Investment types, asset allocation, tax-advantaged accounts, and contribution strategies.
Asset allocation is the mix of stocks, bonds, and cash in your portfolio
"Asset allocation" decides what you own; "asset location" decides which account holds each piece
Stocks represent ownership; bonds represent loans
Tax-advantaged accounts reduce or eliminate taxes on investment growth
2026 employee contribution limit is $24,500, plus catch-ups for 50+ and 60–63
529 plans are tax-advantaged accounts for education expenses
Aggressive = 80%+ stocks; Moderate = 50–70%; Conservative = 20–40%
A bond is a loan with a defined interest rate and maturity
2026 IRA limit is $7,500; 401(k) is $24,500
A glide path is a planned shift in allocation over time
HSAs are tax-deductible in, tax-free growth, tax-free out for medical expenses
Both are pooled investment vehicles holding many securities
Rebalancing returns your portfolio to its target allocation
REITs provide real-estate exposure without direct property ownership
Stocks represent partial ownership of a business
Traditional = tax deduction now, taxed on withdrawal