Browsing Posts of Author
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4 June 2011 at 11 : 42 AM
What are Fundamental Index Funds?
A relatively new type of mutual fund, a fundamental index fund is a passively managed fund that aims to beat the overall market, while providing very low expenses. Here’s how they work and why they think they can beat the market: What is a fundamental index fund? An index fund is a portfolio of stocks [...]
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22 May 2011 at 19 : 07 PM
Make Investing Part of Your Routine
In order to get money into your investing accounts, you need to make contributions. If you wait to invest until you have extra money, you’ll never add any money to your account. The key to making these contributions is to make them part of your monthly, weekly and even daily routine. Start thinking in an investing frame of [...]
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15 May 2011 at 10 : 10 AM
How a Bond Works
Every investing magazine article and news show talks about the importance of adding bonds to your portfolio. But do you really know what a bond is and how it works? We’ll cover some bond basics here, including what a bond is, how it works, and how you can buy one. What is a bond? A [...]
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7 May 2011 at 20 : 07 PM
Learn To Do Your Own Investment Research
There’s no better way to stay on the right investing path than to do things yourself. That way you have control over your own finances. And not only will you learn a lot and be able to make your own investment decisions, but you’ll save thousands of dollars over the years in fees and advisory [...]
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29 April 2011 at 15 : 00 PM
How to Calculate Price to Earnings Ratio (PE)
Part of doing your own investing research is understanding how to calculate stock valuation ratios. More importantly, you should be able to understand what the ratios mean, why they’re important, and how to use them to compare with other companies. Here, we’ll cover the price to earnings ratio, commonly referred to as a PE, or PE [...]
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22 April 2011 at 12 : 14 PM
Don’t Dip Into Your Investments
The more money you save and invest, the richer you’ll feel. Although no one ever really feels “rich”, knowing that you have money often tempts people to spend more, and can slowly change your spending habits over time. Proof of this phenomenon can be seen by looking at how the economy acts in a recession. [...]
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15 April 2011 at 08 : 40 AM
Don’t Make Large Stock Bets
In heading down the right investing path, there is no room to make large bets in your stock portfolio. Here is some background on the reasons investors make large bets, followed by the reasons for not making these stock bets. Why investors make big bets. First of all, there is a psychological effect at work [...]
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5 April 2011 at 21 : 33 PM
Don’t Be Too Conservative With Your Investments
For every investor that is too aggressive with their investments and takes too much risk, there are probably a hundred investors who don’t take enough risk. Staying on the right investing path means finding the right level of risk and sticking with it. Long term rates of return for the stock market range from 8-12% [...]
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26 March 2011 at 19 : 12 PM
Don’t Use Technical Analysis for Stocks
We’ve never met a successful investor that uses technical analysis to trade stocks. That’s because technical analysis does not work. If you want to stay on the right investing path, you should understand what technical analysis is and why people use it. First, technical analysis is the analysis of stocks in order to look for [...]
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19 March 2011 at 15 : 38 PM
Find the Right Diversification for Your Investments
Investment diversification is an often overlooked quality. I believe the experts when they say that the average investor spends more time planning their vacation than planning their investments. When it comes to diversifying your portfolio, you’ll get lots of different advice. The best advice is that the more money you have to invest, the more [...]
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