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Apr 11, 2018Whether you're new to investing or have been doing it for years, mutual funds offer a great way to invest your money. It allows you to invest in multiple stocks and bonds without the hassle of choosing and buying each individually. Plus, mutual fund companies can do all this work for you. While convenient, mutual funds aren't always accessible to all investors due to their potentially high minimums.
Feb 01, 2018Take billionaire investor Warren Buffett's advice for how to learn to make good money decisions, and pick up a book. Whether you're a beginner or a seasoned investor in need of a refresher, reading one of the best investing books is a great way to sharpen your knowledge. With these books, you can pick Peter Lynch's brain, learn the history of Wall Street or simply figure out if you're ready to use that spare money tucked away in your savings account to start investing.
Mar 16, 2018A wealth manager is a subset of financial advisor that primarily serves high-net-worth and ultra-high-net-worth individuals - in other words, people with wealth that needs managing. A wealth manager's role is far more comprehensive than just offering a client investment advice. These financial professionals provide a holistic suite of services that encompasses all parts of a person's financial life, including both investment management and financial planning, as well as accounting and tax services, retirement planning, estate planning and more.
Feb 08, 2018When it comes to investing, millennials aren't known for being a reckless bunch. According to a study published by UBS earlier this year, Americans aged 21 to 36 are the most fiscally conservative generation since the Great Depression. Their better-safe-than-sorry attitude can be chalked up in part to the economic turmoil of the last few years and the unique financial challenges they face.
Feb 08, 2018Everyone makes mistakes and when it comes to your investment strategy, some wrong moves can be worse than others. Whether you're dipping your toes into the investment game for the first time or you've been playing the market for years, there's always the possibility that your strategy may backfire. Maxing out your returns means knowing what you should and shouldn't do with your money. Here are some of the most common pitfalls investors should try to avoid.
Apr 20, 2018Making an investment plan involves more than just choosing a few stocks to put money in. You have to consider your current financial situation and your goals. It's also important to define your timeline and how much risk you're willing to take on in order to determine your optimal asset allocation. Read on for a step-by-step guide on how to make an investment plan.
Apr 19, 2018When creating an investment plan for your portfolio, diversification is the most important rule. Diversification essentially means spreading your assets among a variety of investments. Doing this helps to mitigate risk and provides the potential to improve returns. Read on to find out more about how to diversify your portfolio.
Apr 06, 2018If you want help making investment decisions and managing your investments, you may want to seek the advice of a professional, specifically an investment advisor. An investment advisor, or investment adviser or securities advisor, is a financial advisor who, for a fee, provides guidance and management for your investment portfolio.
Apr 03, 2018For anyone trying to choose a financial advisor, Form ADV is an essential point of reference. Form ADV is paperwork that all financial advisor firms that manage more than $25 million must file with the U.S. Securities and Exchange Commission (SEC). The publicly available paperwork includes dozens of pages of information about a firm, including its fee structure, total assets under management, other business activities, any disciplinary issues on record and more.
Mar 22, 2018When you place your investments in the care of an investment manager or advisor, you’ll often run into various fees. The advisor can charge you a percentage of your assets, a transaction fee per trade, commission fees and more. To remove some of the confusion and clutter that comes with this fee structure investment managers choose instead to charge a wrap fee.
Jan 12, 2018Investment banking is a division of banking focused on raising capital for companies, governments and other entities. Investment banks, which are typically private companies, may underwrite debt and equity securities, assist with mergers and acquisitions, provide financial advisory services and offer IPO (initial public offering) support when companies go public.
Mar 22, 2018When it comes to personal finance, sometimes it seems like there's a whole new language that you need to learn. There are terms like expense ratios and asset allocations. One thing you’ve probably heard about is a portfolio. Investment portfolios come up any time you talk about investing. That includes investments that you make into a retirement account, like a 401(k), as well as any other investments in the stock market. But what exactly is an investment portfolio?
