Read this to see how earnings per share and your tax return can relate.

You might have heard in the news that Disney’s EPS (earnings per share) beat estimates or is forecasted to earn over $1.10 per share next year. But why earnings? Why such a big emphasis on this?

News headlines every day draw audiences to tune in for these results. Millions of investors draw conclusions from this, but why?

What are the earnings? Many results will be money derived from labor, income from an investment, amount of money earned after all costs and expenses are paid.

Let’s simplify this with the following example: Continue reading

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What is wrong with a 401(k) Part-1

What is wrong with a 401(k)?

Long ago, the financial instrument we know today as a 401(k) did not exist.

Companies opted out by offering pensions of managed large pools. These pensions demanded good money managers. The incentive was simple; you had a fiduciary duty to the clients. If the managers of the funds did not perform, they would lose the multi-million dollar account of those companies.

Then came the birth of the 401(k)

Continue reading