Rule #1 Finance Blog
With Investor Phil Town
If you’re reading this post right now, there’s a good chance you’re viewing investing through a narrow lens.
You might picture the chaos of Wall Street, brokers trading stocks, numbers increasing and decreasing in the blink of an eye, and letter abbreviations that feel impossible to decode as someone who is unfamiliar with this world.
Ever dream about how to retire early?
It sounds amazing to be able to spend more time having the freedom to enjoy the things that matter most to you—whether that’s spending more time with family and friends or having the chance to discover a new passion project.
According to the United States Social Security Administration, the average retirement age is 67 years old, and this estimate applies to individuals born during or after the year 1960.
However, times are changing.
Having a solid understanding of the stock market can often feel out of reach. Sometimes it follows a predictable pattern and seems to make sense, while other times it’s volatile for no apparent reason.
Both are true!
Over the long term, the stock market will usually follow regular patterns, and in the short term, there’s more market volatility.
Inflation has been central to many conversations over the course of the last few years.
In fact, the U.S. Bureau of Labor Statistics noted the Consumer Price Index rose 6.8% between November 2020 and November 2021, making this new rise the largest increase since June 1982.
With the way things have been going (rising inflation, uncertainty around interest rates, an ongoing global pandemic, etc.), the stock market has been on a crazy rise— and we may have an interesting 2022.
Or maybe, you’re just starting out and wondering what to invest in as a beginner and what to avoid.
If you struggle with credit card debt or have a close family member or friend who does, you know they didn’t get into debt overnight.
Credit card debt is often accumulated with small purchases here and there that go unpaid over the course of months. Just as it didn’t accrue at once, it usually can’t be paid off at once either.
Let’s talk about inflation.
If you’ve recently heard this word come up in conversation a lot, it’s no surprise.
Over the course of the last few years, the U.S. has experienced a rapid rise in inflation, which has left many of us questioning important investment decisions.
One of the biggest obstacles holding people back from investing is that they think it is too complicated or too risky, but there are simple and smart investment strategies everyone can learn.
If you’ve ever bought and sold a rental property, a stock, or any investment, you were likely charged capital gains tax, whether you know it or not.
Capital gains tax gets a pretty bad rap, and rightfully so. This tax can take a huge cut of your profits from investments.
I’ll show you how it works, why it can be disadvantageous for investors, and how to avoid capital gains tax to a certain extent. That’s right, there are strategies you can follow that can greatly reduce the taxes you pay on your profits so you can keep more of your money.
When you invest the Rule #1 way, you can easily avoid capital gains tax. Here’s how.