Nov 22, 2017Figuring out how to buy bonds is a deceptively complicated process. Before you make your purchase, it's important to understand what types of bonds there are, and how much risk and reward each bond carries. Bonds can be a good way to round out a diverse portfolio, but not all bonds are as straightforward and reliable as the ones your grandma gave you for graduation.
Mar 20, 2017Remember Brexit? In June 2016, more than 30 million people in the U.K. took part in a referendum. Most of the voters (51.9%) wanted Britain to exit the European Union (hence the term Brexit). Prime Minister Theresa May will begin the process of leaving the EU by the end of March 2017. Meanwhile, France is preparing for an election that could result in a so-called Frexit.
Jan 03, 2017Not all investors in the stock market are individuals who buy and sell their own hand-picked stocks and bonds. With the rise of mutual funds and index funds, institutional investors have become bigger players. Institutional investors are large funds made up of many individual investors. Pension funds are a prime example of an institutional investor. Read on to find out more about institutional investors and their role in the market.
Dec 30, 2016If you were paying close attention to the presidential race, you may have heard someone say something about carried interest. Or maybe you have finance friends who've mentioned this term in passing. Either way, if you're not sure what carried interest is, we're here to help. We'll explain what this term means and how it's related to a controversial tax loophole.
Dec 27, 2016If you only have stocks and bonds, you can diversify your portfolio by investing in real estate. Buying a rental property can provide you with a steady stream of income, especially in a market where rental rates are on the rise. Not sure whether you should become a landlord? Asking yourself these questions can help you decide whether you should make buying an investment property one of your new year's resolutions.
Dec 20, 2016J.K. Rowling's net worth is an estimated $1.2 billion. Since 1997, J.K. Rowling has captivated book lovers across the globe with her renowned Harry Potter series. In addition to publishing that series, she has written other novels and stories and has gotten involved with the film adaptations of her books. Read on for a breakdown of Rowling's net worth.
Oct 18, 2017Goldman Sachs has a higher profile than many other investment banks. Its name is frequently invoked as a stand-in for Wall Street and the financial sector. Secretary Clinton's speeches to the company were a hot topic during the 2016 presidential campaign, and President-elect Trump has tapped a former executive from the bank, Steven Mnuchin, to be Treasury Secretary. So what is Goldman Sachs? Let us explain.
Nov 23, 2016Several businesses and divisions of businesses market themselves as providing targeted investing advice for women. But do women need investing advice that's different from the advice men receive? It's a controversial issue. Let's take a look at some of the arguments for and against financial advice and financial services marketed specifically to women.
Oct 14, 2016Arbitrage is the buying and selling of assets, profiting from the price difference between the price paid to buy and the price at the time of sale. In a successful arbitrage deal, the turn-around time between buying and selling is minimal and the transaction costs (the cost of buying the goods and bringing them to sale) are low or nonexistent.
Oct 31, 2016Economic recessions are never pleasant. But they're an unfortunate reality that investors have to deal with from time to time. While it's impossible to predict when a recession will hit, there are often clues that warn of a potential economic downturn. If you're worried that another recession could hurt your portfolio, it might be a good idea to take these tips into consideration.
Dec 19, 2016If you've been too afraid to take a serious look at your investment portfolio, this could be the perfect time to finally do it. Even if you think you've made good financial decisions, you could be hurting your bottom line without realizing it. If you've made any of the following investing mistakes, it might be time to start using a different strategy.
Aug 22, 2017One common misconception about investing is that you need a big bankroll to get started. Some financial technology companies are challenging that notion by bringing the concept of micro investing to the masses. The idea is simple: Instead of investing large chunks of cash, you can do it in small increments. But can you really get rich by making micro investments?
Oct 31, 2017When the economy is booming, you may not think about what could happen to your investment portfolio during a market downturn. But economic slowdowns tend to be cyclical, so it's not unrealistic to expect another recession at some point in the future. Thinking about what to invest in when the economy starts to slide is important if you want to protect your assets. Here are five things to consider when a recession hits.
