- How to Find the Right Asset Allocation for Your Needs
Asset allocation means the mix or range of investments you hold in a portfolio. It’s one of the most basic investing terms to know and also one of the most important. Choosing the best asset allocation for your needs can make a difference when it comes to achieving your long-term financial goals. There are different… read more…
- Bitcoin vs. Gold: Which Should You Buy?
The COVID-19 recession may have gotten you thinking about how to preserve your wealth. Many investors consider store-of-value assets like Bitcoin and gold as ways to preserve wealth. For example, gold has thousands of years behind it as a universally… read more…
- There’s a New Way to Bet on Bitcoin
There’s a new way to invest in the world’s largest cryptocurrency — kind of. ProShares launched its Bitcoin exchange-traded fund on Tuesday, the nation’s first ETF linked to the $1.1 trillion cryptocurrency. The fund, known as the Bitcoin Strategy ETF, doesn’t directly invest in the cryptocurrency, though. Instead, it deals in Bitcoin futures traded on… read more…
- You Can’t Ignore Inflation Any Longer: Here’s How to Beat It
Inflation is getting harder to ignore. What monetary authorities have been dismissing for months as nothing more than the economic equivalent of a passing rain shower is starting to feel like a soaker. In August, the head of the U.S.… read more…
- Women Outperform Men in Investing: Here’s Why
When it comes to the world of finance, there’s no shortage of male presence. There are far more male CEOs of Fortune 500 companies than there are females, and the financial industry is dominated by men up and down the chain of command. For some, this sends a signal that men must be better at… read more…
- What the Fed’s New Inflation Worries Mean for Investors
The Federal Reserve may be losing confidence in its long-standing prediction that current inflation is temporary. Or at least the U.S. central bank appears to be bracing for “temporary” to last longer than earlier thought. And if that newfound caution… read more…
- What Does Diamond Hands Mean?
Diamond hands is a term that has been popularized by the cryptocurrency community. In a nutshell, it means holding on to an investment asset despite volatility and risks. Rather than running for a haven when an asset is taking a beating or appears poised to sustain serious damage, an investor with diamond hands battens down… read more…
- What the Breakeven Inflation Rate Tells Investors
Investing is about more than just saving enough money for retirement. It requires investors to think about inflation, especially when it comes to a retirement portfolio. Without factoring in the effects of inflation over the years to come, those savings might not be enough to last. The breakeven inflation rate is a predictive measurement that helps… read more…
- REITs vs. Stocks: Investment Guide
When building your investment portfolio, understanding the differences between REITs and stocks can significantly impact your financial future. Real Estate Investment Trusts (REITs) offer investors a way to add real estate to their portfolios without directly purchasing property, providing steady income through dividends and potential appreciation. Traditional stocks, meanwhile, represent ownership in companies across various… read more…
- Fee-Based Advisors vs. Commission-Only Advisors
When working with a financial advisor, one of the most important questions to ask is how exactly the advisor will be making money. Broadly speaking, there are two ways financial advisors get paid: commissions and fees. Commissions are fees paid by the client for completing a discrete transaction, such as buying shares of a mutual… read more…
- What Are Non-Statutory Stock Options?
Stock options are a way to reward employees with increased compensation. This also encourages employees to think about themselves as stakeholders in the company’s success and act accordingly. One form of stock options is non-statutory stock options (NSOs), which are… read more…
- Exercising Stock Options
Stock options have gained significant traction as a preferred form of employee compensation in recent years, offering a unique way to align employee interests with company performance. These options grant employees the right to purchase company shares at a predetermined price, often referred to as the “strike price,” at a future date. By tying compensation… read more…
- Risk-On in the Stock Market: Investment Guide
Stock market investing is often about following trends. Traders, investors and analysts often try to gauge investor sentiment to understand which direction the winds are blowing so that they can profit from them. A “risk-on” environment indicates that investors are… read more…
- Beginner’s Guide for Retail Investors
There are so many choices, acronyms and tax codes in the investing world that many people get intimated and never start. While there are complex investments available, beginning to invest doesn’t have to be difficult. In this beginner’s guide to investing, we’ll cover the basics to help you get started with your first investment. Additionally,… read more…
- What Happens to Options When a Stock Splits?
An investor who owns call options on a stock that splits will wind up owning more options on the stock. However, having a larger number of options won’t increase the value of the options. That’s because the price of the underlying stock will be decreased when the stock splits. The change in stock price is… read more…
- Understanding How the Secondary Market Works
The secondary market is where investors buy and sell previously issued securities. It is important to the economy because it promotes capital formation and provides for price discovery based on the economic laws of supply and demand. In addition, it enhances liquidity and, because it is heavily regulated, gives participants a measure of assurance that… read more…
- Margin Account vs. Cash Account: Key Differences
Brokerage accounts come in two main types: cash accounts and margin accounts, each catering to different investment strategies and risk appetites. In a cash account, investors are required to pay the full cost of any securities purchased, typically within a settlement period of three business days. Margin accounts, in contrast, allow investors to borrow funds… read more…
- Understanding How Special Dividends Work
Corporations that pay dividends to stockholders usually make the payouts on a regular schedule, such as annually or quarterly. However, they sometimes opt for special dividends. These non-recurring cash dividends are usually much larger than the regular recurring dividends. Companies may use them to reward loyal shareholders when profits are unusually good, to distribute proceeds… read more…
- Coinbase vs. Binance: Which Crypto Platform to Use?
Coinbase and Binance are two of the largest cryptocurrency markets online today. Coinbase is one of the oldest and most well-established markets. It was founded in 2012 and currently trades publicly on the NASDAQ exchange. Binance was founded in 2017… read more…
- Ways to Invest and Use $5 Million
$5 million may sound like a vast sum, but without proper financial planning, it can deplete faster than expected. However, with smart investment strategies, you can make that wealth last for decades—potentially securing your financial future and allowing you to retire comfortably. Regardless of your current age, disciplined investing and prudent money management can help… read more…
- Blockchain Real Estate – Investment Guide
Blockchain is a diverse digital technology used by cryptocurrencies like Bitcoin and Etherum. The adoption of blockchain technology has significantly impacted the financial services industry. Due to the decentralization of the blockchain platform, transactions such as mortgage loans can be made swiftly, seamlessly and with complete transparency. Blockchain real estate applications have also proven to… read more…
- American vs. European Options: Key Differences
Trading options, which are a type of derivative security, may appeal to investors who are comfortable taking on more risk for the potential to earn higher returns. It’s helpful to understand certain options trading terminology before diving in, including the difference between American and European style options. The two share some similarities but they differ… read more…
- Vanguard vs. Fidelity vs. Schwab
It is no secret that Vanguard, Fidelity and Charles Schwab are three of the most popular and well-known brokerage firms. These financial institutions are also some of the largest, offering a wide range of products and services.
- What Are Discount Bonds?
Investors often purchase bonds for recurring income and as a hedge against stock market volatility. Most bonds are initially sold “at par,” which means that they’re sold at face value. After the original sale, the value of bonds fluctuates based on interest rates, the credit rating of the issuer and economic trends that affect interest… read more…
- Stakeholder vs. Shareholder: Key Differences
Many people have a vested interest in the success of a company. If you own a portion of it, you want it to succeed because then you get a cut of the profits. Folk like that are called “shareholders.” If… read more…