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?
Nearly everyone has heard of a relatively new investment product called exchange-traded funds (ETFs), but there is much confusion about what they are and how they differ from mutual funds. This article will outline the many advantages of exchange-traded funds over mutual funds. A mutual fund is an aggregation of stocks, passively or actively managed. … Continue reading The Unbeatable Advantages of Exchange-Traded Funds (ETF)
In a low interest rate environment, bank accounts are paying very little in interest. Government bonds, too, offer interest yields well below the rate of inflation, so your money not only won’t pay you a decent income, but will gradually lose its purchasing power. If you live on the interest from your savings, you could … Continue reading How To Increase Your Dividend Income