Oct 04, 2016A Ponzi scheme is a kind of investment scam in which investors of longer standing are paid with the buy-in contributions of newer investors. To avoid collapse, a Ponzi scheme must secure a continual supply of new investors. When a Ponzi scheme is exposed or otherwise comes to an end (often because the fraudster takes the money and runs), investors face disastrous consequences.
Nov 30, 2016Beyonce's net worth is an estimated $265 million in 2016. Beyonce is an icon known for her electrifying performances and her empowering lyrics. At 35, she's one of the youngest people on Forbes’ 2016 list of America’s Richest Self-Made Women. Read on to find out how she accumulated her wealth.
Nov 30, 2016Drake's net worth is an estimated $60 million as of May 2016. The Canadian actor-turned-rapper's annual earnings have risen, going from a reported $10 million in 2010 to $39.5 million in 2015. Today, he's one of the wealthiest hip-hop artists. Here's a look at his assets and some of his main sources of income.
Sep 29, 2016What happens on Wall Street has a major influence on the U.S. economy and financial systems around the world. So in order to become a part of this exclusive group of investors, bankers and financial experts, you'll need to prove that you have what it takes to succeed. If you're dying to work at the New York Stock Exchange or Goldman Sachs, read on to learn how to get a job on Wall Street.
Nov 30, 2016Donald Trump's net worth is estimated to be between $3 and $4.5 billion. It's hard to keep track of where Trump stands financially and, in some cases, politically. Here's how Trump's net worth breaks down.
Nov 30, 2016Kanye West’s net worth is an estimated $145 million. West is one of the most polarizing figures in entertainment today. The outspoken rapper knows how to keep fans guessing with his unpredictable behavior. While we don't know what he'll do next, one thing we do know is that he appears to be as wealthy as he is provocative. Let's look at how the star's assets and debts add up.
Sep 23, 2016We seem to have a fascination with the net worth of celebrities, but the wealthy aren't the only ones whose net worth is of interest. It's a good idea to know your own net worth so you can assess the state of your assets and liabilities and figure out how to increase your financial stability. Calculating your net worth doesn't require an accounting degree. Let us walk you through it.
Sep 12, 2016Although the World Trade Organization (WTO) affects all of us, many people aren't very familiar with it. You might remember hearing about it over the years since its beginnings in 1995. If you had no idea that it exists, don't worry. We'll explain what the organization does and discuss what critics have to say about it.
Sep 09, 2016The debt-to-equity ratio is one of the metrics people use to evaluate publicly traded companies. A high ratio indicates that a company is highly leveraged and may be a risky investment. Knowing what the ratio is and what makes a good debt-to-income ratio can help you make investment decisions. Read on for more about this useful number.
Sep 05, 2016Each election year, many of us feel uncertain about the new personnel and policy changes that could be in store for our country. If there's one thing we all can agree on, it's that the presidential race is often filled with surprises. Election years can bring economic surprises as well. Here's a look at how presidential races can affect the nation's economic climate.
Aug 30, 2016What would you do with a million dollars? Would you immediately pay off your student loans and your credit card debt? Or would you take that trip you've been planning for years? These days, becoming a millionaire isn't as far-fetched as it may seem. With the right strategy in place, you too could be earning a seven-figure salary. If you've struggled to turn that dream into a reality, here's how to make a million dollars.
Aug 30, 2016When you're making investing decisions and choosing between different stocks, one factor to take into consideration is the P/E Ratio. The P/E ratio is the price/earnings ratio. It's the price per share of a given company's stock, divided by the company's earnings per share. How can it help you as an investor? Let us explain.
Aug 24, 2016Jumping into the investing game in your 20s can pay off big time by the time you're ready to cut your losses and retire. Unfortunately, many millennials opt out of building a portfolio. So why are 20- and 30-somethings steering clear of the market despite the potential payoff? Here are four common excuses millennials are using to get out of investing.
