Category Archives: Financial Literacy

Best State for Business? Yes, California

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Companies domiciled in California also outperformed the S&P 500 during the past four years by a margin of 23 percent. Among the California industries making the state No. 1 in business are health care, returning 267 percent, consumer staples (302 percent), specialty pharma (235 percent), energy (30 percent) and biotech (333 percent).

Maybe high taxes and strong regulations don’t daunt business leaders if well spent and well aimed. Places that prepare for big 21st-century challenges such as urbanization, climate change and globalization are likely to be the most successful. Continue reading →

Passive Index Funds-Power of Compound Interest (fees)

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Assuming an annual market return of 7 percent, he says, a 30-year-old worker who made $30,000 a year and received a 3 percent annual raise could retire at age 70 with $927,000 in the pot by saving 10 percent of her wages every year in a passive index fund. (Such a nest egg, at the standard withdrawal rate of 4 percent, would generate an inflation-adjusted $37,000 a year more or less indefinitely.) If she put it in a typical actively managed fund, she would end up with only $561,000.

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