Fixed income investing traditionally has been categorized as “safer” when compared to investing in equities. Why is that? Purchasing high quality debt tends to generate less volatility in returns when compared to buying companies. With less up/down in price, the...
Every investor should evaluate their cash reserves before selecting an investment/s. Integrating your cash and investments together into a financial plan can be as simple or complex as your life requires. Let’s look at three different investors at varies life...
There’s a sea of information for investors to sort through today. Our opinions and experiences shape how we handle money. As ideas become organized in our head, we establish a foundation from where decisions can be made. Over time, we manage new information and...
Regardless of your age, cash flow determines your choices. Everyday decisions such as what we spend, where we live, and the destination of our next vacation are all cash flow based. Cash flow arrives from various sources including full-time employment, a side...
Let’s clear up the confusion between risk and volatility when investing. Risks are real and consistently evolving. This requires an investor to periodically re-assess their exposure and comfort level. Examples include liquidity risk which is failing to set aside...
Tax diversification plays a key role in retiring successfully and staying successfully retired. Investors who embrace this approach while accumulating their wealth will have more choices at retirement. A challenge all investors face is the ever-changing tax...
In two weeks, a new year begins. What financial strategies can assist investors in getting closer to what they want? Knowing what you want to accomplish and when before investing a dollar is valuable. The difficulty is many don’t have the answers they need when...
Company values contracting, expanding, and contracting again can test the patience of the best investors. This up/down movement in prices is unsettling, especially if you allow account values to define your progress as an investor. If you haven’t created or updated...
If investing was a board game, it may be best categorized as Chutes & Ladders. I loved this game growing up as a kid, the premise is simple. Get to the top of the board by climbing ladders and progressing forward on each square, avoid the chutes if possible. I...
It’s valuable to take a minute and reflect on how far the S&P 500 index has traveled over the years. Annual returns dating back to 1928 may be viewed here. Depending on how long you’ve been investing, some of these dates may be familiar. We’ve witnessed...
How does one remain patient and avoid reacting as the markets zig and zag? It’s human nature to want to take charge and influence as many outcomes as possible. This is especially true (and magnified) when it comes to managing our investments. We wish to be right in...
These are challenging times to be an investor. Making financial decisions on what investments to purchase may include reviewing potential returns. It’s natural to seek out returns that may increase your portfolio overtime. A present-day example, such as I bonds,...