Core Investment Principles
Start Early
Historically, time in the market has mattered more than trying to time it. Compound growth is exponential.
Diversify
Spread risk across asset classes, sectors, and geographies.
Keep Costs Low
Historically, most active managers have trailed low-cost index funds after fees, and fees compound over time.
Stay the Course
Selling in a downturn locks in the loss; historically, markets have recovered over time.
Investment Account Types
| Account | Tax Treatment | Best For |
|---|---|---|
| 401(k) | Pre-tax in, taxed out | Employer match, high income |
| Roth IRA | After-tax in, tax-free out | Young investors, lower income now |
| Traditional IRA | Pre-tax in, taxed out | No 401(k), tax deduction now |
| Taxable Brokerage | No special tax treatment | Flexibility, no contribution limits |
| HSA | Triple tax-free | HDHP holders, medical expenses |
Compound Growth Calculator
From just $500/month - that's 7.3x your money
The earlier you start, the more time to grow
40 years of tax-free growth
Roth IRA 2026 max: $625/month ($7,500/year)
Recommended for age 25:
$1.51M
Tax-Free Growth
$240,000
Your Contributions
7.3x
Money Multiplier
Only 26% of US households have a Roth IRA.
Start early and let compound growth work for you - time is your greatest asset.
"Time in the market" beats "timing the market"Consistent investing outperforms trying to predict market highs and lows.
Investment Strategies
View allRoth IRA
Tax-free growth and withdrawals in retirement. The younger you start, the more powerful.
Employer 401(k) Match
An employer match adds employer money on top of your own contributions, up to a set limit.
High-Yield Savings Account
Earn 4-5% on emergency fund instead of 0.01% at big banks.
Backdoor Roth IRA
Legal workaround to contribute to Roth IRA when your income is too high.
Tax-Loss Harvesting
Sell investments at a loss to offset gains and reduce taxes by up to $3,000/year.
Mega Backdoor Roth
Contribute up to $72,000+/year to Roth using after-tax 401(k) contributions.
Direct Indexing
Own individual stocks instead of index funds to harvest $20K-50K+ in tax losses annually.
Qualified Opportunity Zone (QOZ)
Defer capital gains taxes and potentially pay zero tax on new gains after 10 years.
Getting Started
- An emergency fund (3-6 months) is commonly built before investing
- Capturing the full employer 401(k) match is a common first step
- Low-cost index funds (total market or target date) are common starting choices
- Automating contributions - paying yourself first - keeps investing consistent
- Reinvesting dividends compounds returns over time
Risk Management
- Asset allocation is often matched to your time horizon
- Stocks for growth (long-term), bonds for stability
- Rebalancing periodically keeps an allocation near its target
- Concentrating in a single holding, such as company stock, raises risk
- Knowing your risk tolerance before a downturn helps you avoid reacting to it
Educational purposes only. This content provides general investment education and does not constitute investment advice. Past performance does not guarantee future results. Consult a registered investment advisor for advice specific to your situation.