- What Are Variable Annuity Subaccounts?
Variable annuities let people to put money into mutual funds, including stock funds, bond funds and money market funds, so the principal has the potential to grow but still enjoy certain tax advantages. Each fund in a variable annuity is called a subaccount. Here’s what you need to know about variable annuity subaccounts, their nature,… read more…
- How Much Interest Does $4 Million Earn Per Year?
Putting away $4 million for retirement is a great accomplishment, and such an amount has the potential to provide significant interest. Predicting how much interest your nest egg earns will help you decide if it’s enough to support your lifestyle. But the interest earned will vary depending on the type of investments you choose. Here are… read more…
- How to Invest $200K and Turn It Into $1 Million
If you’re preparing to invest $200,000, or an amount in that range, with the goal of growing it to $1 million, you’re in a strong position to build significant long-term wealth. Reaching a seven-figure portfolio is achievable with the right mix of planning, discipline and market insight. We’ll review some key strategies, investment options and… read more…
- How Does Inflation Affect Stocks?
After more than 10 years of low inflation, we have seen a surge in inflation. A myriad of factors has converged to trigger inflation, including pandemic-related lockdowns, a massive monetary and fiscal stimulus and supply chain disruptions. Here’s an overview of how inflation affects equities and what kind of investing style does best during investing. Consider… read more…
- How to Profit From Inflation
From buying groceries to gasoline to automobiles, inflation has hammered Americans’ purchasing power. In fact, the most well-known metric of inflation has soared to a four-decade high. A myriad of factors has come together to increase inflation in 2021 and… read more…
- How to Boost Your Portfolio’s ‘Tax Alpha’
The tax efficiency of your portfolio is a sometimes overlooked consideration in financial planning and in assessing your investment’s total return. But not paying any more than you need to in taxes can have an outsize effect on your eventual… read more…
- How Do I Sell Shares in a Private Company?
While it’s not possible for individual investors to buy shares in a private company, it is possible to own them. Whether it’s through stock options or accredited investing, if you own shares in a private company, you can sell them. In most cases, the easiest option is to sell your shares of stock back to… read more…
- How to Invest in Private Companies
Most individual investors cannot directly invest in private companies due to internal guardrails that limit decision-making to select individuals. Only institutional and accredited investors are allowed to be direct investors in non-public private companies, but you can invest in private companies indirectly via ETFs and mutual funds. . Do you have questions about managing your… read more…
- Public vs. Private Companies: Key Differences
Though similar in many respects, private and public companies differ in significant ways. Private companies only have to follow laws and statutes that apply to everyone else. Publicly traded companies, on the other hand, have to obey both generally applicable… read more…
- Institutional Investors vs. Retail Investors
Whether you’re a working parent focused on keeping up your 401(k) contributions or starting your first job out of college without giving much thought to retirement, you may not be aware of who trades on the market and how your small slice of securities fits in with the rest of the investing activity. The stock… read more…
- Ways to Survive a Market Downturn
Current market volatility has many investors wondering how to minimize losses and find new opportunities. But whether you’re worrying over your IRA or alternative investments, there are several strategies you can implement to survive a market downturn. So, to navigate the current market conditions with ease, here are some ways to keep calm and invest on. A financial advisor can… read more…
- How Much Interest Would $10 Million Earn?
As you build a nest egg, you need to understand how much income you can expect it to produce. We explore how much interest $10 million could earn. The answer is going to vary based on where you stash your savings… read more…
- How to Profit from Investing in 18-Hour Cities
The term “18-hour city” describes a medium-sized urban area with the potential to become a large metropolis in the ranks of New York, San Francisco, Chicago and similar “24-hour cities.” Some real estate investors see opportunities to achieve above-average returns by acquiring properties in 18-hour cities, where prices are still moderate but, because of their… read more…
- What Is the Nominal Rate of Return?
The nominal rate of return shows the yield of an investment over time without accounting for negative elements such as inflation or taxes. By calculating the nominal rate of return, you can compare the performance of your assets easily, regardless of the inflation rate or differing spans of time for each investment. By obtaining a bird’s-eye view of… read more…
- How Much Real Estate Should Be in Your Portfolio?
When diversifying your portfolio with alternative assets like real estate, it’s common to wonder how much real estate should be in your portfolio. While many people own the home they live in, generally that’s not considered a real estate investment.… read more…
- Should You Save for Retirement or Invest in Real Estate?
Most Americans have some form of retirement savings, typically held in a tax-advantaged retirement account like a 401(k). At the same time, 65% of American households own their homes. That begs the question: should you save for retirement or invest in real estate? And, if you are saving up for retirement, should you put your… read more…
- Reporting C Corporation Dividends to Shareholders
When C corporations pay dividends to shareholders, the transactions get reported to both the shareholder and the Internal Revenue Service using Form 1099-DIV. This form gives the amount of the dividend as well as the classification of the dividend, which is important for determining how it will be taxed. Here’s what you need to know… read more…
- What Is a Hybrid REIT?
Investors often look to real estate to diversify their portfolios and mitigate risk. However, many investors don’t want the responsibility or risk of owning individual real estate properties. REITs are a way to buy real estate to get the benefits of ownership without the headaches of managing properties. There are many different types of REITs… read more…
- Can a Public Company Go Private?
In recent months, the news has been full of speculation about Elon Musk potentially purchasing Twitter and making it a private company, leading some people to wonder exactly how that works. Firstly – yes, a publicly traded company can, in fact, become privately held again. While the application of this can be fairly complicated (as… read more…
- How to Make $1,000 a Month in Dividends
Dividend investing offers a powerful strategy for building wealth and generating passive income over time. By purchasing shares in companies that regularly distribute a portion of their profits to shareholders, investors can create a steady stream of cash flow without selling their underlying assets. This approach appeals to those seeking financial stability and long-term growth,… read more…
- Individual vs. Joint Brokerage Accounts
When it comes to investing, you can go it alone or with a partner. That’s true no matter what form your assets take, including brokerage accounts. With an individual brokerage account, you’re the only person with any rights to the portfolio. Only you can make decisions about the account and its contents belong entirely to you.… read more…
- What Is Dividend Recapitalization?
Publicly traded companies sometimes issue quarterly dividends to reward investors. In contrast, private equity firms sometimes issue special dividends. They may do this by raising capital through a dividend recapitalization. There are several reasons a company may pursue a dividend recapitalization,… read more…
- Family Office vs. Hedge Fund: Which Is Better?
Family offices and hedge funds are two types of wealth management tools for high-net-worth investors and families. These platforms go beyond traditional financial advisors and provide additional services and opportunities that generally aren’t available to the average investor. In this article, we’ll define what they are, the differences between them and how to choose between… read more…
- Hedge Funds vs. Investment Banks: What’s the Difference?
For many people, hedge funds and investment banks are both terms that are synonymous with rich people, but the differences between the two are significant. A hedge fund manages a highly diverse investment portfolio that aims to generate outsized returns. They invest accordingly, then sell shares in their portfolios to third parties. They make money off… read more…
- Internally Managed vs. Externally Managed REIT
Real estate investments can offer you different opportunities. Depending on your investment preferences and goals, you may pick one type of REIT over another. Internally managed REITS have managers who make investment decisions for clients, while externally managed REITS hire third-party management. Let’s compare the advantages and disadvantages for your portfolio. A financial advisor can… read more…