A popular way to invest in the market today is through what’s called ETF’s, or Exchange Traded funds. They work much the same as regular stocks; they are portfolios of stocks, bonds, or other investments that trade on the stock exchange. All ETF’s are an index fund, which means that they track the performance of … Continue reading Investing in ETFs: Exchange Traded Funds
The Advantages: Diversification: A single mutual fund can hold securities from hundreds or even thousands of issuers. This diversification considerably reduces the risk of a serious monetary loss due to problems in a particular company or industry. Affordability: You can begin buying units or shares with a relatively small amount of money (e.g., $500 for … Continue reading Advantages and Disadvantages of Investing in Mutual Funds
If you’d like to enter the stock market but are not prepared to purchase a large quantity of stocks or don’t have a large amount of money to invest, then you might find buying stocks through a dividend re-investment plan (DRIP) is the best avenue for you. Here’s how it works You buy one share … Continue reading Buying Stocks: Doing your Own Investing with DRIPS
The toughest part of investing in stocks for most people is stock selection. There are thousands of listed companies in the marketplace that you may invest in by doing your own work and research. An easier way to invest in a diversified portfolio of stocks is to invest in index funds. Here is some information on … Continue reading The Benefits of Index Funds
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