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  • The median age in the U.S. is 36.8
  • The median income in the U.S. is $51,939
  • The average 401k match is $1 for $1 up to 6%

A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:
With just average stock market returns of 10% would have $1,114,479.31 by retirement.

Join 33,000+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market.

A Guide to Investing for Beginners— Your Path to Financial Freedom

“Investing is the process of laying out money now to receive more money in the future.”

Most people think they need thousands or millions of dollars to start investing. The good news is you don’t. We will discuss how to start investing if you are new to the whole idea.

There are some simple steps to follow to get started as early as today. And the sooner you start, the sooner you arrive at your destination.

In today’s post, we will learn:

  • Why Invest in the Market
  • Things to Consider Before Starting
  • 6 Perfect Investments for Beginners

Okay, let’s dive in and learn more about investing for beginners.

Why Invest in the Stock Market?

For most of us, retirement is a long way off, which we think we will do later. But today is the best time to start, and most people put it off, either because they fear what they don’t know or feel they don’t have enough money to start.

The stock market is one of the greatest places to create wealth. Of course, starting or owning your own business is a great way too, but that is not for everyone, where the stock market is open for all.

Starting to invest in the stock market seems scary and full of noise, confusion, and the potential to lose lots of money.

But investing is like anything else; once you learn the basics and understand the reasons behind the behavior, it all makes a lot more sense.

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What is a Breakeven Analysis?

A Breakeven Analysis is one of the most common ways to assess a business decision. In its most simplistic form, a breakeven analysis looks at how many units of a product or service must be sold in order for total revenues to equal the cost of production.

A breakeven analysis is commonly used in financial analysis and corporate budgeting to help make project and investment decisions. However, breakeven analysis can also be used for home economics purposes to help consumers make smart decisions regarding purchases.

The breakeven level of sales can be solved for by taking into account the contribution margin each unit of sales contributes towards covering fixed costs. This article will teach readers how to conduct a breakeven analysis with an example both from a business and consumer perspective.

Formula for Breakeven Analysis?

A breakeven analysis can be calculated formulaically by dividing the total fixed costs by the contribution margin per unit sold. The breakeven point is represented by the quantity of units needed to be sold. The contribution margin is equal to the sales price less all the variable costs. For each unit sold, the net contribution margin will go towards covering fixed costs. The formula to calculate the breakeven level can be seen below.

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Chris Hutchins of All the Hacks Discusses HSAs, ETF Investing, and More

Welcome to the Investing for Beginners podcast. In today’s show, we discuss:

  • Some of the great hacks out there for points, becoming indistractible, and more with Chris Hutchins of All the Hacks
  • The pros and cons of using an HSA
  • The ins and outs of ETF investing and how he looks at setting up his portfolio

Today’s show was sponsored by:



For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com


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I love this podcast because it crushes your dreams and getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern with a step-by-step premium investing guide for beginners. Your path to financial freedom starts now.

[DAVE] All right, folks. Welcome to Investing for Beginners podcast. Today, We have a very special guest with us. We have Chris Hutchins, who is an avid life, hacker, financial optimizer, and host of the talk reg podcast, all the hacks. He also works for both front, and he’s here to join. And talk to us about a wide range of different topics and different things.

That’ll be kind of fun. He’s a really interesting guy. And I think you guys will get a lot of great stuff out of this conversation. So, Chris, could you say hi and I guess you tell us a little bit about yourself, and then we’ll kind of go from there.

[CHRIS] Yeah. Hey, thanks for having me. Gosh, I have a different background. I always say like Jack of all trades master of none; I’ve, I’ve started a few companies, sold a few companies, worked as a venture capitalist, worked as an investment banker, you know, dabbled in all kinds of side hustles and projects, and ended up today hosting a podcast to talk about, you know, optimizing and upgrading your life without spending too much money.

I run a new product strategy on Wealthfront, where I’m trying to come up with new and better products to help people build their wealth.

[DAVE] Yeah, that’s awesome. So I would have to say that you’re a slacker because you’ve really underachieved because you’re so old and you’ve done all these things in a very short amount of time.

So I’m curious about the optimizer thing. So you’ve mentioned that several times in our conversations, you talk about it on your podcast, and it’s on your website. What does that mean to you?

[CHRIS] Yeah. I mean, it’s really just, I thrive on kind of efficiency and outcomes. It feels like, you know, everything you do in life could be this puzzle that would get you a better outcome if you just kind of put the pieces in the right place.

