Income by Age: How Income Changes and Increases Over a Career

Ever wonder how income changes over the course of a career? Wondered how a new worker's salary will look after working a few years - or an entire career? Sure you have - we surely did, and we can tell you that articles like our net worth by age and income by age calculators (actually, the savings rate by age one too) get more than a fair share … [Read more...]

What Type of Investors Perform Best?

Yep, it's kind of a trick question. According to an internal study at Fidelity, and reported on second hand during Bloomberg Radio's Masters in Business podcast, a hilarious answer was given by guest James O’Shaughnessy: the best performing accounts held at Fidelity were the ones held by people who forgot they had an account. Think about … [Read more...]

Mortgage Rates versus Inflation Expectations

On Monday, we discussed how to quickly determine the rough inflation expectations in the general market, at least when it comes to CPI.  We also linked you a calculator we built which calculates inflation expectations over various timeframes. All that is well and good - but what can you actually do with that information? Therein lies the … [Read more...]

Market Predictions of Future Inflation, As of May 2015

One of the interesting things you can do with Treasury yield data is get a feel for what the markets expects to see in terms of inflation over the next thirty years or so.  By subtracting real (read: after inflation) yields on inflation protected securities from the yield on non inflation protected securities, you can see the premium suggested for … [Read more...]

Another Core Tenet of Personal Finance: Taking Free Money

A weird thread goes through my mind as this article comes together... and isn't quite finance related.  But I have a hammer, everything looks something something. When I was much younger, I was in Boston with a few of my friends - and we were looking to take a T back to South Station to get on a commuter train back home.  I forget where we were, … [Read more...]

A Core Tenet of Personal Finance: Shopping Around

The Consumer Financial Protection Bureau is a relatively new Independent Agency of the United States government which concentrates on... well... consumer financial protection.  Admittedly, their mandate is a bit up in the air right now, but they have made waves and headlines with a number of fines handed out to financial firms. They also, like … [Read more...]

Why Should You Track Your Savings Rate?

In our recent articles, we've been talking about the topic of savings rates.  Left unanswered, exactly, is why you should even bother with calculating an exact savings rate - isn't just a vague idea enough? As you can probably expect, our answer is a flat 'no'.  Although an exact to two decimal point savings rate is overkill for most purposes, … [Read more...]

Savings Rate Calculator

This page has a step by step savings rate calculator, which will help you easily compute your savings rate to compare to your own benchmarks, to future savings goals, and to the results of others.  By following the steps in the calculator, you'll have a normalized rate for both a strict savings rate - that is through your purchases and accumulation … [Read more...]

How to Calculate Your Savings Percentage

This article will detail how we calculate our savings rate so you can emulate our methods.  We will show you savings calculations using a strict method which only includes the accumulation of assets, as well as the more typical method which also includes paydowns of debt.  All our methods are after tax, also known as "net savings".  All our methods … [Read more...]

How Much Did You Save in 2014? (Part 2)

With my colleague PK writing about his 2014 savings rate, I thought that I would chime in as well. Using a loose definition of savings, where principal pay down of debt is included in the numerator, I have an after-tax savings rate of 53.42%. Without including principal paydown of debt, my strict savings rate would be 31.76%. A Note on … [Read more...]