- How to Form an LLC for Real Estate Investing
A limited liability company, or LLC, is one of the most common corporate forms in American business. It is relatively easy to establish and allows individuals or small groups to do business under a corporate name. Investment LLCs, in which you… read more…
- Why Is Diversification of Investments Important?
Investing money in the stock market is a proven way to grow wealth, but it’s not without risk. Diversification is a strategy that aims to manage risk while still allowing you to realize your desired rate of return. So why is diversification of investments important? Without it, you may be taking on too much –… read more…
- Conservative Investments
Conservative investments can be attractive for people who want to generate income or minimize their exposure to stock market volatility. An investor’s who getting closer to retirement, for example, may begin to shift their portfolio toward investments that have a… read more…
- A Guide to Investing in Dividend Mutual Funds
Investors looking for recurring income should consider investments that offer dividends. Dividend investments offer consistent income, an opportunity for asset appreciation and the potential for favorable tax treatment. Dividend mutual funds invest in stocks that pay investors regular dividends. Let’s break down what they are and how to invest in them. A financial advisor could help… read more…
- Are Robo-Advisors Worth It?
Since the first robo-advisor launched in 2008, these automated investment management services have grown enormously. Thanks to low cost, low minimums and always-on convenience, robo-advisors have proven highly attractive especially to new investors with modest assets. Robo-advisors have significant limitations,… read more…
- Robo Advisor Fees: How Much It Costs
Robo-advisors cost less than traditional financial advisors. These electronic advisors typically impose annual fees of around 0.5% of assets under management, compared with 1% to 2% charged by many human advisors. Plus, robo-advisors usually don’t levy other costs, such as… read more…
- What Is the Relationship Between Risk and Return?
Risk and return are, effectively, two sides of the same coin. In an efficient market, higher risks correlate with stronger potential returns. At the same time, lower returns correlate with safer (lower risk) investments. Together these concepts define how investors choose their assets in the marketplace, and they define how investors set asset prices. Let’s… read more…
- What Does a Portfolio Manager Do?
Portfolio managers are financial professionals who help their clients build wealth. The goal of a portfolio manager is to satisfy the investment goals of their clients. To do this, they must take into consideration a client’s time horizons, risk preferences, return expectations and market conditions. Let’s break down how a portfolio manager could help you grow… read more…
- Understanding How Fixed-Income ETFs Work
Many investors use fixed-income investments to balance risk and provide regular income. Some investors choose individual bonds, while others invest in bond mutual funds. A fixed-income ETF is another option that invests in a diversified pool of bonds at a… read more…
- How Callable Bonds Work
Bonds are fixed-income investments that can provide some diversification and stability to your investment portfolio. That’s because they are fairly low-risk due to their inherent backing of the government, a corporation or another official entity. More specifically, a callable bond is a bond that allows the issuer to redeem it before it reaches maturity. Callable… read more…
- Why You Should Rethink Your Model Portfolio
With a rapidly-growing $4.8 trillion market share, model portfolios are a major part of the investment space. In fact, more than half of advised assets are in model portfolios, and data provider Broadridge Financial Solutions has forecast that models will control more than $10 trillion in assets by 2025. However, new research has emerged indicating… read more…
- Real Estate Mortgage Investment Conduit (REMIC)
A real estate mortgage investment conduit (REMIC) holds a fixed pool of mortgages for investors and could be used as a tax shelter for capital gains. It’s similar in composition to an exchange-traded fund (ETF) or mutual fund, but it’s complex for purposes of taxation. Even so, REMICs can be good investment vehicles for risk-averse retail… read more…
- What’s the Cryptocurrency Wash Sale Law?
Tax-loss harvesting could save you money as an investor if you’re trying to balance out capital gains with capital losses. But the IRS wash sale rule is designed to prevent people from unfairly taking advantage of tax-loss harvesting benefits. This rule applies to securities, meaning that cryptocurrency has been excluded as the IRS classifies it… read more…
- SEC Moves to Expand Hedge Fund, Private Equity Disclosures
This week, the U.S. Securities and Exchange Commission voted in favor of proposing rule amendments that would expand reporting requirements for private funds such as hedge funds and private equity funds. While private funds are already required to disclose certain information on predetermined timelines via Form PF, the proposed rule changes would tighten those rules further.… read more…
- How to Prevent These Social Media Financial Scams From Jeopardizing Your Retirement
Social media has brought the world closer together in many ways, some of them wonderful. But there are many dark sides to out modern connectivity, and one that has reared its ugly head increasingly in the past few years is the ability of criminals to use social media to scam people out of their money.… read more…
- This Asset Class Has the Best Performance Record During High Inflation
Unless you’ve been living under a rock, you know that the U.S. is currently in a period of fairly high inflation — the inflation rate was 7.0% in December of 2021. While much of the analysis has been on the political implications of high inflation — and how it impacts Americans ability to afford basic… read more…
- Taxes on Stocks: What Will You Have to Pay?
Buying and selling stocks involves paying capital gains taxes. How much you’ll owe depends on the amount of your earnings and how long you hold the stocks. While high-earners can pay as much as 37% on stocks they sell within a year of purchasing, lower-income investors may not pay any taxes on investment income. A… read more…
- Understanding How Social Trading Works
Social media makes it easy to stay connected to friends, family – and even your investment portfolio. The rise of social trading platforms allows investors to mimic the movements of their favorite investing influencers. It’s similar to copy trading, in that social traders look at what other top investors are doing then replicate that in… read more…
- Understanding How All-Weather Portfolios Work
An all-weather portfolio is a diversified investment strategy designed to perform well across different economic conditions, including growth, recession, inflation and deflation. Popularized by hedge fund manager Ray Dalio, this approach typically allocates assets across equities, bonds, commodities and gold to balance risk and return. By spreading investments across asset classes with varying sensitivities to… read more…
- Webull vs. Coinbase: How They Compare
Webull and Coinbase are two of the top online investment platforms. Webull offers a relatively new online brokerage that deals mostly in liquid assets. Webull is a favorite of young millennial investors who are just starting, but it also attracts medium-level and… read more…
- Webull vs. E*Trade: How They Compare
Webull and E*Trade are two popular online investment platforms. Webull is a relatively new online brokerage that deals mostly in liquid assets and offers securities for investors who trade frequently. It’s a favorite of the millennial generation and is excellent for… read more…
- Webull vs. Fidelity: How They Compare
Webull and Fidelity are two of the top online investment platforms. Fidelity is a full-service brokerage with a complete line of investment products and services. Fidelity has decades of experience and offers an array of educational and market research material… read more…
- Shares Outstanding vs. Float: Key Differences
When companies issue stock they often split their shares up. Some shares, typically most of them, get offered to the general public. Others are restricted, which might be held by the company itself or have different rules about how investors can trade them. The difference is expressed as the company’s shares outstanding vs. its floating stock.… read more…
- Understanding How Liquid Alternatives Work
Creating a strong investment portfolio means diversifying investments to hedge against volatility and loss. One way to do that, especially for investors who are unable to access hedge funds, is with liquid alternatives. Here’s what you need to know about this type of security. A qualified financial advisor can help you decide whether liquid alternatives are a… read more…
- Altcoin vs. Stablecoin: Pros and Cons
An altcoin has one of two definitions. It is either any cryptocurrency that is not Bitcoin, or any cryptocurrency that is neither Bitcoin nor Ethereum. Regardless of which definition you pick, this term refers in general to all of the… read more…