So I always give these crazy examples of I’m the person that’s driving down the—looking like seven stoplights ahead. And if I see that it’s about to turn red down the street, I’m like, oh, I know that if I, if I turned right now, I’ll get home faster. And I can’t even hold that back when I’m in a car. So if I’m taking a Lyft or an Uber, I’m like, oh, you can, can you just turn right now?

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Don’t think you can’t save money quickly with a low income?

Have you been told that with a low income you can’t save money quickly?  Have you been living check to check for the last ten years and you are finally tired of it?  Are you stressed that you will never find a job where you feel like you’ll make enough money?

If you answered yes to any (or all) of these questions, I have some good news for you.  Just because you work a blue-collar job making an average hourly wage, doesn’t mean you can’t save money.  In fact, I have several ideas to show you how to save money fast on a low income. 

Just like anything in life, it certainly won’t be an easy thing to do, but if you truly want to adjust your lifestyle and buckle down the hatches, there are ways to instantly build your worth and minimize debt.

I have four different topics to touch on, each one helping you better understand how to save money quickly, even with a low income.

  • Minimize Debt
  • Evaluate Necessities
  • Reduce Costs
  • Tips on Execution

Minimize Debt:

Truthfully, if you have a lower income, you should already be mindful of your debt.  There is a good chance the necessities of life are costing you enough, and extra monthly payments are just something you can’t afford, especially if you are wanting to build up your savings.

There are all kinds of debt, some are good, a lot is bad, but all debt is something that everyone is trying to reduce or pay off.

Bad Personal Debt:

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Two Ways to Use the Retention Ratio Formula to Project Future Growth

Most companies find growth by retaining earnings (capital) in the business and reinvesting it for sustainable future returns. Using the retention ratio formula can help you project a company’s future growth potential by looking at how much the company can retain in the business.

There are two main types of retention ratios which are used to project future growth. Their formulas are:

  1. Retention Ratio = (1- Dividend/EPS)
  2. Retention Ratio = (Capex – Depreciation + Working Capital Investments) / NOPAT

Both formulas have similarities in that they compare an efficiency, or return on capital formula, with how much capital a company retains in the business.

The definitions of profitability and capital retained can differ depending on if you’re focusing on Profits and Losses or cash flows; these are the two primary differences of the two types of retention ratios.

The EPS retention ratio relies only on the Income Statement, while the NOPAT retention ratio also ties in a company’s Cash Flow Statement—which is a more accurate description of a company’s true capital needs for reinvestment.

Both types of retention ratios can be used to project future growth with this formula:

Future growth projection=

= Return on Capital * Retention Rate
= ROE * Retention Ratio with EPS


= Return on Capital * Retention Rate
= ROIC * Retention Ratio with NOPAT

Basically, a company’s future growth will depend on how much they reinvest and what return they can earn on that reinvestment.

What makes this formula tricky to use in the real world is that returns on reinvestments are not locked over time. Return on capital is fluid and usually changes every year. Each reinvestment can have a different rate of return each year, and previous years’ return on reinvestments can also change over time.

That said, the retention ratio formula for projecting future growth can be a great shortcut tool for making a reasonable estimate about the future—at least for setting a base rate on your growth estimate so you’re somewhere in the ballpark.

Let’s do a few examples of using the retention rate on real companies today.

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What is a Company’s Optimal Capital Structure and What Influences It?

“The first question is, is when you have capital, is it better to keep it or return it to shareholders? It’s better to return it to shareholders when you cannot create more than a dollar of value with that capital. That’s test number one. And if you pass that threshold, that you think you can achieve more than a dollar of value for every dollar retained, then you simply look around for the thing that you feel the surest about, and that promises the greatest return weighted for that certainty.”

Measuring capital comes down to multiple metrics, ROIC (return on invested capital), ROE (return on equity), or ROCE (return on capital employed). And determining the company’s capital helps investors ascertain how efficiently and well management deploys that capital, which the metrics help us measure.

But what is the optimal capital structure? Each company’s structure will depend on multiple factors, and how they organize that structure will determine many of the CEO’s decisions to grow the company.

After all, capital management is job number one for the CEO, and part of our analysis is studying those decisions, along with the capital structure of each business.

In today’s post, we will learn:

  • What is Capital Structure
  • Understanding Optimal Capital Structure
  • How to Determine the Optimal Capital Structure
  • What Are Three Factors Influencing Optimal Capital Structure
  • Investor Takeaway

Okay, let’s dive in and learn more about optimal capital structure.

