- Investment Management vs. Financial Planning
Investment management involves overseeing and handling financial assets like stocks, bonds and other securities. This process includes creating a strategic plan for asset allocation, regularly monitoring investments and making adjustments to achieve financial goals. Financial planning, on the other hand, is a broader discipline that encompasses all aspects of an individual’s financial life. It provides… read more…
- 5 Steps in the Investment Management Process
Investment management is a systematic approach that handles investments with the aim of meeting specific financial goals. It involves making informed decisions about assets, portfolios and strategies to maximize returns while minimizing risks. This typically requires using efficient asset allocation and diversification strategies to balance risk and reward. Here are five common steps to guide… read more…
- How Diversification Reduces Risk for Investors
Diversification is a fundamental investment strategy that involves spreading investments across various financial instruments, industries and other categories to reduce exposure to any single asset or risk. By not putting all their eggs in one basket, investors can mitigate the impact of poor performance from any one investment. Diversification can help achieve more stable and… read more…
- Potential Investors to Follow Online for Inspiration
Many fund managers, analysts, brokers and successful individual investors regularly post about their activities and insights online through blogs, newsletters and videos on various social media platforms. Following prominent online investing influencers can help you glean information on current trends and learn successful strategies. Their commentaries can also provide inspiration as you pursue your own… read more…
- How to Create a Dividend Investing Strategy
Unlike capital gains investing, wherein a portfolio generates money when you sell its underlying assets, income investing involves generating income by holding dividend-paying stocks. Income investing can be a good way to generate compounding returns with the goal of living off your dividends without diminishing your capital. However, dividend investing also tends to generate lower… read more…
- Pros and Cons of Donor-Advised Funds
Donor-advised funds (DAFs) offer a streamlined way to give to charity, combining tax advantages with flexibility. One major benefit is the immediate tax deduction you receive upon donating to a DAF, even if the funds are distributed to charities over time. However, administrative fees can eat in to the value of your donation, and while… read more…
- What Is an Investment Philosophy?
An investment philosophy is a set of guiding principles that shape an individual’s or institution’s approach to investing. It acts as a blueprint, helping investors make consistent, informed decisions aligned with their financial goals and risk tolerance. At its core, an investment philosophy includes beliefs about market behavior, investment strategies and risk management. If you… read more…
- What Is Portfolio Rebalancing and How Does It Work?
Over time, market fluctuations can cause your investment portfolio to drift from its intended mix of stocks, bonds and other assets. Regularly rebalancing your portfolio involves selling high-performing assets and buying underperforming ones to maintain your target allocation. This disciplined approach can help manage risk and optimize returns, keeping your investment strategy on track. If… read more…
- How to Pick Dividend Stocks for Long-Term Investing
Dividend stocks are often a main component of a long-term investor’s portfolio, as they offer the dual benefit of potential capital appreciation and regular income. While growth-oriented companies often reinvest profits back into the business, more established companies may distribute a percentage of their earnings directly to shareholders in the form of a dividend. This… read more…
- How to Pick Stocks for Long-Term Investing
Choosing stocks for long-term investing requires a strategic approach based on analysis and informed decision-making. Unlike short-term trading, which aims to capitalize on market fluctuations, long-term investing emphasizes patience and a thorough understanding of a company’s fundamentals and broader economic conditions. Investing for the long haul allows investors to build a diversified portfolio aimed at… read more…
- Residential Real Estate Investment Options
Real estate can be a good way to diversify your portfolio. There are several ways to access this market, depending on your capital and risk tolerance. Residential real estate can be capital intensive, but can also be potentially lucrative. Buying, selling and renting property can be big business, even at a relatively small level. Even retail… read more…
- Differences Between Treasury Bills, Notes and Bonds
Treasury bills, notes and bonds are collectively known as Treasury securities, and are issued by the U.S. Department of the Treasury. It’s also worth noting that the Federal Reserve buys them as part of its monetary policy to aid in controlling inflation and stabilizing the economy. Backed by the full faith and credit of the… read more…
- Nvidia Stock Split: What Investors Need to Know
