Money Explained

A Roth conversion is the process of moving money from a traditional IRA or 401k — where it has not yet been taxed — into … Read more

A credit score is a three-digit number — typically between 300 and 850 — that summarises the information in your credit report into a single … Read more

The 50/30/20 budget rule — allocate 50 percent of after-tax income to needs, 30 percent to wants, and 20 percent to savings and debt — … Read more

The stock market is a mechanism through which buyers and sellers exchange ownership stakes in public companies. It is simultaneously one of the most powerful … Read more

A high-yield savings account (HYSA) is a savings account that pays significantly more interest than a traditional bank savings account — typically 4 to 5 … Read more

An Individual Retirement Account (IRA) is a tax-advantaged investment account that allows anyone with earned income to save for retirement outside of an employer-sponsored plan. … Read more

Compound interest is the process by which interest earns interest — where the return on an investment is added to the principal, and the combined … Read more

A budget is a plan for how income will be allocated across expenses, savings, and debt payments over a defined period — typically a month. … Read more

Saving and investing are both essential components of financial health, and they serve different purposes in a financial plan. Confusing them — treating a savings … Read more

Your net worth is the single most useful financial metric available — more informative than income, more revealing than any individual account balance, and the … Read more