Aug 22, 2016If you've strayed away from your original asset allocation, rebalancing can help you get back on track. And if you want to lower your investment risk, rebalancing can protect your portfolio from market volatility. Before you make adjustments, however, it's best to avoid doing anything that could jeopardize your investment strategy. Here are four rebalancing mistakes you can't afford to make.
Aug 19, 2016
The Trans-Pacific Partnership (TPP) is one of the hot-button issues that has been mentioned repeatedly throughout the course of the 2016 presidential race. Constituents and politicians on both sides of the aisle have strong opinions about whether or not the TPP is a good thing. If you're still not sure what the TPP is all about, here's everything you need to know about it.
Aug 19, 2016Films are expensive to make. If you're making a movie without the backing of a studio and its resources, you'll need to get funding from somewhere. And if you're on a really tight budget, you might need to get creative. If your other fundraising ideas fell through, check out five ways to finance an independent film.
Aug 15, 2016Maintaining a good working relationship with your financial advisor is important, especially when you're trying to build wealth. But annoying your advisor or doing things that drive him up the wall could prevent him from wanting to help you meet your financial goals. If your advisor seems to be avoiding you these days, here are five reasons why that could be happening.
Aug 08, 2016If you're only investing in a mixture of stocks, mutual funds or bonds, there are plenty of ways to add diversity to your portfolio. Fine art can be a lucrative investment but it takes a certain amount of knowledge and skill to choose pieces that are likely to increase in value over time. If you're new to art collecting, here's a quick guide to getting started as an investor.
Aug 08, 2016Tech stocks have become a popular choice among investors. While owning a share of stock in Google or Apple might be out of reach for some people, there are plenty of companies whose stock is more affordable. That doesn't mean, however, that you can just dive in without doing your homework. Take a look at some common mistakes people make when investing in tech.
Aug 03, 2016If most of your investments are tied up in bonds or stocks, becoming a venture capitalist is one way to diversify your investment portfolio. But jumping into it isn't something any investor should do without understanding what it involves. If you have a substantial amount of cash available to invest, keep reading to learn more about the pros and cons of venture capitalism.
Aug 03, 2016While it may seem like a company should have to make a profit in order to be considered successful, that's not always the case. Take Amazon, for example. Although it was founded back in 1994, Amazon didn't actually make a profit until 2001. But the company has been a major online retailer for years. Read on to find out how businesses can succeed even when they're not profitable.
Aug 03, 2016Many high net worth investors turn to experts when they need financial advice. And while many of them trust their advisors to help them build and maintain their wealth, there are plenty of things that investors wish advisors would do differently. New research sheds some light on what wealthy individuals and investors want (and don't want) from their financial advisors.
Jul 27, 2016It looks as though the UK - or at least England - might be leaving the European Union. Brexit (as the act of Britain leaving the EU is commonly referred) is non-binding, so some people are pushing for a second referendum. If Britain does leave the EU, the decision would affect more than just the people living in the country. In fact, Brexit could have long-term consequences for everyone.
Jul 12, 2016Investing can be intimidating, especially when you're doing it for the very first time. It's easy to get confused and overwhelmed when trying to understand financial terminology and many new investors worry about making a false move. If you're nervous about buying bonds, commodities, mutual funds or stocks, here are five tips that'll help you get a grip on the financial markets.
Jul 18, 2016Owning your own business is a lot of work. While it can be rewarding, including financially, we were interested to see how opportunities compared for minority and non-minority business owners. SmartAsset decided to dig into the data to find out which metro areas in America are the best specifically for minority business owners. To do so, we looked at three variables - income ratio, profitability ratio and ownership ratio. See our full methodology at the end of the study.
Jul 05, 2016Because of Brexit, the pound - i.e., British currency - has just plunged to a thirty-year low against the dollar. The euro has also fallen to a low against the dollar. The Japanese yen's value has also gone up in value in comparison to the pound. But what does that mean for you - if you haven't invested in currency? And what does it mean for a currency to be strong or weak? It might affect you more than you think.
