- FINRA vs. SEC: How Do They Differ?
When it comes to regulating the financial system of the United States, two prominent entities often come into the spotlight: FINRA and the SEC. While the former is responsible for overseeing the activities of brokerage firms and registered brokers, the latter has broader authority and scope to protect investors by regulating securities markets. When working… read more…
- How Securities Based Loans Work
A securities based loan, or margin loan, is line of credit secured by assets in your investment portfolio. These loans typically come with a relatively low interest rate, and can be processed and issued fairly quickly. However, by using your portfolio as collateral, these loans also depend on the value of your underlying assets. And… read more…
- How to Invest in Venture Capital
Venture capital is a segment of investing that focuses on new and emerging businesses. Investors, or venture capitalists, provide financing or other resources for startups or new businesses with the hopes for high returns. The potential for outsized gains has historically made venture capital (VC) very attractive. A good – or lucky – venture capital… read more…
- How to Open a Margin Account With Vanguard
Margin trading is the practice of buying securities with borrowed money. Like most brokers, Vanguard offers this feature to qualifying clients. No matter what broker you use, margin trading can be extremely risky. You may want to avoid this practice if you are an inexperienced investor, and especially if you do not have the assets… read more…
- Volatility and Risk in Investing: How Are They Related?
Investment volatility signifies the degree of change in the trading price of a financial instrument over time. Investment risk, on the flip side, relates to the potential for losses due to factors that affect the overall performance of the financial markets. So, if you prioritize steady returns, you might opt for investments that are less… read more…
- Dividend Investing: Is It Worth It?
Investing in dividends is a strategy that can yield significant benefits, particularly for those seeking a consistent source of income. Companies that pay dividends are often established entities with a history of generating profits. These profits are shared with shareholders in the form of dividends, providing them with regular income. This type of investment could… read more…
- How to Open a Margin Account With Schwab
Margin trading is the practice of investing with borrowed money. It is a high-risk strategy and should only be conducted by experienced investors, which is why most brokerages require you to apply for special permissions for a margin account. If you are interested in opening a margin account with Schwab as your broker, here’s what… read more…
- Top 10 Dividend Investing Books for 2023 and 2024
Many people feel overwhelmed with all the investing options that are available and how long to hold each asset. But the right books can help you gain key insight without having to lose money through trial-and-error investing. We’ve put together a list of some of the best books on dividend investing, in no particular order.… read more…
- Do REITs Offer Any Tax Advantages?
Real estate investment trusts (REITs) are a popular investment vehicle for those interested in the real estate market without the direct ownership of property. However, understanding the complex tax structure is crucial for investors to make money with REITs. A financial advisor can help you figure out how this investment could fit into your portfolio.… read more…
- Tax Differences of ETFs vs. Mutual Funds
While investing is a significant step towards achieving your financial goals, navigating the ins and outs requires a keen understanding of the options available in the market. One such common crossroad encountered by investors is the choice between Exchange-Traded Funds (ETFs) and Mutual Funds. Understanding the tax advantages of each might provide you with the… read more…
- How to Get Options Trading Permissions With Vanguard
Vanguard offers self-directed investors the ability to trade options, but you’ll first need special permission. Options provide unique opportunities to hedge risk or generate income, but they can be highly risky. For this reason, Vanguard requires brokerage account holders to complete applications providing details on employment, income and investing experience. After evaluating an application, Vanguard… read more…
- 10 Long-Term Investing Strategies to Consider
Building wealth typically doesn’t happen overnight. It requires diligence, planning and time. Adopting a long-term approach to investing can be a prudent choice for many individuals looking to grow their wealth. But with so many ways to implement a long-term investment strategy, it’s important to take a step back and consider the many tactics and… read more…
- What Is a Real Estate Partnership?
Imagine that two or more individuals decide to combine their resources and invest in real estate. This is the essence of a real estate partnership, a legal entity that is created to finance projects, divide risks and capitalize on the strengths and expertise of each partner. If you’re interested in investing with a real estate… read more…
- How to Buy I Bonds for a Child or Grandchild
I bonds are a type of U.S. government-issued savings bond. But many investors will tell you that they aren’t just another investment, they’re a gift that keeps on giving. These bonds adjust for inflation every six months, making them an ideal investment that grows over time to provide a stable financial backing for a child… read more…
- How Risky of an Investment Are Mutual Funds?
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds or other assets. Mutual funds have, indeed, become a common investment choice for many individuals seeking to grow their wealth without the work. However, like any investment, they come with their own set of risks.… read more…
- 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…