For investors who are looking to diversify their investment portfolio or to minimize the risks inherent with purchasing only one stock, mutual funds have historically been touted as the investment vehicle of choice. Major investment firms such as Vanguard and Fidelity have even made their names by offering a plethora of mutual funds to investors. … Continue reading Why ETFs Should Be Part Of Your Portfolio
The current state and structure of the world economy, as well as its frequent uncertainty, makes the diversification of one’s income a critical component of good personal finance. However, if you are starting from scratch, diversifying your income streams can be very difficult. In this article, we will look at some of the many reasons … Continue reading The Importance of Income Diversification
Unless you invest in an index fund, your mutual fund has a manager who’s paid a fee to decide what to buy and sell. That fee comes out of your money, whether it’s paid as an upfront or back end load, or as part of the expense ratio for the fund. Since those fees reduce … Continue reading Is Your Mutual Fund Manager a Keeper?
There is no doubt that the stock market can be a volatile place, but it can also be a rewarding one. Most financial experts recommend that investors keep a portion of their money in the stock market throughout their lives, even after they retire. Keeping a portion of your money in the stock market is … Continue reading The 10 Commandments of Stock Market Investing
Building a solid retirement plan requires foresight and planning over the long term. However, one of the primary reasons so many people postpone their plans to build wealth is the need to put aside cash each week to keep their investments growing. Contributing cash into a savings plan each week is fine if you have … Continue reading Growing Your Stock Portfolio without Spending Any Extra Money
An economic downturn can be the best time to pick up bargains in the stock market, but the process is terrifying. When you bet against the crowd, you’ll feel doubly foolish if you’re wrong. So how can you select companies that will leave you with the last laugh? Always ask: What will happen if I’m … Continue reading How to Invest in an Economic Downturn
In the past workers could count on a lifetime of income through a traditional defined benefit pension program. If those workers were loyal to the companies they worked for, they could receive a check for life when they finally retired. Those days are long gone, and today’s workers need to look out for their own … Continue reading 5 Big Investing Mistakes and How You Can Avoid Them
Every now and then, the stock market goes insane. Sometimes Mr. Market acts like a drunken sailor on a four-day binge and bids up everything in sight. Companies with no earnings sell for astronomical prices. You can play Blind man’s Bluff with the stock tables, and anything you pick will be a winner. Other times, … Continue reading Market Crash Primer
Bonds are safe and a better alternative than those risky stocks, right? Don’t bet your future on it. For the last 20 years, bonds have outperformed stocks. That seldom-seen scenario has individual investors abandoning the stock market and pouring into bonds at an unprecedented rate. Like sheep to the slaughter, they haven’t bothered to ask … Continue reading Why Bonds are a Bad Bet
During the market meltdown of 2008, nearly every financial website contained an article or two on the death of buy-and-hold investing. After all, if you bought and held right before the crash, you probably saw 40% of your money disappear for quite some time. But those making the funeral plans might want to hold off … Continue reading Is Buy-and-Hold Investing Dead?