Did you know that 1 in every 5 Americans (in the middle tax bracket) pay about 13% in federal taxes? But don't let that deceive you, this average hides a big variation - some of us don't pay anything yet others pay more than 25%...
Different approaches The two basic approaches to stock mutual fund investing are through growth and by value. On one hand, mutual fund managers look for stocks of companies that can offer a strong potential in earnings growth. On the other hand, value fund managers prefer to...
Investing has associated risks. Stock market investing attracts risks such as market volatility that reduce the value of investments. Investors hope that they will get good financial returns in the long-term. The stock index fund is not capable of offering sufficient protection during stock market...
Bond ETFs are just a unique category of mutual fund wrapping. Bond ETFs trades at a discount the entire day. This also means that it trades at a premium in comparison to the underlying shares’ Net Asset Value (NAV). There is a small difference between...
Investment machines Roboadvisors are a class of financial advisors that provide electronic portfolio management services with minimal human intervention. They make use of algorithms such as Modern Portfolio Theory to conduct portfolio management. Their main task is to perform 'cookbook' financial investment management through a computer...
Introduction In the modern world, it is inevitable for a person to stay without undertaking activities that are associated with risk. This way, it is clear that modern man is capable taking investment risks which usually lead to acquiring of wealth. Chances of surviving in the...
It is important for young people who are interested in investing to adopt the diversified approach. Diversification of investment platforms is necessary for minimizing the level of risk exposure. Diversification implies spreading financial resources across several investments; for example, stocks, cash savings, mutual funds, and bonds....
Investment and saving are two common terms in the personal finance world. It is important to get the difference between the terms before going to the first step of investing. In a simple sense, investment is the commitment of an amount of funds to an investment...
Understanding diversification When referring to stocks, portfolio diversification means investing in different companies across various sectors and industries in a bid to bring down the risk factor. While diversifying your portfolio is a wise thing for an investor and an effort at risk management, there is no...
The easiest way to avoid investment losses is by planning thoroughly for investment risk management. The most prudent investment advice to understand that your decision to buy, sell or hold has associated risk. What you can do as an investment strategy is to accept this risk...