What is Risk Tolerance, and What Does it Mean for You?
The term “risk tolerance” gets thrown around a lot when it comes to investing. So, what does it mean, and how does it relate to retirement? In simple terms, risk tolerance is how comfortable you are with potentially losing money on an investment.[1] If you don’t want to lose any money at all from your […]
A Crash Course in Treasury Securities
Ever wondered what treasury securities are? What about the difference between a treasury note, a treasury bond, and a treasury bill? Let’s uncover what these securities are so that you can have a sense of how they function and how they work for an investor. What Are Treasury Securities Used For? Treasury securities are basically […]
What is a Real Estate Investment Trust (REIT)?
At the most basic level, a real estate investment trust is a company that owns, operates, or finances income-generating real estate.[1] They allow people to invest in a trust that then purchases a direct ownership stake in real estate properties. The investor then has exposure to the potential profits and income generated from the real […]
EE Bonds: A Long-Term Investment Tool
EE bonds are a little-known type of bond that can be accessed through the US Treasury. However, the unique part about them is that they are guaranteed to at least double in price by the time they reach maturity, which is 20 years from when they were issued. These bonds could be a solid investment […]
What Are the Differences Between ETFs and Index Funds?
ETFs and index funds are two popular investment vehicles that provide investors with exposure to a diversified portfolio of securities. While both investment options closely track a particular market index, they differ in several key ways. One significant difference between ETFs and index funds is the way they trade. ETFs trade like individual stocks, with […]
Investment Management for Retirement: The Balancing Act
When nearing retirement, it is essential to adjust your investment portfolio to reduce potential risks and increase potential gains. This process of rebalancing guarantees that your investments align with your financial objectives and risk tolerance, ultimately contributing to a prosperous retirement. Managing Investment Risk Rebalancing your portfolio has the crucial advantage of enabling you to […]
What Dividends Can (And Can’t) Do for Your Retirement
One investment strategy that can be useful when it comes to setting yourself up for retirement is dividends. Dividends are regular payouts to shareholders based on the profits of the company. If you own some stock in a company, it’s possible that you will get regular dividends.[1] Dividends are traditionally distributed quarterly, and they scale […]
Don’t Forget the Power of Compounding Interest
Einstein is quoted as saying that the most influential mathematical concept of his time, or “the eighth wonder of the world,” is the concept of compounding returns.[1] Compounding interest is a financial concept that refers to the reinvestment of earned interest, allowing for the exponential growth of an initial investment. This can be a valuable […]
An Update on the Crypto Industry
In 2022, the crypto industry was shaken by as capital fled the crypto markets as inflation emerged and the economic recession ensued. Shady and even fraudulent activities were uncovered at some of the most established companies. Cryptocurrencies that were once considered by some as somewhat stable collapsed as a result. So, what is going on […]
2 Reasons 2022 Challenged the 60/40 Portfolio Allocation Strategy
The 60/40 allocation strategy is frequently recommended when beginning your investing journey. With 60% of your portfolio in equities and 40% in bonds or other fixed-income investments, this approach has traditionally provided a balanced benefit, with high growth potential from stocks and a safety net from bonds.[1] The assumption was that stock and bond markets would […]
