Investing

July 22, 2024The gross expense ratio (GER) is a metric used by investors to assess the total annual cost of managing a mutual fund or exchange-traded fund (ETF). This ratio is expressed as a percentage of the fund’s average net assets, and includes management fees, administrative costs and other operational expenses. A financial advisor can help you… read more…

July 22, 2024A qualified dividend meets specific IRS requirements, allowing it to be taxed at the lower capital gains rates rather than the higher ordinary income rates. To qualify, the dividend must be paid by a U.S. corporation or a qualified foreign entity. The investor must also hold the stock for a minimum holding period. By meeting… read more…

July 19, 2024Financial planning is important for real estate investors to maximize returns, manage risks and maintain long-term financial stability. Understanding cash flow, for example, is one important piece of financial planning, as real estate investors should have enough rental income to cover mortgage payments, taxes and maintenance costs. Meanwhile, diversification can also help mitigate risk, while… read more…

July 19, 2024Depreciation allows property owners to deduct the costs of buying and improving a property over its useful life. In turn, this reduces taxable income, offering significant tax benefits. To take advantage of these benefits, however, it’s necessary to know how to calculate depreciation on rental properties, which may involve consulting a financial advisor who focuses on… read more…

July 19, 2024Managing a rental property independently can be both rewarding and challenging. But managing properties is more than finding tenants and collecting rent. Effective property management also involves handling tenant disputes professionally and enforcing lease agreements consistently. You may want to work with a financial advisor to help you determine which types of investments are a… read more…

July 19, 2024A commercial real estate investment strategy involves purchasing, managing and leasing commercial properties to generate rental income, appreciate asset value and achieve long-term financial returns. Each strategy requires careful consideration of risk tolerance, investment goals and market conditions. If you’re thinking about investing in commercial real estate, a financial advisor can help you analyze different… read more…

July 19, 2024A bond fund is an investment pool that primarily consists of bonds and other debt securities. Investors in bond funds are essentially lending their money to entities like governments, municipalities and corporations, which in turn promise to pay back the principal along with interest. Unlike individual bonds, bond funds offer the advantage of diversification, reducing… read more…

July 19, 2024A bond yield spread represents the difference in yields between two different bonds, typically of varying credit qualities or maturities. This spread is an important indicator for investors, providing insights into the risks and returns of different bonds. For example, a wider spread often signals higher risk associated with a lower credit quality bond when… read more…

July 18, 2024Real estate investors use different strategies with specific risk and return profiles. Core investing focuses on stable, income-generating properties in prime locations. Core Plus investing is similar but involves slightly higher risk for potentially greater returns. Value-Add investing involves acquiring properties that need significant renovations or operational improvements. Opportunistic investing is the most speculative, targeting… read more…

July 18, 2024AI-powered tools can provide predictive analytics, helping investors forecast market changes and make informed decisions. Additionally, AI can streamline property management, optimizing rental pricing and maintenance schedules to maximize returns. From virtual property tours to automated transaction processes, AI enhances efficiency and reduces costs. Embracing AI technology in real estate investments not only can offer… read more…

July 18, 2024Digital real estate investing has emerged as a new opportunity for those looking to make money in real estate. As the internet continues to grow, so does the value of virtual properties, including domain names, websites and digital storefronts. This form of investing mirrors traditional real estate in many ways, requiring research, strategic purchasing and… read more…

July 18, 2024From rental income to property appreciation, there are many ways to make money in real estate. The real estate market offers diverse opportunities, including residential, commercial and industrial properties. However, each type of real estate investment has unique advantages and challenges, making it essential to think through your financial goals and risk tolerance before making any decisions. There… read more…

July 16, 2024Rent-to-own is a popular option for individuals who want to move into a home while working towards ownership. This arrangement allows renters to lease a property with the opportunity to buy it at the end of a predetermined period. During this lease term, a portion of the monthly rent payments may contribute towards the home’s… read more…

July 12, 2024Residual income refers to the amount of disposable income left after paying all personal debts and obligations. In corporate finance, residual income is the profit remaining after accounting for the cost of capital. This is different than passive income, which refers to income that is earned without any active involvement. Whether you’re retired or in… read more…

July 12, 2024Compound interest is a transformative financial concept that can dramatically increase the growth potential of your investments. By earning interest on both your initial principal and the interest that accumulates over time, your money can grow at an accelerating rate. Compound interest, which often plays a pivotal role in building wealth, highlights the importance of… read more…

July 12, 2024Real estate investment can be a lucrative, but costly, endeavor. This is why many investors seek strategies that minimize risk while still offering growth potential. These low-risk real estate investing strategies include buying and selling rental properties, real estate investment trusts (REITs),triple-net leases, and more. By focusing on these methods, or discussing them with a… read more…

July 12, 2024Floating rate funds primarily invest in financial instruments with variable interest rates, such as loans and bonds. Unlike fixed-rate investments, the interest rates of the assets in floating rate funds adjust periodically, typically in response to changes in market interest rates. This characteristic makes floating rate funds an attractive option for investors seeking to reduce… read more…

July 12, 2024Flipping houses can be a profitable venture — even if you lack the funds to make a direct purchase. Those wondering how to start flipping houses without using their own money have several strategies to explore. Partnering with investors, using hard money loans, or engaging in wholesaling can provide the necessary financial backing without the… read more…

July 12, 2024To invest in I Bonds, you need to purchase them directly from the U.S. Treasury through the TreasuryDirect website. The minimum purchase amount is $25, and individuals can buy up to $10,000 worth of electronic I Bonds per calendar year. Additionally, you can use your federal tax refund to buy up to $5,000 in paper… read more…

July 12, 2024Bond yield represents the return investors can expect from holding a bond. Essentially, the yield is the interest earned on a bond, expressed as an annual percentage of the bond’s face value. The yield is influenced by several factors, including the bond’s coupon rate, its price and the time remaining until maturity. A bond’s yield… read more…

July 12, 2024Exchange-traded funds (ETFs) and mutual funds are both popular investment vehicles, but they differ significantly in structure and trading flexibility. ETFs can be traded on stock exchanges throughout the day, similar to individual stocks, allowing investors to buy and sell at market prices. This intraday trading capability provides greater liquidity and often lower expense ratios… read more…

July 11, 2024The continuous compound interest formula is a mathematical tool used in finance and economics. Unlike traditional compound interest methods, which calculate interest at predetermined intervals, continuous compounding assumes that interest is being added an infinite number of times per year. This approach provides a precise model for scenarios involving constant growth, and is particularly valuable… read more…

July 11, 2024Compound interest can help your investments to grow exponentially over time. Unlike simple interest, which is calculated solely on the principal amount, compound interest accrues on both the initial principal and the interest that’s accumulated over previous periods. This process of earning “interest on interest” leads to significantly larger returns, particularly when investments are held… read more…

July 11, 2024Foreign direct investment (FDI) involves a company or individual from one country making a significant investment in a business located in another country, often through ownership or a controlling stake in a company, though there are other methods, as well. This cross-border investment not only fosters economic development, but also the exchange of resources, technology… read more…

July 11, 2024Making money in real estate involves several key strategies that cater to different investor goals and risk appetites. From buying and renting out properties to flipping houses or even investing in a real estate investment trust (REIT), these are common ways to make money. Each of these strategies requires thorough research and a good understanding… read more…