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Eric Reed

Retirement and Investing Expert

Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.

Posts by Eric Reed:

by Eric Reed Sep 28, 2022

For most household investors, your portfolio is generally a mix of three main asset classes: stocks, bonds and banking products. By banking products, we mean anything ranging from a savings account to a certificate of deposit that you hold with your depository institution. The balance that investors strike with these products is between growth, stability and liquidity. Simply put: Stocks offer growth but at the expense of volatility, especially over the short term. Bonds offer less growth, but more security and less volatility. And banks offer high security with potentially high liquidity depending on your product, but almost no growth. With this balance, the first question for most investors is: How many stocks should they own? Let’s break down how heavily invested you should be in stocks when compared with bonds and other security-oriented assets. If you’re unsure how many stocks to invest in, a financial advisor can help you balance your portfolio.  Read more

by Eric Reed Sep 27, 2022

The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At the same time, the median sale price for houses continues to climb, most recently reaching $440,300. While the market’s rate of growth has slowed down, houses continue to get more expensive. So with asking prices still on the rise and loans nearly three times more expensive than they used to be, it’s no wonder many are advising against buying a house at this junction. It makes a surface level sense. Rising interest rates will make monthly mortgage payments considerably more expensive, so buyers should wait until those prices come down. Except financial and housing experts say it isn’t that obvious. In fact despite or even because of rising mortgage rates, now might actually be an excellent time to buy a home. If, and this is a very big if, you intend to stay… Read more

by Eric Reed Sep 22, 2022

When you have seven figures to invest, your goals and outcomes can change. For some people, they want to continue growing their wealth. They look for the best opportunities and target growth as a long-term goal. Other people, however, no longer need that growth. They spent years building their nest egg and, now that they’ve gotten there, those investors will shift their priorities towards protection and stability. Depending on your strategy, here’s how much interest you can earn with $2.5 million per year. A financial advisor could help you figure out if income investing is a good fit for your financial needs and goals. Read more

by Eric Reed Sep 28, 2022

Interest is one of the most popular forms of investment return. Although it tends to generate lower returns than capital gains, interest payments are both income-generating and tend to be a safe… Read more

by Eric Reed Sep 22, 2022

Annuities are a form of hybrid financial product. Part investment and part contract, they’re primarily sold by insurance companies as a way to save for retirement. While in recent years they have… Read more

by Eric Reed Sep 22, 2022

SoFi and Chime are two popular financial technology (fintech) companies. Both offer online banks, with depository accounts and some lending products, and neither has a brick and mortar presence. This… Read more

by Eric Reed Sep 20, 2022

A trust is a legal entity that holds money and assets for future distribution or management. For example, you might create a trust for your children’s college education, putting money into it which… Read more

by Eric Reed Sep 16, 2022

Money market accounts are hybrid financial products that offer some of the advantages of a checking and a savings account. Specifically, money market accounts pay you an interest rate based on the… Read more

by Eric Reed Sep 13, 2022

Depending on where they live, student borrowers may soon face an unexpected tax burden. In August, the Biden Administration made news by announcing that it would forgive up to $10,000 in student debt… Read more

by Eric Reed Sep 13, 2022

With Fidelity and Vanguard, investors can access traditional, full-service investment platforms that allow you to individually manage your own account. Robinhood, by comparison, offers a very… Read more

by Eric Reed Sep 23, 2022

Interactive Brokers and Schwab offer similar products aimed at two very different segments of the market. With Interactive Brokers you will get a full-featured trading platform designed for… Read more

by Eric Reed Sep 13, 2022

Fidelity and M1 Finance are two very different services. With Fidelity, investors get a traditional, full-service trading platform. This is an online brokerage that allows you to execute your own… Read more

by Eric Reed Sep 07, 2022

Fidelity and Wealthfront offer significantly different approaches to investing. With Fidelity, users get a traditional online trading platform that allows them to execute their own trades and access… Read more

by Eric Reed Sep 07, 2022

Interest checking accounts, otherwise known as interest-bearing checking accounts, are checking accounts that pay an interest rate on the money held on deposit. There are key similarities and key… Read more

by Eric Reed Sep 07, 2022

Some financial assets, like bank accounts and retirement portfolios, are designed to pass from one person to another. This designated recipient is known as a “beneficiary,” meaning that you have… Read more

by Eric Reed Sep 01, 2022

The House of Representatives and Senate are working along similar lines to reform laws governing retirement plans like 401(k)s and traditional IRAs. Initiatives in both bodies raise the age cap for… Read more

by Eric Reed Aug 30, 2022

Online banks, which offer online checking and savings accounts, have become increasingly popular among many consumers. As their name suggests, these are bank accounts that you access and operate… Read more

by Eric Reed Aug 30, 2022

Commercial banks and investment banks have similar names, but the overlap largely ends there. A commercial bank is a depository and lending institution that mainly works with business clients.… Read more

by Eric Reed Aug 30, 2022

Investing doesn’t happen in a vacuum. Every company depends on the law, government and infrastructure of the society around it. Every financial asset depends on market-making and regulation. How the… Read more

by Eric Reed Aug 30, 2022

Annuities and perpetuities are insurance products that make payments on a fixed schedule. An annuity makes these payments over a fixed period of time and then ends. A perpetuity makes these payments… Read more

by Eric Reed Aug 23, 2022

Most tax-advantaged retirement accounts are defined by ERISA, the “Employee Retirement Income Security Act.” This statute outlines how programs like 401(k)s work, including the laws around how those… Read more

by Eric Reed Aug 23, 2022

Insurance is a complicated topic, but it’s one that everyone needs to understand to properly protect themselves. There are a lot of types of insurance: car insurance, life insurance and homeowners… Read more

by Eric Reed Aug 23, 2022

When you open a 401(k) retirement plan, it typically comes with a series of advisors who help your business manage that account. Specifically there are three main types of 401(k) advisors, or … Read more

by Eric Reed Aug 17, 2022

The recently passed Inflation Reduction Act contains five new healthcare benefits for retirees. Because Congressional Democrats in the Senate passed the Inflation Reduction Act through the… Read more

by Eric Reed Aug 17, 2022

When it comes to pets and estates, there are two main rules to understand. First – and sadly for the eccentric among us – you cannot leave money to your pet. The law says that animals are property,… Read more