Jul 01, 2016Confidence is an important trait to have as an investor, but there is such a thing as being over confident. A recent study provided some insight into the gap between investor expectations and the amount of income they actually earned. Whether you're a novice investor or a seasoned pro, here are a few common traps that you might want to avoid falling into.
Jun 30, 2016Diversifying your investment portfolio doesn’t just involve investing in different types of stocks or bonds. By investing in foreign markets, you can lower your overall investment risk and potentially increase your earnings at the same time. If you're interested in investing in an international market, one way to get started is to get an American Depositary Receipt (ADR). Here's everything you need to know about ADRs.
Jun 28, 2016Entrepreneurship has its perks and one of them is the ability to make wealth creation a reality if you're running a successful business. Generating a high net worth as an entrepreneur requires some luck but it's more about making sound financial decisions. A recent survey reveals some interesting details about how wealthy business owners manage their money. Some of those lessons can even be used by the rest of us.
Jun 24, 2016News recently broke that Microsoft is about to acquire LinkedIn. LinkedIn is the most widely used social networking site for business and other professional activities. Some news outlets have suggested that this is Microsoft's attempt to dominate the tech world. They also hint that Microsoft is betting that the traditional software business will move to cloud computing, a service where the customers rent internet services. In light of this recent business purchase, we're taking a look back at companies that we might have all forgotten were acquired by other companies.
Jun 21, 2016Small-cap stocks are securities that are tied to companies whose market values often fall between $300 million and $2 billion. Adding some of them to your investment portfolio could be a good idea, especially if you're interested in building long-term wealth. If you usually invest in large-cap stocks, here are three reasons to consider throwing some small-cap securities into the mix.
Jun 20, 2016There's nothing wrong with investing in U.S. markets. But looking at foreign markets might open some doors and provide you with some new, lucrative opportunities that you didn't have access to before. U.S. securities only represent a small portion of the global market. Investing in international markets does come with certain risks, but if you approach it strategically, it just might pay off.
Jun 20, 2016Investing in real estate can add diversity to your portfolio while creating a sustainable source of passive income. If you're a high net worth investor, you may be able to expand your horizons beyond the basic fix-and-flip by moving into the luxury real estate market. If you're interested in investing in luxury properties, here are a few things to keep in mind before diving in.
Jun 17, 2016Deciding which stocks to invest in can be difficult. There are different kinds of stocks and all of them have their advantages and disadvantages. Compared to value stocks, growth stocks can potentially generate higher returns over time and you can start investing in them without spending a ton of money. Here are some tips to consider before you invest in growth stocks.
Oct 17, 2017Choosing the right investments is an important part of building wealth. If you don't have the time to take an active role in managing your portfolio (or you're just feeling lazy), you can still find investments that have a good chance at providing you with steady returns. The following types of investments are designed to generate passive income and require minimal effort on your part.
Mar 28, 2018The Panama Papers leak was a global scandal. In one of the biggest data leaks in history, millions of documents revealed that banks, political leaders and wealthy individuals had allegedly hidden billions of dollars in shell companies through a Panama law firm. Reportedly, the scheme also allowed some of the firm's clients to evade taxes. If you don't understand what shell companies are, here's everything you need to know.
May 25, 2016Title III of the 2012 JOBS Act allows both accredited and non-accredited investors to participate in equity crowdfunding. Under these new rules, anyone can invest in equity shares of a startup through a crowdfunding platform, regardless of their income or net worth. If you're thinking about wading into equity crowdfunding, there are some factors you'll want to consider first.
Jun 27, 2017With a traditional rewards credit card, you can earn miles, points or cash back. If you have an investment rewards card, however, you can use your rewards to save for retirement or fund your child's college expenses. But there are some potential pitfalls to watch out for. Before you invest with credit card rewards, it's a good idea to find out what you're signing up for.
May 19, 2016There's more than one way to invest. Besides choosing a vehicle to put your money into, you'll need to pick an investing strategy. The one that you select will depend on various factors, including your target asset allocation and the kinds of returns you want to see. If you've never heard of dollar-cost averaging, we'll review how this investing technique works.
