- What Is the Opportunity Cost of an Investment?
Opportunity cost quantifies the potential benefits that are lost when one alternative is chosen over another. Whether you’re an individual deciding whether to invest in bonds over stocks or a business leader strategizing for growth, the principles of opportunity cost can help you make more informed investment choices. A financial advisor can also help you… read more…
- Pros and Cons of Investing in Treasury Bonds
Treasury bonds are often considered the bedrock of conservative investment portfolios. These are U.S. government bonds that offer a unique combination of safety and steady income. But while they are lauded for their security and reliability, potential drawbacks such as interest rate risk, low returns and inflation risk must be carefully considered. If you’re interested… read more…
- What Is a Wirehouse?
A wirehouse is a large, full-service brokerage firm that operates on a national or international scale. These institutions, also known as wirehouse brokerage firms or wirehouse banks, typically offer a range of financial services, including investment banking, asset management, wealth management and brokerage services. Understanding the role that these institutions play in the financial services… read more…
- What Is a Regulated Investment Company (RIC)?
A regulated investment company (RIC) can offer you a unique investment opportunity by pooling resources together from numerous individuals to invest in a diversified portfolio of assets. These entities are designed to mitigate risk and potentially enhance returns through professional management. They are governed by specific tax laws and regulations. The advantages of RICs, which… read more…
- Exchange Traded Product (ETP) vs. Exchange Traded Fund (ETF)
Exchange-traded products (ETPs) are a broad category of investments that are listed on stock exchanges and trade like stocks. ETPs comprise various products, including exchange-traded funds (ETFs), exchange-traded notes (ETNs) and exchange-traded commodities (ETCs). In other words, ETFs are a type of ETP – not an alternative to them. A financial advisor can help you… read more…
- What Is an Exchange-Traded Product (ETP)?
Exchange-traded products (ETPs) are investment vehicles traded on major stock exchanges, offering investors exposure to a diverse range of assets without directly owning them. While exchange-traded funds (ETFs) are the most common variety of ETP, they aren’t the only kind. Exchange-traded commodities (ETCs) invest in precious metals and other resources, while exchange-traded notes (ETNs) are… read more…
- Understanding Cyclical vs. Non-Cyclical Stocks
Cyclical stocks are closely linked to the macroeconomic conditions while non-cyclical, or defensive stocks, remain relatively unaffected by economic fluctuation. These types of stocks behave under diverse economic conditions and they can potentially have a large impact on your investment portfolio. It’s important to understand how each works so that you can choose the right… read more…
- 6 Investment Tips for Your Prime Earning Years
There are many different types of financial investments. But they all typically take a strategic approach to enhance your wealth over time. This can involve dedicating resources, often money, to buy diverse assets with the expectation of generating a profit in the future. Working with a financial advisor can help you create a specific investment… read more…
- How to Negotiate for Equity in a Startup or Private Company
Equity can make you rich. But that’s a bold claim for most workplaces. If you’re lucky enough to work for a future unicorn then, yes, getting a share of ownership really can set you up for life by age 40. That, however, is rare. Nevertheless, stock options and other forms of equity can be an important… read more…
- Differences of Day Trading vs. Investing
Day traders and investors take divergent approaches to navigating financial markets and generating returns. While day traders aim to earn a quick profit from slight shifts in the market each day, investors prefer to take a longer-term approach. Despite the differences between day trading and investing, both strategies share some basic similarities. A financial advisor… read more…
- 5 Investing Blogs You Should Consider Reading
Investing is like any field. If you want to get better at it, you need to learn. One way to do this is by staying on top of current trends by reading popular investment blogs. So whether you’re trying to up your game or just enjoy finance, here are five investing blogs that advisors should consider… read more…
- How a Bond Tent Can Help Your Retirement Strategy
Many retirees face the greatest risk in the years leading up immediately to retirement. They haven’t yet begun collecting some of the more stable benefits like Social Security, which can help protect their portfolio against market downturns. Also, they no longer have many years ahead to rebuild their portfolio from losses. And if a recession… read more…
- How to Sell Restricted Stock Units (RSUs)
