A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for the loan, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of … Continue reading What are Bonds? Investing in Bonds
Stocks are shares in a company. When you invest in a company’s stock or buy its shares, you own part of a company. In general, if the company makes money over a long period of time, your stock may increase in value. Though, stocks are risky, and you may potentially loose all your money. Good potential … Continue reading What are Stocks?
The idea behind a mutual fund is fairly simple: Many investors pool their money in a fund managed by a professional money manager on behalf of these investors. The manager uses this pool of money to direct investments according to the fund’s objectives, such as long-term growth, high or stable current income, or stability of … Continue reading What is a Mutual Fund?
A mutual fund is a group of people pooling money together to buy a range of stocks and the money is administered by a manager. Depending on the type of fund, the gains received will likely be moderate but consistent. In addition, using mutual funds to diversify your portfolio will help you spread your risk. … Continue reading Understanding Mutual Funds
Are you new to investing? Then it is important that you know and understand the basic types of investments that are available to you. The following financial instruments are the investment options generally available to you in the investments marketplace. Savings Accounts Savings accounts are a safe haven to store your emergency funds. They provide easy … Continue reading Basic Types of Investments — Financial Instruments you should Know
It is very important to understand an income stream from a conceptual standpoint in the world of financial management. In short an income stream is a regular inflow of money. Another more technical name for this flow of money is an “annuity”. Though there are some technical differences in the income stream you receive from your employer versus … Continue reading Investing Basics: Income Streams and Annuities
An objective of ours is to help you learn how to find financial success. However, there is more to doing that than just crunching numbers and making investments. The main reasons most people do not achieve financial success is because they fail to apply fundamental lessons that apply on a much wider basis than finance alone. This section … Continue reading Saving Money and Accumulating Wealth: Fundamental Principles of Wealth and Resource Management
Just as Social Security is in the process of change, so too are most corporate benefit plans. There was a time when the average “company man” could depend on his or her employer to fund his retirement in an adequate and dependable basis. Unfortunately, this time has passed. The first step toward the change was with the … Continue reading Company Retirement Plans: 401K and Pension Plans
Liquidity is a concept that many investors fail to take into account or understand and as a result their financial plans fail to come through in such critical times as retirement or college funding for a dependent. However, the fact is liquidity or a lack thereof causes more financial problems than almost any other aspect of … Continue reading Investment Liquidity: What it is and Why it is Important
Most investors leave the more technical aspects of portfolio management to their financial consultants. However, this need not be the case. The average educated person can certainly gain a grasp of the topic sufficient enough to help make his or her own investment decisions. The key to learning is gaining the knowledge and then practice applying it to … Continue reading An Introduction to Portfolio Management
“Know thyself” was a phrase placed over the oracle of Delphi in ancient Greece. It is a phrase that is just as relevant and insightful when designing your investment strategy. The more you know then the better you will be able to design a strategy that fits your unique needs. We will be covering certain factors you must … Continue reading Knowing your Situation: A Personal Investment Strategy
What is dollar cost averaging? When an investor buys the same stock or mutual fund at regular intervals and with a fixed amount, he or she is said to be using the dollar cost averaging method. If the market price of the selected stock or mutual fund declines, the investor will buy a greater number … Continue reading Dollar Cost Averaging
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