What is Capital Structure

In the most simple terms, capital structure is the specific arrangement of debt and equity used by a company to finance its operations, the overall operations, and potential growth.

Let’s explain equity and debt a little.

Equity capital or financing comes from ownership of shares in a company with claims on its future cash flows and profits. When investors buy shares in a company, say Microsoft, we are becoming part-owners, but we are also growing the company’s equity capital with our investment.

Debt capital comes from bond issuances or loans, which the company offers to raise capital. The bond offering extends debt to buyers in return for a coupon or dividend payment, plus the return of the original loan at a predetermined time.

The equity capital comes in the form of common stock, preferred stock, or retained earnings. While short-term debt, such as capital leases, is also a part of the company’s capital structure.

Target Balance Sheet, 10-Q 8-27-21

We can find both debt and equity on the company’s balance sheet. The company’s assets, purchased from either debt or equity, are also on the balance sheet. Those assets are the drivers of the company’s growth, whether inventory, accounts receivable, or intangible assets in a cloud SaaS company.

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IFB212: Investing in “Safer” Investments, Picking ETFs and Individual Stocks, and Bond ETFs

Welcome to the Investing for Beginners podcast. In today’s show, we discuss:

  • How to find investments that pay 3-5% returns or safer returns that lower the volatility
  • How to think about investing in ETFs and picking different stocks that might be in the ETF
  • How to think about investing in Dividend Aristocrats and others that are in the more mature lifecycle
  • An overview of the bond ETF market

Today’s show was sponsored by:

Jordan Harbinger Show

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com


Apple | Spotify | Google | Stitcher | Tunein


I love this podcast because it crushes your dreams and getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern with a step-by-step premium investing guide for beginners. Your path to financial freedom starts now.

[DAVE] All right, folks, welcome to Investing for Beginners. Tonight we have episode 212. And tonight, we’re going to answer some great listener questions we got recently. So without any further ado, I will go ahead and read the first question. And Andrew and I will do our usual give and take.

So, Good morning, guys. Great podcast; I have a question about how much to invest in the stock market. Well, the more I learn about the stock market, the more confident I become in it. However, I still have a majority of my savings in a money market account, 80% in savings account 20% in the stock market; I am slowly starting to divert more of a percentage to stocks and bonds. However, I want to put more of my savings into working in the stock market. And our investment vehicle has a yield of at least 3%. As currently, most of my savings are sitting in a savings account that is losing value in real terms. I am not just confident enough to dump most of my savings in the stock market. If you were to advise someone how to invest 80% of your savings, where would you recommend putting that cash to work in the market and or bond market if you are willing to incur a low amount of risk with a yield between three to 5%? Thanks in advance, Jay.

So Andrew, what are your thoughts on Jay’s great question.

[ANDREW] A lot to unpack. So I guess first off, I’ll start by saying I invest 100% of my savings into stocks. And that’s because I have a very long time horizon. I think anybody with a time horizon longer than 20 years or so should. I don’t see why anybody shouldn’t do that. That’s what I do. And it’s simply because over the long term, the stocks do well, and they always recover. And because businesses do well, that said, so he’s talking about investing 80% and wanting a yield of 3%.

Now, that’s where the answer can become tricky because interest rates change. And so if we were to rewind, let’s say like 1015 years ago, you could probably get 3%, by putting money into a savings account, you know, rewind another 25 years, maybe you could have gotten four or 5%, you fast forward to today, you’re lucky to get 1%. And you probably have to switch to a no-name broker to do that. So, you know, he mentions how he’s losing money in real terms.

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The Keys to a Well-Diversified Portfolio

So, let’s say you have taken the first big step in your investing career, you have either started up your first trading account, or invested in your first rental property, or maybe you have even gotten into cryptocurrency. 

That is fantastic, the hardest part of starting is getting everything set up and getting money into your accounts.  The second hardest part is figuring out your strategy moving forward.  Keep reading and I’ll share my ideas on what is in a well-diversified portfolio, which should be everyone’s end goal.

At this point in time, cash is truly the least valuable asset you can have in your portfolio.  You certainly need to have access to some quick cash in case you run into a situation.  Say your furnace goes out in your home, your transmission goes out in your car, or work is slow, and they asked you to not come in for a week.  However, the days of sitting on $30,000 grand in a savings account are over. 