May 18, 2016The 2012 JOBS Act was designed to boost economic growth and make it easier for small businesses and startups to raise capital. Title III of the law deals specifically with equity crowdfunding and beginning May 16, non-accredited investors can begin financing startups in return for equity. Before the new rules take effect, it's helpful to understand how Title III may impact your investing strategy.
May 16, 2016Hiring a financial advisor might be a good idea if you need help managing your portfolio, planning your estate or working toward your long-term goals. Knowing that you can trust your advisor to make sound decisions is the key to a good professional relationship. If you're worried about falling victim to a Bernie Madoff-style scam, here are some ways to tell that you're being ripped off.
May 17, 2016When startups need additional funding to get off the ground, they can look for venture capitalists (VCs) who are willing to help them. Venture capitalists are investors who offer emerging companies financial support in exchange for an equity share. Once the startup goes public, investment firms can sell off their equity stakes, hopefully for a sizable profit.
May 12, 2016When it comes to the stock market, millennials aren't exactly embracing it with open arms. Recent reports show that they hold most of their investments in cash. While cash is king in terms of liquidity and safety, it doesn't have the same return potential as a stock or a mutual fund. For young investors who are cautious about investing, dividend investing may be something worth considering. If you're ready to give it a try, here are four tips to keep in mind.
May 12, 2016Incorporating real estate into your portfolio is a smart move if you want to diversify and include some insulation against market volatility. Investing in commercial real estate can offer you the opportunity to realize some significant returns, but it's best to know as much as possible about a property before investing in it. If you're ready to become a commercial real estate mogul, here's a quick rundown of how different property investments compare.
May 09, 2016By investing in real estate you can add diversity to your portfolio and spread out the amount of risk you're taking on. What's more, you can benefit from the fact that real estate investments have historically been less susceptible to major market swings. Real estate investments can be grouped into two broad categories - commercial and residential property - and each one has its pros and cons. If you're dipping your toes into real estate for the first time, it's important to understand how they differ.
May 06, 2016If you want to build a real estate empire without actually owning property, there are a couple of ways you can do it. You can go the crowdfunding route or put some cash into a real estate investment trust ( REIT). A REIT is a company that owns income-producing commercial properties, such as hotels, retail shopping centers and multifamily apartment buildings. A non-traded REIT has the potential to earn you high returns but there are a few things to keep in mind before diving in.
May 02, 2016Investing in real estate can be a good way to diversify your portfolio. And it can be particularly appealing to 20-somethings who are comfortable taking risks and who want to earn bigger returns. If you're in your 20s and you've toyed with the idea of becoming a landlord or putting money into a real estate investment trust, here are three key reasons to jump on the property bandwagon.
Aug 22, 2017Marriage comes with certain perks and having two heads is better than one when it comes to building wealth. In order to avoid disagreements, it's best to make sure that you and your partner are on the same page. After all, you'll need to make a team effort if you want to manage your wealth effectively. If that's one of your goals, it's a good idea to add the following tasks to your to-do list.
Apr 28, 2016Investing wisely requires an understanding of how the market works. But you also need a certain degree of confidence in your decision-making abilities. If you're not convinced that investing is a good way to reach your long-term goals or you're not sure whether you're capable of choosing solid investments, you could be building your portfolio on shaky ground.
Apr 19, 2016If you're going back to school, choosing your undergraduate major or just curious about the finance and accounting worlds, you may be wondering what the difference is between accounting and finance. The two fields aren't a world apart, but there are important differences that are worth knowing. Let us break it down for you.
Apr 13, 2016Investing isn't a one-size-fits-all proposition and there are lots of different approaches you can take. Value investors, for example, focus on undervalued companies while buy-and-hold investors buy securities and hang on to them over the long haul. Momentum investing is an entirely different animal and it's geared toward investors who prefer active to passive investments.
