- How a Bond Tent Can Help Your Retirement Strategy
Many retirees face the greatest risk in the years leading up immediately to retirement. They haven’t yet begun collecting some of the more stable benefits like Social Security, which can help protect their portfolio against market downturns. Also, they no longer have many years ahead to rebuild their portfolio from losses. And if a recession… read more…
- How to Sell Restricted Stock Units (RSUs)
Restricted stock units (RSUs) are a form of equity compensation that some companies offer to their employees. Through this benefit, you receive shares of company stock subject to certain terms and conditions. Once these conditions are met, your shares vest. You get full ownership of these shares and are free to sell them on any… read more…
- Stock Advisor Websites for Investors
Stock advisor websites provide individual investors with useful tools, research and guidance to build their wealth. Many investors count on these handy online sources for ideas and information on markets and individual securities. These sites offer stock screeners to identify opportunities, articles analyzing specific companies, model portfolios showing how to construct a diversified mix of… read more…
- 6 Stock Option Trading Strategies to Consider
Options give investors ways to profit whether stocks rise, fall or hold steady. But they also come with their own complexities and pitfalls. Options traders have developed an expansive set of strategies that aim to help them hedge against risk, generate income or profit from speculation while also not exposing them to undue risk. Strategies… read more…
- How to Find Rental Properties in Different Markets
Investing in rental properties can provide attractive returns and diversification for ordinary investors. But finding good rental real estate deals in other markets poses challenges. When location is a prime factor in determining whether a property is attractive, an investor based far away has some built-in disadvantages. A financial advisor can explain the basics of… read more…
- How to Value a Startup for Investing
Startup opportunities are everywhere. Far from the common vision of a tech company with some new string of code, the startup world is filled with sandwich-slingers, cardboard salesmen and trial attorneys looking to get off the ground. And these founders are always looking for money, because the one thing an entrepreneur doesn’t typically have is cash. And… read more…
- What Is Constant Proportion Portfolio Insurance (CPPI)?
Portfolio insurance strategies aim to limit losses in investment portfolios while still capturing some upside. Constant proportion portfolio insurance (CPPI) is a dynamic approach that adjusts asset allocation between risky and stable assets based on portfolio value. When values go down, it moves more money into safer places so your total portfolio doesn’t fall too… read more…
- What Is Negative Carry?
Negative carry in investing refers to a situation where the cost of holding an investment, including expenses, interest, or financing charges, exceeds the income or return generated from that investment. Calculating this can help you avoid costly investment mistakes and identify opportunities to take advantage of potential increases in asset value when borrowing money to… read more…
- Understanding Gap Trading Strategies
Gap trading is a common stock trading term, referring to a strategy that aims to take advantage of the price difference or “gap” between the last closing price of a financial asset and the next opening price to capitalize on potential short-term fluctuations in the market. Let’s break down how you might be able to… read more…
- How to Trade Options With Schwab
If you would like to trade options, Schwab is a good choice. Since acquiring TD Ameritrade, Schwab has integrated the popular Thinkorswim trading platform into their own online brokerage. Thinkorswim is particularly useful for complicated, highly technical trading, which is exactly what options traders need. So, if you’re a Schwab customer, here’s what you should… read more…
- What’s the Average Return on an All-Bond Portfolio?
Like all markets, bonds fluctuate. Your returns will be based on what you hold, when you buy it, tax treatment and other factors. While many choose to diversify their portfolios across stocks, bonds and other assets, an all-bond portfolio may allow for more predictability and income generation. You can also diversify an all-bond portfolio with different… read more…
- How to Open a Margin Account With Fidelity
Margin accounts allow investors to borrow against their portfolios to buy more securities. Margin can turbocharge your returns when stocks go up, as profits are made on the full position size including the borrowed money. However, trading stock on borrowed money also has serious risks, so margin privileges are reserved for active and experienced self-directed… read more…
- Popular Low-Risk Investments for Retirees
Many retirees seek to preserve their savings while generating steady income, which leads them to consider the safest investments for retirement. Options such as certificates of deposit (CDs), Treasury securities, annuities and certain bond funds can provide predictable returns with relatively low exposure to market swings. However, slightly riskier assets like dividend stocks and preferred… read more…
- 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…