Index investing works – it’s just not a standalone approach. It’s a key component in a portfolio, but not a portfolio onto itself. Index investing is a passive investing technique that attempts to match the returns of a broad market index, like the S&P 500. Indexing has stood the test of time and meets several, but not all, of the core principles to successful long-term investing.

Understanding expense ratios is important if you have invested in a fund (or ever plan to). Whether we’re talking about Exchange Traded Funds (ETFs) or Mutual Funds, you can be sure of one thing: shareholders are charged an expense ratio to cover expenses of the fund. This charge is not explicitly paid by you, the shareholder, to the fund.

So, what exactly is recession proofing anyway? Recession proofing describes the practice of safeguarding your portfolio from the effects of an economic downturn. The path to implementing this practice can look different for every investor. For some, this may mean shifting to a more conservative asset allocation, while others may be forced to rethink their wealth management framework altogether.

A Donor Advised Fund (DAF) is a type of charitable giving vehicle. Here are some basics on how they operate: You receive a tax deduction in the year you make a contribution equal to the full value of the assets you contributed. Contributions can be made at any time during the life of the DAF. You can distribute donations on a flexible time table ( there are no minimum or maximum annual distribution requirements).

Think a QCD might be right for you? Here are some important things to know: QCDs can be made from a traditional IRA, inherited IRA, inherited Roth IRA, SEP IRA, or SIMPLE IRA, however you cannot be actively receiving any employer contributions to the account (SEP or SIMPLE). You must be at least 70 ½ years old at the time you plan to make the QCD. Your QCD can satisfy your RMD.

What is tax-loss harvesting? Tax-loss harvesting is the practice of selling a security that has experienced a loss and replacing it with a very similar security. The idea is that you will be able to apply these losses against any realized gains or income on your tax return to help lower your tax bill while maintaining an optimal asset allocation. Losses can be indefinitely carried forward and applied to offset future realized gains until they are exhausted.

I know the question you’re probably asking yourself: Can’t I just take a smaller RMD? The answer is no. RMD is just like how it sounds–it is the minimum amount you need to take from your retirement account each year. Bluntly, it’s the IRS’s way of forcing you to take a certain amount of money from your tax-deferred retirement accounts so that they can get their taxes-owed.

The word “option” makes you feel good–it denotes flexibility, choice, and gives you a sense of control. However, those “options” may not be the cherry on top of your sundae, perfectly perched on a pillow of whipped cream. They may actually be the sticky hot fudge that melts your ice cream and turns your masterpiece into a soupy mess.