Want to start investing but don’t think you can? Think again! Given the high prices of stocks and the relatively high initial investment minimums of many brokerage firms, mutual funds and exchange traded funds (ETFs), you may think you won’t be able to invest in the stock market with $500. But you’d be wrong!
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We’re not attempting to predict the next market downturn, and certainly not a market crash. But it is certain that a downturn of some sort will happen in the future. It’s always best to have at least a loose plan in place to protect yourself and your investments from such an event.
Saving and investing are two key aspects of building a strong financial foundation that will support your future. Saving can help you deal with unexpected expenses and afford your goals, while investing can help build wealth over the long term. But when it comes to your regular paychecks, how can we make sure these smaller figures work the best for you?
Millions of people invest in stocks, but it’s likely that relatively few give much thought to what causes the stock market to rise and fall. Yes, selecting the right companies is critically important. But as the saying goes, Timing is everything. And that’s why it’s important to be aware of major factors that impact the stock market and to pay attention to changes in those areas to get a handle on where the market may be heading.
Do you really need an emergency fund? After all, don’t consistent investing, rising markets, expanded investment technology and ready access to credit lines make traditional savings unnecessary and even counterproductive?
Many millionaires and successful entrepreneurs swear by reading the morning newspaper or keeping up with monthly subscriptions. If you want to stay on top of the latest financial trends, as well as get solid, long-term insight you can use in your financial planning efforts, it can help to read financial magazines.
Is it possible to be blinded by dividends income and investment returns? Oh yes, and this is a common pitfall of being a smart investor. You may focus primarily, or even exclusively, on the dividend yield of a stock, but total income yield looks at the bigger picture. Here’s how to focus on total income and overall investment health instead of being blinded by dividend returns.
Diversification is good for an investment portfolio, right? That’s the conventional wisdom, but can your investments be too diversified? As the saying goes, too much of anything isn’t good and this principle applies to diversification, just as it does with virtually everything else in life.
The Department of Labor (DOL) recently finalized its long-awaited fiduciary rules. The rules mandate that all financial advisors who provide advice on a client’s retirement accounts act in the best interests of their client. The new rules are similar to those already administered by the DOL pertaining to advice provided for 401(k) plans and other qualified retirement plans. Clients will see the greatest impact of these new rules with regard to their IRA accounts, but the changes will likely impact their overall relationship with their financial advisors as well.
No one likes to make sacrifices. This is especially true when it comes to shopping or buying something you want. But making sacrifices in the short term can have big long-term gains that can make the sacrifices you made totally worth it. Want to know how you can build wealth for the future?