Bonds are an essential part of any diversified portfolio. Although we generally don’t expect the same high returns with bonds as we do with stocks, there is much less risk. Bond funds can be a great diversification tool since they have low correlation with stock funds. Essentially, that means that the health of the stock […]
Using a Stop Order to Lock in Capital Gains
I know I was extremely lucky to pick a winner in my lastest stock trade, but boy does it feel good to finally be right. American Airlines(AAMRQ) is up 1,029.47%(as of 3/24/13) since the end of 2011 when I bought it. I’d say my return has been pretty good . Even though there was substantial […]
Get a Guaranteed 4% Return on $5,000 thru Sharebuilder
I’m on a quest for higher returns(similar to TFB’s double bond movement) and so far I’ve explored peer to peer lending, binary options & REIT’s to name just a few. There seems to be a ton of ways to earn above average returns but unfortunately, most of them also come with additional risk. I’m looking […]
I Finally Guessed Right In My Trading Account
Even though I generally recommend investing in index funds and low cost mutual funds, from time to time I do trade individual stocks. Don’t get me wrong, I usually end up losing money, but I never invest more than 1 or 2% of my total net worth in one stock and the total value of […]
My First Default With Lending Club
With today’s pitiful interest rates, it’s hard to sit there and invest your money in CD’s that are returning 1 or 2 percent. So if you’ve been searching for alternative investments you may already know about Lending Club. But if you’re new to the peer to peer lending scene, you can read my first review […]
An Argument for the Social Security Program to Continue
There are very few programs in the US which are understood less than the Social Security program. You’ll hear a lot of mis-information about Social Security. “You’ll never get what you put into it!” “I’ll be lucky to get anything.” So on and so forth. The mis-information you hear contributes to giving the Social Security […]
Reader Question on Investing for Beginners: Betterment.com Review
Today, we have a reader question about the site Betterment.com. If you have a question for me, feel free to send me an e-mail. Reader TA writes in: I’m wondering if you’ve heard anything about the Betterment.com site? I’m interested in learning/starting how to invest, and this site looks like a good place to start […]
Be Wary of Frontloading Your 401(k) Contribution and Losing Company Match
January is a great time to re-assess your retirement accounts. It’s important to review your 401k contribution and at least consider re-balancing your accounts at the beginning of every year. You’ve probably made a couple New Year’s resolutions so why not add this one to your list? 2013 will be the first official year I’m able […]
Guest Post: What to Look for in an Online Brokerage
Happy Monday to everyone. Today I’m glad to bring you a great guest post from my friend John at Frugal Rules. Please take a moment to visit his site if you enjoy the article! We’ve all seen the commercials for online brokerages; one has a green line, another wants you to talk to someone named […]
Reader Question: Is a 5% Return from a Secondary Market Annuity Too Good to Be True?
Reader PR writes in: “Harry, what are your thoughts on secondary market annuities? I’m looking for some higher returns for my savings. Some of the SMA’s I’m looking at right now are returning 4 or 5%. It seems like they are a pretty safe investment, but maybe I’m missing something.” I’ll be honest, when I first […]
Why The Average Investor Should Choose Index Funds Over Picking Individual Stocks
When it comes to picking stocks for a portfolio, the average investor is at a big disadvantage. Now I’m not talking about investing in mutual funds, which can have big ol’ expense ratios baked into them. I’m talking about good ‘old fashioned stock picking’, where you research companies, pick out which ones you like and […]
September CPI up 0.6%: I Bonds Rate Announced
Tuesday was a big day at the bureau of labor statistics; they released the news that we’ve all been waiting for. The Consumer Price Index for All Urban Consumers(CPI-U) increased 0.6 %! Ok I have no idea what that actually means(ok maybe I do, no one should care though), but I do know how it […]
Reader Question: Investing in Real Estate Without a Down Payment, What is an REIT?
Here’s a question from a reader named Bilbo Baggins, not sure if this his real name or not 🙂 “I’m fully convinced its a great time to buy property. However, I am not ready to make that kind of commitment and am looking for investments that will reap the same kind of passive income. Something […]
Investing in I Bonds: An Intro to I Bonds for Young Investors
For an update on I bonds rates as of(10/18/12), please see: November 2012 I bonds rates are announced: 1.76%. Believe it or not, the money in your savings and checking accounts is actually losing money. It doesn’t even matter what bank you have. Whether you bank online, or brick and mortar; they’re all losing […]
Part 3: How To Rebalance Your Retirement Accounts
[This is the third article in a three part series about re-balancing, the first article covered why to rebalance and the second covered when to rebalance your retirement accounts] Even though asset allocation will determine over 90% of your returns, it’s important to periodically rebalance your retirement accounts. I’ve shown why rebalancing will reduce your […]
Part 2: When to Rebalance Your Retirement Accounts
[This is the second article in a three part series about re-balancing, the first article covered why to rebalance and the last article will cover how to rebalance your retirement accounts] A year in the life of the stock market can be brutal. Daily swings up and down are unpredictable at best, but we’ve seen […]
Part 1: Why Rebalance Your Retirement Accounts
[This is the first article in a three part series about re-balancing, the next two articles will cover when to rebalance and how to rebalance your retirement accounts] A crucial part to a successful investment portfolio requires that you occasionally rebalance your portfolio. Due to the volatility of the market, the asset allocation you select might change […]
Asset Allocation Guide: Why to Invest in International Index Funds
If you followed the market from 2000-2009, you’ll know that US stocks got hammered. Investing in international stocks wouldn’t have saved you from a period like that, but it could have helped. International stocks provide some much needed diversification and tend to reduce your portfolio’s overall volatility. In fact, since international funds make up 60% […]
Get Rich Investing in Human Capital
Instead of talking about stock or real estate investments today, I’ll be diving into an often forgotten investment. Human capital is the knowledge, skills or health that you have acquired in your lifetime. Most people think of capital as a CD account, retirement savings or property. But tangible forms of capital aren’t the only kinds […]
My Tax Efficient Investing Plan
If the Mayans are wrong and Dec 21, 2012 doesn’t bring the end of the world, taxmageddon is still headed our way in 2013. Income taxes are slated to go up for every single tax-paying American unless congress and Obama act. Regardless of whether you’re for or against the proposed tax increase, it’s causing a lot of […]