- Dividend Capture Strategy: How It Works
A dividend capture strategy involves purchasing stocks before their ex-dividend date, then holding onto them just long enough to receive a dividend payout. This approach is also called buying the dividend. Using a dividend capture strategy could be profitable if you’re investing in stocks that pay above-average dividends. But it’s not for beginners and there… read more…
- What Is the 50% Rule in Real Estate?
When evaluating a rental property, simple rules of thumb can help you estimate your potential profitability before diving into the details. One of the most common is the 50% rule, which suggests that a property’s operating expenses will typically equal about half of its gross rental income. This guideline can be a quick way to… read more…
- What the Fed Means by ‘Tapering’
When prices are rising and nearly everyone who wants a job can find one, the Federal Reserve slows down economic stimulus to boost the economy after the government’s goals have been met. This is known as “tapering,” and the central… read more…
- How to Build a Dividend Portfolio
Investors seeking income often turn to dividends because of their advantages over bonds and bank deposit accounts. Dividends not only provide consistent cash flow, but they can also allow investors to participate in the appreciation of the asset as well.… read more…
- How to Avoid Taxes on Crypto Investments
The IRS treats cryptocurrency as a standard type of property, the same as receiving comic books or a car. The government taxes this asset as either ordinary income or capital gains. This means that if you sell it and make a profit, you will ordinarily owe taxes on those gains. As with all investment assets,… read more…
- A Guide to Income Investment Strategies
Maybe you are looking for a way to build a supplemental income stream during your working years, or perhaps, you’re planning for retirement. Whatever your motivation, this is where income investing strategies can help. An income investing strategy revolves around building a portfolio that generates a steady income. With the right strategy, you can up… read more…
- How to Calculate Cash Flow in Real Estate
Investing in cash flow real estate, also known as rental property, can be an effective way to generate a largely passive stream of income. You buy a property, install a tenant or two and collect monthly rent payments. It sounds simple enough, but there’s a little more involved in making sure that a rental property… read more…
- What Is a Joint Brokerage Account and When Should You Use One?
Joint brokerage accounts, of which there are several types, are shared by two or more people. There are some advantages to opening a joint brokerage account with your spouse, a relative or a business partner. There are also some potential… read more…
- How to Build a Bond Ladder ETF
Bonds can offer a relatively safe way to invest and earn consistent interest income over time. A bond ladder exchange-traded fund (ETF) offers exposure to multiple bonds with varying maturity dates. Investing in a bond ladder ETF can help with… read more…
- A Guide to Investing in Dividend Index Funds
Dividend index funds are mutual funds or exchange-traded funds (ETFs) that are indexed to dividend stocks. This is different from an index fund that pays dividends to investors, based on the profits realized by its underlying investments. Investing in dividend index funds can offer diversification, income and a potential hedge against inflation. Understanding how these… read more…
- Capital Gains Tax: Definition, Rates & Calculation
If you make money from just about any source, you’re likely to find Uncle Sam nearby. It’s true of money you earn from a job, and it’s true of money you earn from investments – whether that’s stocks, real estate… read more…
- 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?
The connection between risk and return sits at the center of modern investing. As a rule, assets that involve greater uncertainty must offer the possibility of stronger gains to attract investors, while more stable investments tend to generate comparatively lower returns. Over extended periods, stocks have generally produced higher returns than bonds, although results differ… 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…