- Choosing Between High Yield Savings and Investing
Choosing between investing your money and putting it in a high-yield savings account is a common decision when you’re looking to grow your wealth. High-yield savings accounts, which are typically offered by banks, are a secure place to park your money, offering a higher interest rate than a regular savings account. On the other hand,… read more…
- How a RIA Can Help Manage Your Real Estate Investments
Registered investment advisors (RIAs) give investment advice to clients in a fiduciary capacity. RIAs can help with managing a variety of investments, including real estate holdings. If you hold property in your portfolio or are considering adding this asset class, you may benefit from working with an RIA real estate expert. Looking for expert investment… read more…
- TWR vs. IRR: How Do They Differ?
The time-weighted rate of return measures how your investments have performed in a vacuum. Basically, for the assets that you purchased, it determines how much have they gained or lost value. Internal rate of return measures how your portfolio has performed based on your contributions, transactions and withdrawals. Given your money management strategy, this strategy looks… read more…
- Different Types of Portfolio Rebalancing Strategies
The art of successful investing lies not only in making astute initial choices but also in the finesse of portfolio maintenance. Portfolio rebalancing is an investment strategy that aims to adjust your asset allocation based on current performance and goals. Here are common strategies that you can use to keep your investments on track. Consider… read more…
- Differences Between ETFs vs. Index Funds vs. Mutual Funds
ETFs, Index Funds and Mutual Funds are common types of investment vehicles that pool investor money to buy diversified portfolios of assets. Each differs in structure, management and trading methods. A financial advisor may be able to help you choose the right investments for your goals. Here’s a breakdown of the key differences. What Are ETFs?… read more…
- Bond Yields Are High and Prices Are Falling: What Does It Mean for Your Portfolio?
New bonds pay more and old bonds are worth less. This is the plain English version of what’s going on in the bond market right now. Translated to finance-speak, bond yields are on the rise while returns are steadily falling. For investors, it’s a good time to hold and an even better time to buy… read more…
- Municipal Bonds vs. Corporate Bonds
Bonds often play an important role in a well-rounded investment portfolio. While both municipal and corporate bonds can generate consistent income, they are distinct in several ways that can impact your investment strategy. Municipal bonds offer tax advantages and lower credit risk. Corporate bonds, on the other hand, may provide higher yields but come with… read more…
- What Is a Real Estate Limited Partnership (RELP)?
Real estate can be a stable and lucrative asset class. Yet, the process of acquiring, managing and selling properties could also be overwhelming for individual investors. This is where real estate limited partnerships (RELPs) come into play, offering an accessible route for laypeople to reap the potential rewards of real estate investment without managing the… read more…
- How Much of Your Paycheck You Should Invest in Stocks
Investing in stocks presents an effective way to grow personal wealth and achieve financial stability. But have you ever wondered how much of your paycheck should go into investing in stocks? While there’s no one-size-fits-all answer, there are some key principles to consider to make informed decisions about your investments. A financial advisor can help… read more…
- What Is Real Estate Appreciation?
Real estate appreciation refers to the gradual increase in the value of an owned property over time. This increase in value can occur due to various reasons, such as shifts in the real estate market, economic transformations or improvements made to the property itself. Appreciation is noteworthy, as it is one of the main ways… read more…
- Pros and Cons of Investing in Stocks
Investing in stocks refers to the practice of purchasing shares of a company with the anticipation that these ownership stakes will appreciate in value over time. However, like any investment, it carries inherent risks and uncertainties. In the face of an ever-changing financial landscape influenced by factors like economic policies, technological advancements and global events,… read more…
- Real Estate Crowdfunding vs. Real Estate Investment Trusts (REITs)
Investing in real estate is an attractive venture for both seasoned and novice investors due to its stability and the potential for substantial returns. However, the traditional approach of purchasing property isn’t the only way to add real estate exposure to your portfolio. Real estate crowdfunding and real estate investment trusts (REITs) are two popular… read more…
- Forget About ‘Timing the Market’: Schwab Research Reveals the Optimal Way to Invest
Can investors realistically time the market to maximize returns, especially over the long term? According to a recent study from Charles Schwab, perfect market timing is practically impossible. The firm’s research showed that most investors are better off investing as soon as possible using a buy-and-hold strategy rather than trying to predict short-term peaks and… read more…
- How Are Restricted Stock Units (RSUs) Taxed?