There are two main points I’m trying to make here.  Number one, if you have any type of “extra” cash laying around, find something to invest it in.  Extra cash means it’s just money that would maybe be going toward your nest egg. 

Number two, once you get established and are consistently setting aside money to invest, make sure you start thinking about how you want to spend that money.  It’s easy to buy every stock you see on the news, but hitting that easy button isn’t always the answer.

As with anything that has a risk, there are certain things you can do to enhance your chances of success and things you can do to ultimately lead you to failure.  Making sure you have a well-diversified portfolio, even when just beginning your investing career, is extremely beneficial.   Below are a few tricks of what a well-diversified portfolio looks like.  Remember, it doesn’t matter if you have $1,000 invested or $100,000, diversification is important to everyone.

How Diversification Works

Think about it this way, if you went to the grocery store and knew you weren’t going back for one month, would you buy all the same food?  Heck no, you may have a favorite that you buy a larger quantity of, but you are going to buy some different things, so you don’t get bored with the same food day in and day out.

The same is true with investing, you want to try some different things to limit your risk.  Let’s say you have $1,000 you want to start investing with, would I recommend investing it all into bitcoin right off the bat?  Not at all, that is putting all your eggs in one basket, and a risky basket at that.

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Economics 101: Macro vs. Micro Economics

Understanding the basic concepts of economics is critical to making smart investment decisions both at the stock-picking level and also at the portfolio asset allocation level. There are two major fields of economics; microeconomics and macroeconomics, and the laws of supply and demand play a factor in both which we will discuss as well.

Microeconomics has to do with the nitty-gritty of investment decisions at the business level and is very relevant in financial analysis, management accounting and operations. This makes microeconomics critical to understanding individual businesses and making smart stock investment decisions.

Macroeconomics moves beyond individual businesses to look at factors affecting industries and sectors in general. Overall asset levels and portfolio allocation across sectors and asset classes to be invested in (stocks vs. bonds) could be considered choices wrapped up in macroeconomic factors.

Microeconomics Importance to Investors

Microeconomics is of importance to investors when looking at topics such as the profitability of individual companies, where a business’s operations sit on the supply curve, and how the pace of adoption for a product alters the demand curve. Both of these factors drive the ultimate profitability of a company.

For consumers, microeconomics is important as it can explain the pricing factors consumers are seeing for various goods/services in the market and how they might expect them to change going forwards. Understanding microeconomics can help consumers save money and retire earlier.

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Asset Management Stocks: Business Overview and Changing Trends

Trillions of dollars move around in markets, and many of these flow through large asset management companies. To understand these stocks, and invest in them, requires understanding the basics of the industry and how asset management has undergone major changes lately.

One of the most obvious developments has been the move from active to passive strategies. Investors are increasingly adopting lower cost passive investment products like ETFs.

This shift to passive asset management has created pressure for some of the top publicly traded asset management companies today.

These more traditional asset managers include large companies like:

  • $BLK – BlackRock
  • $TROW – T. Rowe Price Group
  • $BEN – Franklin Resources
  • $IVZ – Invesco Ltd

Though the winds seem to be permanently shifting towards passive management, you can’t paint this industry with a broad brush and declare active asset management dead.

The truth of the matter is that there are an increasing variety of investment vehicles, and that asset management has so much more to do than just traditional actively managed mutual funds. The very diverse mix of clients extends past just your average Joe investors, and with their varying goals comes different needs and different solutions.

Better said—it’s not likely that asset management will ever go away.

And as some investors move away from the traditional stocks/ bonds portfolio and towards more exotic alternative options, there are a number of solutions from other top investment firms including:

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Feel like you’re always broke and need more money? Try these simple solutions

I don’t know about you, but one of the worst feelings in the world is thinking “I’m broke and need money”.  For some of us this may be an everyday feeling you have, trust me, I have been there, and most people at one point in their life have been there as well.

The big question that I would pose to someone with that feeling is, what are you going to do about it?  Are you the type of person that is going to be complacent with this feeling, or are you going to do something about it to try and fix the problem?

Don’t get me wrong, there is no simple fix to just creating money.  What did your parents use to tell you about money growing on trees?  But if you want to put the time into it, there is always a solution to any financial problem that you may face.

There are three different topics I want to touch on today that can solve the “I’m broke and need money” mentality.  These solutions may not work for everyone but are still a great first step for any type of financial struggle you may have.

  • Evaluate your Expenses
  • Evaluate your Income
  • What not to do
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