The term “market” refers to a place or group of places where people can exchange certain goods or services for money. There is, of course, the basic “market” drawn from medieval exchanges wherein buyers and sellers would gather to exchange money for goods. Today, there are all sorts of markets, ranging from the supermarket that … Continue reading The Basics of Financial Markets
Category: Investing and Financial Planning
Fundamentals of Economics
Economics has been known as the dismal science ever since Thomas Carlyle coined the phrase to summarize T. R. Malthus’ sad predictions in the 19th century: that the fate of humanity’s economic life would be poverty, hardship and even starvation. In most of the developed world today, this prediction has not been borne out, but … Continue reading Fundamentals of Economics
Reading an Annual Report
Publicly traded companies are required by law to publish an annual report to their shareholders. Many companies publish quarterly reports as well. Though there is no government mandated format that an annual report should take or the exact information it should contain, custom has developed some standards, and some professional accounting organizations have required compliance … Continue reading Reading an Annual Report
Understanding Investment Management
Investment management firms manage the portfolios of individuals, partnerships, corporations, corporate and public retirement plans, non-profit entities and endowments. These portfolios can be invested in individual stocks and bonds, mutual funds, outright ownership of property or commodities, foreign exchange and the futures markets. Deciding the mix, scope and concentration of a portfolio under management is … Continue reading Understanding Investment Management
Understanding Corporate Finance
Corporate finance is the body of knowledge that dictates the decisions a company makes about its finances.
Quick Guide to Choosing a 401k Advisor
For most people, retirement planning is about as much fun as, say, poking a stick in their eye. It can also feel overwhelming if you’re not well versed in financial matters. That’s why it’s very important for you to feel not only that your retirement planner or 401(k) is knowledgeable and experienced, but that you feel … Continue reading Quick Guide to Choosing a 401k Advisor
Retirement Lifestyle: A Time for Pursuit of Passion
Once you retire, you might have fantasies of getting into all kinds of life activities which you’ve long postponed or you might fear an anticipated loss of income, life purpose or activity. Retirement is can be a time of renewal or reinvention. The choice of lifestyle belongs to you. If you’re not certain about how … Continue reading Retirement Lifestyle: A Time for Pursuit of Passion
How much Money do I need to Retire?
How much money do I need to retire is the question everybody wonders about. The right answer is down to lifestyle and how much you need to service that lifestyle. If you need $100,000 per year to live then the amount of money you need to retire is far greater than if you need $50,000 … Continue reading How much Money do I need to Retire?
Optimizing Capital Structure
Consider the situation of a newly married couple. They have some savings but also have substantial credit card outstanding. They are planning to buy an apartment. How should they go about it? Should they pay off a portion of credit card outstanding first and then go for a low interest home loan? If they decide … Continue reading Optimizing Capital Structure
Bonds: Calculating Yield
When talking about bonds (especially when buying them) you have to take into consideration the yield of the bond. Simply put, a bond’s yield shows the relationship of the investment and the income. For the sake of comparability yield is always shown as an annualized (yearly) percentage. Current YieldAlthough we may know the coupon rate … Continue reading Bonds: Calculating Yield