Restricted stock units (RSUs) are a form of equity compensation that companies often grant to employees as part of their overall compensation packages. The taxation of RSUs in the United States is subject to specific rules, and the timing and amount of taxes owed can vary based on several factors. Here’s what you need to… read more…
- Investing in Private REITs vs. Public REITs
Real estate investment trusts (REITs) are a popular choice for investors looking to add real estate exposure to their portfolios without the hassle of owning physical properties. These entities pool money from investors to buy and manage real estate, and return a portion of the profits to those shareholders. However, it’s important to distinguish private… read more…
- What Is Stockholders Equity and How Is It Calculated?
Stockholders’ equity refers to the assets of a company that remain available to shareholders after all liabilities have been paid. This number can be positive or negative. Positive stockholder equity can indicate that a company is in good financial health, while negative equity may hint that the company is struggling or overextended with debt. Stockholders’… read more…
- How to Calculate the Net Present Value (NPV) on Investments
Net present value (NPV) represents the difference between the present value of cash inflows and outflows over a set time period. Knowing how to calculate net present value can be useful when choosing investments. In a nutshell, an investment’s NPV can help you to analyze its potential for profit. In business settings, it can also… read more…
- What Trailing 12 Months (TTM) Is Used For in Investing
Trailing 12 Months, or “TTM,” is a financial data format. It refers to a set of data that covers the past 12 months. Investors can use a TTM analysis for any metric they would like to analyze, from revenue to P/E ratios. It allows them to see how a company has performed over the past year… read more…
- The Most Important Benefits of Portfolio Diversification
Portfolio diversification is a commonly used investment strategy that involves spreading your money across various financial instruments, economic sectors and other categories to buffer against uncertainty and potential losses. With a well-diversified portfolio, the impact of a single underperforming investment might be softened by the performance of others. In simplest terms, diversification means not putting… read more…
- How Much Money You Need to Invest in REITs
Traditionally, investing in real estate has been seen as a path to wealth, but it comes with a fair share of expenses and responsibilities, including maintenance and property management. Real estate investment trusts (REITs), however, allow individuals to participate in the real estate market without having to buy physical properties. While REITs cater to investors… read more…
- How to Buy Gold With Your 401(k)
Investing in gold with a 401(k) involves using retirement savings to invest in gold-related assets, which may range from physical gold bars and coins to gold ETFs and mutual funds. It’s not as straightforward as buying stocks or bonds, but it can offer a valuable alternative to more well-known types of securities. Diversifying your portfolio… read more…
- Risks of Investing in Stocks and How to Avoid Them
Every financial investment carries risk. And while conventional wisdom says that you could earn a higher return by taking on more risk, veteran investors will tell you that learning how to manage that risk is the steadiest path to making a profit. Here’s a roundup of common types of risk that affect investments and how… read more…
- Everything to Know About Investing in Emerging Markets
As the world becomes more interconnected, investing internationally has turned into a favored avenue to diversify investment portfolios and seize the sunrise opportunities abroad. One region that has sparked investors’ interest globally is the emerging markets. This means investing in specific international markets that are in industrialization mode, which can lead to a lot of… read more…
- What Is Cumulative Preferred Stock?
Investing in dividend stocks is something you might consider if you’re interested in creating passive income. There are different ways that dividends can be paid out, depending on which type of stock you own. Cumulative preferred stock distributes accumulated dividends on a preset schedule, before any dividend payouts to common stock shareholders. If you own… read more…
- What Fully Diluted Shares Are and How to Calculate
Picture this: You are the contented holder of a particular company’s stock at $20 per share. You wake up the next morning to find your shares have decreased in value even though the company’s financials haven’t changed. What happened? The company diluted its shares, reducing your investment’s strength by introducing new stock for investors and… read more…