Why Having an Investment Plan is Important
Why Having an Investment Plan is Important What is Investment Planning? Investment planning is a critical part of the financial planning process, where one identifies specific financial plans and puts together a strategy for achieving them. Investments are chosen based on your investment risk tolerance and time horizon. There are various investment options in the […]
Things to consider when crafting an investment strategy/portfolio allocation
Things to Consider When Crafting an Investment Strategy/Portfolio Allocation Many factors that go into putting together a winning investment strategy. First and foremost, you need to determine your financial goals, and which goals are short-term in nature vs. long-term. You also need to look at your tolerance and capacity for taking risk. Lastly, diversification plays […]
A Look at Bonds
A Look at Bonds A bond is issued by governments, municipalities, and corporations to raise money and is essentially a loan from the buyer to the issuer of the bond. An investor who buys a bond is lending the issuer money for a period of time in exchange for interest paid periodically and then a […]
A Look at Investment Risk
A Look at Investment Risk All investments have some degree of risk, and whether it is individual stocks, mutual funds, exchange-traded funds, bonds or real estate, there is always the potential an investment can lose value. Generally speaking, the more risk associated with an investment, the higher the expected return for that investment will be. […]
The Benefits of Dollar-Cost Averaging
The Benefits of Dollar-Cost Averaging Dollar-cost averaging (DCA) is a strategy that can help reduce the impact of volatility when investing in securities. Instead of making a lump sum investment, investors can use dollar-cost averaging to break up the investments into equal smaller amounts over a certain period. Utilizing dollar-cost averaging can help an investor […]
Examining the Roth IRA
Examining the Roth IRA When planning for retirement, you have several options to consider when deciding which type of retirement account to fund. You may have the option of contributing to a defined contribution plan through an employer that includes a 401(k), and for those who do not have that option, an Individual Retirement Account […]
The Importance of Diversification in Investing
The Importance of Diversification in Investing It may sound a bit cliché, but the adage “don’t put all your eggs in one basket” rings especially true when it comes to investing. In a perfect world, your investments would only increase in value day after day, month after month and year after year. In reality, there will likely be periods when some […]
Utilizing the Power of Compound Interest
Utilizing the Power of Compound Interest For investors, there is unfortunately no magic wand or crystal ball that will lead to riches. But saving and investing wisely can open individuals up to something almost as powerful. It is called compound interest, and it is one of the surest ways to build wealth. All it takes […]
Financial New Year’s Resolutions for 2020
Financial New Year’s Resolutions for 2020 Making New Year’s resolutions is a great way to plan to be better in the new year. Unfortunately, sticking with those resolutions isn’t as easy as setting them. Whatever is on your list for the upcoming year, whether it is to get in shape, spend more time with family […]
Should I Take My Pension as a Lump Sum or an Annuity?
Should I take My Pension as a Lump Sum or an Annuity? You are getting ready to retire, and you have a defined benefit pension that will kick in once you stop working. You may have the option of taking the pension in the form of a one-time lump sum distribution or as lifetime monthly […]
