Lending with Lending Club, Returns and Risks 1

I have been lending in peer-to-peer lending networks like Lending Club and Prosper for about ten years now. Today, I want to share with you some of the things I have learned, and you can decide if this is the right investment for you. For those looking for quick answers: yes, peer-to-peer lending is a … Read moreInvest in Peer-to-Peer Lending with Lending Club, Returns and Risks

Dave Ramsey’s Baby Steps to Financial Peace Review

Dave Ramsey’s Baby Steps to Financial Peace Review 9

Dave Ramsey’s Baby Steps is a financial plan designed to help you get your finances in order, get out of debt, and achieve financial freedom. Dave Ramsey has taught these Baby Steps to millions via radio, The Total Money Makeover, Financial Peace University, and DaveRamsey.com. But how practical are these steps? I offer a review of each step in … Read moreDave Ramsey’s Baby Steps to Financial Peace Review

The 4% Safe Withdrawal Rate Retirement Drawdown Rule

The 4% Safe Withdrawal Rate Retirement Drawdown Rule 11

The 4% Safe Withdrawal Rate (SWR) was first introduced by William Bengen in 1994 and later supported by the Trinity Study in 1998. The rule basically states that when you hit retirement age, you can withdraw 4% of your total retirement savings initially. Each year, you increase the amount by the inflation rate. Assuming you … Read moreThe 4% Safe Withdrawal Rate Retirement Drawdown Rule

Different Types of Saving and Investment Vehicles

There are many different financial products out there that can help you achieve your saving and investing goals. Each type is better at meeting specific financial objectives, while others are better for different purposes. When you start investing, it is a good idea to become familiar with the more common ones. I am an experienced … Read moreDifferent Types of Saving and Investment Vehicles

Tax-Efficient Retirement Withdrawal Strategy

Tax-Efficient Retirement Withdrawal Strategy 14

When you stop working and have to start withdrawing money from your retirement accounts, you have to decide the best way to withdraw money from different accounts. Do you take money out of your tax-free accounts like Roth IRA and Roth 401(k) first? Or do you withdraw from your tax-deferred accounts like Traditional IRA and … Read moreTax-Efficient Retirement Withdrawal Strategy

Asset Location: Best Accounts for Different Investments

Asset Location: Best Accounts for Different Investments 17

Asset Location is a tax-efficient investing strategy to help you minimize taxes and grow your investments faster by holding investments in the best-suited investment accounts.  This strategy leverages the fact that investments in Roth IRA and 401(k) are tax-free, and investments in Traditional IRA and 401(k) are not taxed until the money is withdrawn. For … Read moreAsset Location: Best Accounts for Different Investments

Compound Interest Formula and Examples

Compound Interest Formula and Examples 21

One of the most powerful forces in finances is compound interest. Compound interest is interest that is paid on the principal and also on the interest that previously earned on your investment. This helps you grow your investment at an accelerated rate. On the other hand, compound interest can work against you — for instance, … Read moreCompound Interest Formula and Examples

Compound Annual Growth Rate (CAGR) Calculation and Examples

Compound Annual Growth Rate (CAGR) Calculation and Examples 25

You may have come across references such as the S&P 500 has grown 10% annually for the past 30 years or something to that effect. You may wonder what that means and where did they get that number. When someone mentions an annualized return, most likely he is referring to the Compound Annual Growth Rate or … Read moreCompound Annual Growth Rate (CAGR) Calculation and Examples