Nvidia ($NVDA) stock will undergo its sixth stock split with shares trading at one-tenth the price starting June 10, 2024. Before the Q1 2024 earnings call on May 22, 2024 when the split was announced, NVDA closed at $949.50. Since, the stock has reached all-time highs, breaching the $1,150 mark. While the split price will… read more…
- How Interest Rates Impact Your Bond Investments
Bonds play an important role in a well-diversified investment portfolio, offering a predictable income stream and potential stability to balance the volatility of stocks. These fixed-income securities have an inverse relationship with interest rates. When rates rise, bond prices fall and vice versa. Understanding the mechanics of bonds, the factors influencing interest rates and the… read more…
- Differences of Asset Allocation and Diversification
Asset allocation and diversification are cornerstone investing strategies designed to optimize the balance between risk and reward within an investor’s portfolio. Asset allocation involves strategically distributing investments across a variety of asset classes, while diversification entails spreading investments across different sectors or geographical regions to mitigate the risks associated with any single investment. If you… read more…
- History of Amazon: Company and Stock
Amazon is a Seattle-based retailer and technology company primarily involved in e-commerce, cloud computing (Amazon Web Services), digital streaming and artificial intelligence. It owns dozens of diversified subsidiary companies, with large investments in others. Amazon’s stock is listed on NASDAQ under the ticker symbol $AMZN and is part of the S&P 500 index. Here’s what… read more…
- What Bond Duration Risk Is and How to Prepare
Investing in bonds often seems like a safe bet, but understanding bond duration risk can help you better protect your portfolio. Bond duration risk refers to the sensitivity of a bond’s price to changes in interest rates. When interest rates rise, bond prices typically fall, and the longer the duration, the more significant the impact.… read more…
- Differences of Bond Duration vs. Maturity
If you’re looking to invest in bonds, it can be helpful to understand bond duration vs. maturity. Maturity is the time remaining until the bond’s principal is repaid. A bond with a 10-year maturity will return the principal to the investor in 10 years. Meanwhile, duration measures a bond’s sensitivity to interest rate changes, and… read more…
- NVIDIA Q1 2024 Earnings: AI Demand Fuels Growth Leading to Stock Split
NVIDIA’s Q1 2024 financial results were announced on March 22, 2024. Jensen Huang, CEO and President of NVIDIA, spoke to investors, stating that “the next industrial revolution has begun,” when referring to the rapid increase in demand for AI infrastructure. Here’s what investors can take away from the call, including details on the announcement of… read more…
- History of NVIDIA: Company and Stock
NVIDIA makes computer processors. The company started out, primarily, in the video game and graphic design market. In the late 1990s and early 2000s, it was known mainly as a leading company in the relatively niche high-performance gaming industry. Today, it is one of the biggest tech companies in the world with a market cap… read more…
- Types of Alternative Investments for the Wealthy to Consider
For some people, “wealthy” can mean simply meeting their household needs. For others, maybe it’s holding enough money and assets to be considered a sophisticated investor. Whatever your definition of wealth, once you have your future secured through steady, long-term assets, you can choose to explore alternative investments for your investment portfolio. Alternative investments encompass anything… read more…
- What Are Safe Haven Assets?
Investing in safe haven assets can help investors protect their wealth during times of economic uncertainty and market volatility. These assets, which include defensive stocks, government bonds, currencies, gold and cash, are sought after for their ability to provide stability and security when other investments experience significant downturns or increased risk. By allocating a portion… read more…
- How Automated Investing Works
Automated investing is the practice of using algorithms to automatically manage your portfolio. It’s a relatively new tool with investing, and is typically used to build long-term, passive portfolios. There are several benefits to automated investing, particularly given that these systems can often build well-indexed portfolios with lower fees than a legacy mutual fund or… read more…
- What Are Copper ETFs?
Investing in commodities can be complex, particularly when it comes to metals like copper that play a pivotal role in various industries. Copper ETFs can allow you to gain exposure to the prices of the precious metal without the challenges of handling it directly. These ETFs can be an attractive option to diversify your portfolio,… read more…
- Investing in I Bonds vs. EE Bonds
I bonds and EE bonds, both offered by the U.S. Treasury, present distinct features tailored to meet diverse investor needs. I bonds, known for their inflation-adjusted interest rates, provide a robust option for investors looking to maintain the purchasing power of their capital amidst fluctuating economic conditions. On the other hand, EE bonds offer a… read more…