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Definition of "financial independence": having passive cash flow to meet or exceed all needs and desires.

This site was created by your grandfather Bruce.

These are the best years of your lives. Spend wisely but don’t go nuts worrying about jobs, income, retirement. 

Explore. Live your passion. Be all that you can be. Foster close and lasting relationships.

Grandparents will have your back financially and for retirement.

Grandparents’ goal:

• fund retirement vehicles for each of the five grandchildren; funding has begun;
• monthly stipends for those in college;
• a million-dollar legacy for each grandchild.

Use the tabs at the top of the web page to go directly to what interests you.

The "home page" -- my summary of this entire project. Embedded in the "home page":

• actionable items
• advice
• lessons learned

 ACTIONABLE ITEMS

Open a full-service account at a discount broker. Now. See this post.

• minimize number of financial institutions with which you have to deal
• top three:
• discount broker: one-stop shopping.
• possibly a local bank for checking
• employer: 401(k); TSP;  

Discount brokers: not many to choose from -- Fidelity or Schwab

• Schwab: this is a no-brainer if there is a Schwab broker within a 60-minute drive
  
• checking account
  
• debit card
• money market funds
• Schwab ETFs
  
• SCHB
  
• SCHD
• SCHG
  
• 529s
• equity (individual stocks, not bonds)

Miscellaneous:

• cash-back credit card: Amazon Prime
  
• starts to establish credit record

Personal Finance Plan and Investing

Recommendations

• Pyramid
• emergency funds
• insurance (not a recommendation; an individual choice depending on circumstances)
• life insurance
  
• permanenet: may or may not need it. Depends; optional. Two types, see Investopedia: whole life vs universal life.
  
• whole: less flexible; more guarantees;
• universal: more flexible; less guarantees;
  
• term: only for "x" number of years -- not recommended.
  
• annuities -- not recommended.
• auto insurance
  
• deductibles -- maximum recommended.
  
• savings / checking accounts  
• savings: park money in high-interest but immediately available savings vehicles.
• checking accounts: interest-bearing
• two checking accounts if one has a debit card
• link debit card to one account; keep balance low
  
• investing
• rolling 30-year horizon
• buy-and-hold mentality, but
• re-evaluate new positions at 30 days
• re-evaluate tactical plan every six months 
• re-evaluate strategic plan every year
• best metric to follow: annual tax filings with the IRS
• Investing -- this is main purpose of this website
• goal: financial independence 
• metrics
• cash flow for spouse
• net worth for heirs
• then vs now and the transition
  
• then (your great-grandfather) vs now (your parents, you)
  
• transition (grandparents -- papa, grammy)
  
• Income
• active vs passive income
• active: work, salary, hourly wages
• passive: mailbox money, dividends, capital gains
  
• affects investment vehicles; affects taxes
  
• Vehicles for Retirement Savings
• only active income allowed for retirement accounts
  
• IRA --
• two types
  
• traditional
• Roth -- RECOMMENDED
  
• how managed
• managed by professionals (see below) -- RECOMMENDED
  
• mutual funds (see below) -- not recommended except in IRAs.
  
• load / no-load (see below)
• brokerage firms (see below)
• self-directed (see below)
• 401 (k) -- through your employer -- RECOMMENDED
• TSP -- secret sauce -- Federal government / military pay -- RECOMMENDED
• Pension -- more secret sauce -- including military pay
  
• Social security -- how it works
  
• Education savings
• 529s: link here.
  
• How businesses raise money 
• stocks (equity)
  
• bonds
  
• How to read "the business page."
• the big three exchanges / the three big equity markets / stock markets
  
• Dow
  
• NYSE (New York Stock Exchange) 
• three or less letters in ticker symbol
• tickers: three letters or less
  
• Dow: 30 is the Dow industrial
  
• Dow industrial vs Dow transport
  
• "everyone follows" Dow" (Dow industrial)
• "no one" follows Dow transport
  
• S&P 500: mostly NYSE but also a few NASDAQ-traded stocks
• perhaps most important to follow though most people follow "the Dow"
  
• old days, NYSE : S&P500 :: 10:1
  
• NASDAQ 100
  
• four or more letters in ticker symbol
• Others:
• Russell 2000
• jargon 
• VIX -- volatility index -- jargon -- important later on
  
• bull market, bear market, recession
  
• ticker: 3-letter vs 4- / 5-letter
• P/E (p/e) -- "sells for"
• dividend -- "pays"
• cash
• stock 
• stock split
  
• how to invest in stock market
• mutual funds -- a good place to start but lots of caveats.
• don't recommend any more; better options
• if one does invest in mutual funds, do it inside IRAs
  
• load: NO! Fee to invest and to redeem; do not invest in in load funds.
  
• no-load: if you do invest in mutual funds, only "no-load" funds; they have not expenses to for deposits or redemptions
  
• stock brokers
• full service -- high commission; lots of help but expensive
  
• discount (no commission but no guidance): Robinhood, Schwab, Fidelity
• but they do offer affordable personal finance advisors -- highly recommend;
  
• hybrid: Edward Jones -- moderate commission, but lots of guidance
  
• taxes 
• progressive: the more you earn, the more you pay
• even if you don't owe any money, you want to file
  
• you will learn how the government takes your money
• income
• active income
• passive income (investments)
• dividends
• capital gains
• credits: dollar-for-dollar reduction of taxes owed (really nice)
  
• deductions: reduces taxable income (nice)
• itemizing / not itemizing: big change over the decades
• generally no longer necessary 
• itemizing: not recommended 
• Resources
• Courses
• BYU personal finance planning
• education, nuts and bolts: needs to be updated
• messaging: live like a miser beginning at age 18
• great for developing one’s personal finance
• not as good at strategic investing with regard to advice
• Business media
  
• WSJ
• Barron's
• CNBC
  
• Spaceholder