Personal Finance | AFM

Maximizing the Marathon: Best Index Funds for a Roth IRA for Beginners in Their 20s

Starting a Roth IRA in your 20s is one of the most powerful financial decisions you can make, thanks to the decades of tax-free growth it offers. For beginners, the best investment strategy is simple, low-cost, and diversified—qualities perfectly embodied by index funds. Choosing the right index funds allows you to capture the market’s long-term returns without the stress of stock picking.

For young investors, the goal is maximum growth with minimal expense.

The Beginner’s Investment Philosophy: Growth & Simplicity

When you’re decades away from retirement, you have a high risk tolerance and the advantage of time to recover from market downturns. This means your portfolio should be heavily weighted towards stocks (equities) rather than bonds (a common allocation for those in their 20s is $\text{90\%}$ or more in stocks).

1. Prioritize Low Expense Ratios (ERs)

The single most important factor is the cost. An expense ratio (ER)…

Personal Finance

Zero to Debt-Free: How to Pay Off Student Loans Fast with a Low Income

November 7, 2025December 12, 2025 - by Juana Baumgartner

The pressure of student loan debt can feel crushing, especially when coupled with a low income. It seems counterintuitive to pay off loans quickly when every dollar is budgeted for essentials. However, by strategically leveraging federal programs and adopting disciplined financial tactics, it is entirely possible to create an aggressive payoff plan. The key is to first reduce your minimum payments to free up cash, and then redirect every extra penny to accelerate the principal reduction.

Phase 1: Lower the Minimum, Maximize Flexibility

When your income is low, your first priority must be to reduce the required monthly payment to its absolute minimum. This frees up cash that you can then strategically re-allocate.

Enroll in an Income-Driven Repayment (IDR) Plan: For federal loans, an IDR plan is essential. Plans like SAVE (Saving on a Valuable Education) cap your monthly payment based on your income and family size—sometimes resulting in

Personal Finance

Step-by-Step Personal Finance Planning Guide for Beginners

May 16, 2024August 9, 2024 - by Juana Baumgartner

Personal finance management is an essential skill that everyone should learn in order to achieve financial stability and security. Whether you’re just starting out on your financial journey or looking to improve your money management skills, having a step-by-step guide can be incredibly helpful. Here, we present a comprehensive personal finance planning guide for beginners, covering key steps to help you gain control of your finances and build a strong foundation for the future.

Step 1: Establish Financial Goals

The first step in personal finance planning is to define your financial goals. Whether it’s saving for a big purchase, paying off debt, or building an emergency fund, having clear objectives will guide your financial decisions and keep you motivated.

Step 2: Create a Budget

Creating a budget is crucial for managing your expenses and ensuring that you live within your means. Start by tracking your income and expenses to understand …

Personal Finance

Personal Finance Planning Tips for Achieving Financial Independence

February 15, 2024August 9, 2024 - by Juana Baumgartner

Achieving financial independence is a major goal for many people. Financial independence means having enough wealth to cover your living expenses without needing to work for a living. With proper personal finance planning, you can create a roadmap to achieve financial independence and enjoy a comfortable lifestyle. In this article, we’ll share some tips that can help you achieve financial independence.

Develop a Budget

The first step towards achieving financial independence is to develop a budget. A budget helps you plan your spending and ensure that your expenses don’t exceed your income. The budget should include your income, living expenses, and savings goals. By tracking your spending, you can make informed decisions and identify areas where you can cut back to save more.

Invest in a Retirement Plan

Investing in a retirement plan, such as a 401(k) or an IRA, is a crucial aspect of personal finance planning for financial …

Personal Finance

How to Create a Personal Finance Plan for Retirement Savings

November 17, 2023August 8, 2024 - by Juana Baumgartner

As you near retirement age, it becomes increasingly important to have a solid financial plan in place to ensure your golden years are comfortable and worry-free. Creating a personal finance plan for retirement savings is crucial to achieving financial security and independence during your retirement years. Here are some steps to help you create a strong financial plan for retirement:

1. Determine Your Retirement Goals

Start by envisioning what you want your retirement to look like. Consider factors such as where you want to live, what activities you want to do, and any financial obligations you may have. Having clear retirement goals will guide your financial planning process.

2. Assess Your Current Financial Situation

Take stock of your current financial status by examining your income, expenses, assets, and debts. Knowing where you stand financially will help you set realistic goals and determine how much you need to save for retirement.…