Investing

Two popular choices for long-term investing are mutual funds and exchange-traded funds (ETFs). Mutual funds have been around for much longer than ETFs but ETFs have rapidly grown in popularity. Which should you choose? Is there are better option? In this comprehensive comparison, we will delve into the differences between these two common investment vehicles to help you better understand what you own and the implications of each. The 30,000 Foot View The core function of mutual funds and ETF's are the same: to provide a means by which investors with limited capital can obtain diversification in the markets.  Investment…

When it comes to investing, market index funds have emerged as a popular and strategic choice for many investors. These funds offer an avenue to gain exposure to a diversified collection of assets while mirroring the performance of a specific market index. When choosing index funds, it is important to understand how the index is constructed as the rules behind the index will impact how the index performs. Before we dive into the intricacies, let's establish what a market index fund is. A market index fund is a type of mutual fund or exchange-traded fund (ETF) that is designed to…

To become a better investor, you must understand the basics of investments. If you are a beginner investor, it may be confusing on how to get started with investing. There are three primary decisions to make when investing:What investments should you own?How should you go about buying them?What accounts should the investment be held?This article covers the first two questions, and a later article will cover the third.  What is an Investment An investment is an asset whose purpose is to generate income or appreciation. Income could be in the form of dividends, interest, rent payments received, or business distributions.…

The stock market has a rich history of fluctuating between periods of bullish and bearish sentiment, shaping the overall trajectory of long-term returns. Understanding the dynamics of these market cycles is essential for investors seeking to capitalize on opportunities and navigate the ever-changing landscape. In this article, we will explore the significance of historic bull and bear markets and how their interplay has contributed to the overall growth of the market over time. What is a Bull Market and a Bear Market? A bear market is marked by a prolonged period of declining stock prices, often accompanied by investor pessimism,…

Investing in financial markets always carries a certain level of risk, and even the most astute investors experience portfolio losses. When portfolio losses occur, a challenging reality sets in: recovering from these losses requires more significant gains than the initial losses themselves. In this article, we will delve into the concept of portfolio losses and the uphill battle investors face when attempting to regain lost ground. Portfolio losses refer to the decline in the overall value of an investment portfolio, resulting from a combination of factors such as market downturns, poor investment decisions, or unforeseen events. These losses can be…

What sets value stocks apart from their counterparts is the fundamental principle of purchasing at a discount. Value investors aim to identify stocks trading at a lower price relative to their intrinsic value, believing that the market has undervalued them. This approach involves assessing a company's financial health, analyzing its assets, earnings, and potential for growth, among other factors. By focusing on the underlying value rather than short-term market fluctuations, value investors seek to obtain long-term gains from holding good companies until their true value is realized.This article reviews why value stocks are important, where value fits into a portfolio,…

Planning for retirement is a complex task involving many decisions about an unknown future. Working with a qualified, comprehensive advisor who looks at your entire financial picture and has your best interests in mind can help you navigate and prepare for a fulfilling retirement. As a practitioner in financial planning, I am constantly reviewing financial research to ensure my plans reflect not only my client's unique financial circumstances but also the future economic, tax, and demographic changes. JP Morgan releases an annual Guide to Retirement that summarizes several eye-opening observations regarding retirement longevity, income, healthcare, and expenses. The guide is…

The following are basic instructions for how to purchase TreasuryDirect Series I Savings Bonds.  Updated as of February 27, 2023. If these steps have changed, please let me know. 1 Log Into TreasuryDirect Link to Login: Log In — TreasuryDirect The Log In process is a 3 step process: 1) Enter your account number 2) Enter the one-time password sent to your email address 3) Manually type password (and by manually, I mean you have to use your mouse to type the password into a digital keyboard. You are not able to copy and paste, use your keyboard, or use a…