Restricted stock units (RSUs) are a form of equity compensation that some companies offer to their employees. Through this benefit, you receive shares of company stock subject to certain terms and conditions. Once these conditions are met, your shares vest. You get full ownership of these shares and are free to sell them on any… read more…
- Stock Advisor Websites for Investors
Stock advisor websites provide individual investors with useful tools, research and guidance to build their wealth. Many investors count on these handy online sources for ideas and information on markets and individual securities. These sites offer stock screeners to identify opportunities, articles analyzing specific companies, model portfolios showing how to construct a diversified mix of… read more…
- 6 Stock Option Trading Strategies to Consider
Options give investors ways to profit whether stocks rise, fall or hold steady. But they also come with their own complexities and pitfalls. Options traders have developed an expansive set of strategies that aim to help them hedge against risk, generate income or profit from speculation while also not exposing them to undue risk. Strategies… read more…
- How to Find Rental Properties in Different Markets
Investing in rental properties can provide attractive returns and diversification for ordinary investors. But finding good rental real estate deals in other markets poses challenges. When location is a prime factor in determining whether a property is attractive, an investor based far away has some built-in disadvantages. A financial advisor can explain the basics of… read more…
- How to Value a Startup for Investing
Startup opportunities are everywhere. Far from the common vision of a tech company with some new string of code, the startup world is filled with sandwich-slingers, cardboard salesmen and trial attorneys looking to get off the ground. And these founders are always looking for money, because the one thing an entrepreneur doesn’t typically have is cash. And… read more…
- What Is Constant Proportion Portfolio Insurance (CPPI)?
Portfolio insurance strategies aim to limit losses in investment portfolios while still capturing some upside. Constant proportion portfolio insurance (CPPI) is a dynamic approach that adjusts asset allocation between risky and stable assets based on portfolio value. When values go down, it moves more money into safer places so your total portfolio doesn’t fall too… read more…
- What Is Negative Carry?
Negative carry in investing refers to a situation where the cost of holding an investment, including expenses, interest, or financing charges, exceeds the income or return generated from that investment. Calculating this can help you avoid costly investment mistakes and identify opportunities to take advantage of potential increases in asset value when borrowing money to… read more…
- Understanding Gap Trading Strategies
Gap trading is a common stock trading term, referring to a strategy that aims to take advantage of the price difference or “gap” between the last closing price of a financial asset and the next opening price to capitalize on potential short-term fluctuations in the market. Let’s break down how you might be able to… read more…
- How to Trade Options With Schwab
If you would like to trade options, Schwab is a good choice. Since acquiring TD Ameritrade, Schwab has integrated the popular Thinkorswim trading platform into their own online brokerage. Thinkorswim is particularly useful for complicated, highly technical trading, which is exactly what options traders need. So, if you’re a Schwab customer, here’s what you should… read more…
- What’s the Average Return on an All-Bond Portfolio?
Like all markets, bonds fluctuate. Your returns will be based on what you hold, when you buy it, tax treatment and other factors. While many choose to diversify their portfolios across stocks, bonds and other assets, an all-bond portfolio may allow for more predictability and income generation. You can also diversify an all-bond portfolio with different… read more…
- What Is the Directional Movement Index (DMI) Indicator?
The Directional Movement Index (DMI) is way to project an asset’s price movement by combining a handful of individual metrics, often for the sake of technical analysis in market trading. Using historical price movements and current circumstances, investors may use the DMI to estimate the direction and strength of an asset’s price. While it may… read more…
- How to Open a Margin Account With Fidelity
Margin accounts allow investors to borrow against their portfolios to buy more securities. Margin can turbocharge your returns when stocks go up, as profits are made on the full position size including the borrowed money. However, trading stock on borrowed money also has serious risks, so margin privileges are reserved for active and experienced self-directed… read more…
- Popular Low-Risk Investments for Retirees
Understanding different safe investment options available to you during retirement, and the pros and cons of each, can help you make smart decisions about how to manage your money after you leave the workforce. Here are five common safe investments that can help you grow your wealth in retirement. A financial advisor can guide you… read more…