Mar 05, 2018If your portfolio is too large for you to handle on your own, it may be time to call in a professional. Wealth managers work with their clients to identify financial goals and map out a plan for achieving them that's built around choosing solid investments that'll grow over time. If you're ready to build serious wealth, here are some tips to help you choose the right wealth management firm.
Apr 11, 2016Spring has officially arrived and that means that it's time to start cleaning out the clutter and organizing the inside of your home. Doing the same thing with your finances is probably a good idea. If it's been a while since you took a look at how your stocks, bonds and other assets are performing, here are five ways to begin spring cleaning your investment portfolio.
Apr 04, 2016When you think about building a portfolio, stocks and bonds are probably the investments that come to mind. But there's more than one way to increase your net worth. Investing in physical assets is another way to pad your nest egg. While some investors have a passion for collecting antiques or classic works of art, others prefer to put their money into cars. The premise is simple - you find an old car, restore it and then sell it for a profit. But before you dive in, there are a few things you'll need to consider.
Mar 29, 2016There are a few different ways to build wealth in your 20s, 30s and beyond. Funneling money into tax-advantaged accounts such as 401(k)s and IRAs is a start, but you can only contribute so much every year. Once you hit the contribution limit, you could begin investing in a taxable brokerage account. Before you open one of these accounts, here are a few things to keep in mind.
Mar 22, 2016Inflation becomes a problem when average prices rise too fast, hurting consumers, businesses and investors. Deflation can wreak havoc on an economy as well. There's deflation when growth is slow and overall prices are on the decline. Yet another issue that we have to worry about is stagflation. We'll tell you what it is and the signs that indicate that it's approaching.
Mar 21, 2016If you have access to $10,000 or more, you don't want to squander it all on a bad investment. That's why it's important to think twice and weigh the pros and cons of going with one investment vehicle over another. For those of you who have the spare cash, here are some of the best ways to invest $10,000.
Mar 18, 2016If you're up on your investment vehicles, you probably know what an ETF is. It's short for exchange-traded fund and it's a security that can be bought and sold. ETFs trade like regular stocks but they track other assets, like bonds, stock market indexes or commodities. A leveraged ETF is a particular kind of ETF that uses debt or derivatives to boost the potential for returns - and losses. Here's what you should know about the leveraged ETF.
Jan 09, 2018Setting aside enough money to invest can be difficult. Financial instability can be a huge barrier to entry for aspiring investors and some investment accounts require a minimum deposit of $5,000 or more. If you don't have that much cash at your disposal, you can still start investing. Check out some easy ways to invest your money when you're on a shoestring budget.
Jan 09, 2018You don't have to be wealthy to become an investor. On the contrary, there are plenty of ways to invest small amounts of money. The key is finding investment opportunities that don't charge excessive fees that can reduce the size of your profits. If you're ready to give investing a shot, here are some of the best ways to invest $1,000 without taking huge risks.
Mar 18, 2016Inflation is usually a hot topic. It's something that the United States Federal Reserve monitors when trying to decide whether to hike the federal funds rate. Plus, it affects everything from business and investor decisions to the value of retirement savings. As you try to understand how inflation works and why it's an issue, it might help to understand what causes inflation.
Mar 14, 2016Investing requires quite a bit of time and effort. In order to choose the right mix of stocks, bonds and cash investments for your portfolio, you'll need to spend some time researching your options. And unless you plan on putting your investments on autopilot, you'll have to make time to rebalance your portfolio and ensure that fees aren't eating up your earnings. Depending on the investments you have, it might take time to see the kinds of returns that you're looking for. In the meantime, you might be able count on something known as compound interest.
Mar 14, 2016Investing in real estate can be a lucrative way to generate passive income or replace your day job altogether. Flipping houses can be a good way to get started. But it's not something you want to jump into without doing your homework. If you're about to embark on your first house flip, there are some critical errors that you'll need to avoid.
