Exit Load In Mutual Funds

If you have been investing in mutual funds for any amount of time, you most likely know about exit load. Some mutual funds, typically the equity kind will charge the investors some fees if they exit the fund (redeem investments), before a certain time period. This is done to discourage investors from prematurely exiting the fund. You see, investment in equity is a long journey. You cannot invest today and expect stellar returns in a year. Of course this does not deter some people from having crazy expectations. It takes a long time to build wealth. There will be lots … Continue reading “Exit Load In Mutual Funds”

Borrow From Future or Gift Yourself in Future?

Would you borrow a gift from the future or would you rather save up for a surprise gift in the future? That is how taking a loan vs saving works. If you take a loan, then you are borrowing money from your future. If you are saving, you will gift yourself a surprise in the future. Make your choice. In this post, I want to elaborate a bit more on step 2 of How to Retire Early in 5 Steps — Rid Yourself of Debt and Save Aggressively.   Debt is almost always bad because you are borrowing from your future, and … Continue reading “Borrow From Future or Gift Yourself in Future?”

Funding Children’s Education

After reading my earlier post on How to Retire Early in 5 Steps, some of my friends asked me if it is realistic to be able to achieve early retirement given the soaring cost of children’s education. So I thought I should elaborate a little bit, which is what this post is all about. I want to preface by saying the following I personally did not plan expenses for my child’s education since I do not believe in the current education system and we decided to home school our child I don’t believe expensive schools impart better knowledge than cheaper … Continue reading “Funding Children’s Education”

Math Behind Financial Planning (FV, PV and Annuity)

Saving early is one of the first steps you need to take when you are planning early retirement. I talked about it briefly in my earlier post, but wanted to elaborate a little bit and may be show a few formulas along the way to help you better understand how starting early and compounding make such a huge difference. This post will help you do your own financial planning if you are so inclined. I did not use a financial planner and always preferred to do it myself. So if you are like me, you might enjoy it. Let’s start … Continue reading “Math Behind Financial Planning (FV, PV and Annuity)”