Don’t Forget the Tried-and-True Value of Compounding Interest

Don’t Forget the Tried-and-True Value of Compounding Interest Barnett Financial & Tax

If you forgot what compounding interest was, let’s refresh. Compounding interest is the process by which the interest earned on an investment is reinvested so that the initial investment grows over time. It may not seem like it, but compounding returns is a powerful tool that can significantly increase the value of an investment over…

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What You Need to Know About the State of the Crypto Industry

What You Need to Know About the State of the Crypto Industry Barnett Financial & Tax

2022 was a reckoning for the crypto industry. Cryptocurrencies deemed stable collapsed while proof of overly risky, shady, and even fraudulent practices emerged among some of the most established crypto companies. Instead of getting into the weeds of what the technology of crypto is or the genesis behind its creation, it’s more important to understand…

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2 Reasons the Generic 60/40 Portfolio Fails

2 Reasons the Generic 60/40 Portfolio Fails Barnett Financial & Tax

Starting out your investing journey, you may have been advised to follow the 60/40 allocation strategy. This strategy tells you to put 60% of your portfolio in equities and 40% in bonds or other fixed-income offerings. For decades, this strategy has been revered for its balance, offering high growth potential from stocks and a safety…

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What You Need to Know about Index Funds and Mutual Funds

What You Need to Know about Index Funds and Mutual Funds Barnett Financial & Tax

On their surfaces, index funds and mutual funds may seem interchangeable. Both offer diversification of assets and are commonly invested in a basket of stocks that aim to meet a certain investment goal. However, there are many key distinctions that separate an index fund from a mutual fund – distinctions that may be crucial to…

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The Value of Opening a Roth IRA at the End of the Year

The Value of Opening a Roth IRA at the End of the Year Barnett Financial & Tax

These days, retirement planning will likely involve Individual Retirement Accounts in one way or another. Whether you’re looking to roll over a 401(k), optimize your withdrawal timing, or take advantage of catch-up contributions, your IRA strategy may be one of the main components of your income strategy. So, let’s talk about the Roth IRA and…

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Can You Turn Investment Losses into Tax Gains?

Can You Turn Investment Losses into Tax Gains? Barnett Financial & Tax

When markets take a spill, especially when it comes to your retirement investments, it’s harder to find ways to meet your financial goals. If you were relying on IRA or 401(k) withdrawals to cover your expenses, doing so when markets are down would decrease the lifespan of your savings. And if you’re nearing retirement, market…

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Does the 4% Rule Really Work?

Does the 4% Rule Really Work Barnett Financial And Tax

During your saving years, your main goal is to accumulate wealth so that you have the resources to achieve a comfortable retirement. But that is just half the battle. How you use your savings to cover your living costs is the real key to living the retirement you dream of. You may have done some…

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Rediscovering the Value of Yields in Recessions

Rediscovering the Value of Yields in Recessions Barnett Financial & Tax

For decades, the name of the personal finances game has been an asset or equity growth. High-growth tech stocks grew to dominate the market, some of which have grown to be among the largest companies in the world. And if you owned stock in those companies while they made their meteoric rise, your overall wealth…

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5 Unique Risks for the Affluent Investor

5 Unique Risks for the Affluent Investor Barnett Financial & Tax

You may think that as a high-net-worth individual, or even a millionaire next door, you may have an easy road ahead in maintaining your wealth. But a greater amount of wealth to protect introduces unique challenges that are specific to the size of what they have to protect. Although many investing and wealth-preservation principles apply…

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The Pros and Cons of Owning a Second Home

The Pros and Cons of Owning a Second Home Barnett Financial & Tax

Second homes can be places for families to gather, lucrative investments, or a mix. Think about what your long-term goals are and how buying a second home would help you achieve them. Is it a place for your family to gather? A place for you to enjoy a particular natural landscape? Or is it a…

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