Mar 10, 2016Building wealth is something just about anyone can do. But unfortunately, there's no silver bullet for getting rich unless you're lucky enough to win the lottery. The internet is chock full of advice on how to effectively generate wealth, but it's best to be careful about who you listen to. Buying into any of these four myths could cost you when you're trying to grow your net worth.
Mar 14, 2016Investors who put their money into savings vehicles and other accounts hope to earn decent returns. Over time, interest adds up and how quickly it grows depends on the kind of interest you're working with. If you're trying to choose between an investment that comes with simple interest and another that has compounding interest, it helps to understand the difference between the two. If you're in that predicament, we've got everything you need to know about simple interest.
Mar 04, 2016Anyone who takes out a loan has to think about the cost of doing so. If you need to borrow money to finance a home purchase or a renovation, you'll want your interest rate to be as low as possible. From an investors' standpoint, however, higher interest rates present the opportunity to earn higher rates of return. Interest can be simple or it can compound over time. Don't understand the difference between simple and compound interest? We'll define both concepts and give plenty of examples.
Feb 02, 2017When it comes to buying a home or a property that you plan to rehab and resell, a fix and flip loan may be just what you need if you're not sitting on a huge pile of cash. Fix and flip loans work a little differently than conventional home loans. So if you're trying to get approved for this kind of financing, there are a few things you'll need to keep in mind before meeting with a lender.
Mar 03, 2016The stock market always has its ups and downs and once the value of stocks has fallen by 20% for a period of time, we've officially entered a bear market. When you see your portfolio shrinking, it's tempting to start selling off assets to minimize losses. But giving in to panic can make things worse. A bear market can be stressful for investors, but you can weather the storm if you make the right moves.
Feb 18, 2016As an investor, boosting your return rates is probably your primary concern. But no matter how carefully you've selected the stocks and bonds in your portfolio, it's a good idea to make some adjustments every once in a while to minimize the amount of risk you're taking on. Before you rearrange your assets, however, there are five important factors you'll need to consider.
Mar 22, 2017Thanks to their lower costs, exchange-traded funds (ETFs) are becoming a popular choice among investors. These funds, which track specific stock indexes or market sectors, look like any other mutual fund, but they trade like a stock. While there are certain advantages to ETFs, they're not the best option for every investor. Here's what you need to keep in mind before investing in ETFs through your 401(k).
Nov 06, 2017Investing is a science of sorts and it takes some effort to build a solid portfolio of income-generating assets. If you don't have time to study prospectuses or pore over the stock pages, you'll need to take a different route to build wealth. Fortunately, there are some investments that are geared toward people who want to maximize returns without getting too hands-on.
Feb 12, 2016In the 2015 film The Big Short, hedge fund manager Dr. Michael Burry realizes that the mortgage market is about to implode. By the end of the movie, Burry decides to shift his investment focus to one thing: water. If you're wondering why anyone would want to invest in water, the answer's pretty simple. Despite the fact that most of the Earth is made up of water, the vast majority of it isn't drinkable.
Feb 11, 2016When you're new to investing, figuring out which assets are the best fit for your portfolio can be tricky. Stocks, bonds and mutual funds are three broad categories of securities, and there are divisions in each one that newbie investors may not be familiar with. An index fund, for example, is a type of mutual fund, while an exchange-traded fund (ETF) is another kind of investment fund. ETFs and index funds are similar, but there are some major differences between the two that beginners need to be aware of.
Feb 01, 2016Investments can be great wealth building tools that you can use to multiply your savings. But unfortunately, all of the research and counseling in the world can’t necessarily guarantee a high rate of return. Whether you're an expert or a novice, it's important to keep in mind that there are certain uncontrollable factors that will always have an impact on your investments.
Jan 28, 2016New investors often focus on picking the right mix of funds to add to their portfolios based on their risk tolerance. While choosing the right investments is a big part of building wealth, it's not the only factor that matters. There are certain costs that go along with investing that you can't afford to overlook. Before diving in, it's a good idea to familiarize yourself with some of the fees you'll run into.