Life Kit: Money Curious about investing? Here's what to know
Dec 2, 2025
Mary Childs, a journalist and co-host of NPR's Planet Money, breaks down the intimidating world of investing. She clarifies the basics of employer retirement plans like 401(k)s, and the tax implications of traditional versus Roth IRAs. Mary emphasizes the benefits of index funds for most investors and stresses the importance of diversification to manage risk. She also explains the role of bonds in a portfolio and the significance of starting early to benefit from compounding returns. Plus, insights on ethical investing options make this a must-listen!
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From Confusion To Fluency
- Mary Childs recalls feeling mystified by finance when she started reporting on it.
- She learned the terminology over time and became fluent through practice and curiosity.
Grab Your Employer Match
- If your employer offers a match program, contribute enough to get the full match.
- Treat employer matching as free money and prioritize capturing it.
Tax Timing Matters
- The key difference between Roth and traditional accounts is timing of taxation.
- Roth pays tax now to avoid taxes on future gains, while traditional defers taxes until withdrawal.