Investing Advice | InvestingAdvice.com

What are TIPS?

admin — Wed, 10 Mar 2010 14:51:00 +0000

You've probably heard about Treasury Inflation-Protected Securities (TIPS). They are treasury bonds that adjust their interest and principal payments with inflation. TIPS will likely become much more popular with the perceived inflation risk that may loom in the future. Like other Treasury securities, TIPS pay interest every six months and repay the total principal amount when they mature. The difference is that TIPS' principal value increases automatically based on the inflation rate as measured by the Consumer Price Index (CPI). So therefore when the CPI rises, the principal value of the TIPS also increases. Interest payments also rise because the...

Market Capitalization

admin — Mon, 22 Feb 2010 17:54:46 +0000

In the investment world of stocks, bonds, bulls and bears, there are many terms that you may have heard about but are not familiar with. One of those terms is market capitalization. Companies are classified in many ways. These classifications are used to help determine how much a company is worth. Market capitalization (or market cap for short) is one way of doing that. It is a measure of value that takes into account the total number of outstanding shares that a company has, multiplied by the current price of the stock. Most people would normally think that a large...

Diversify Your Portfolio to Manage Risk

admin — Thu, 31 Dec 2009 16:32:09 +0000

There's an old adage that says we shouldn't keep all of our eggs in one basket. This can be interpreted in a number of ways. For investors, it is synonymous with diversifying their portfolios. Beginning investors often put all of their money into one type of investment. They might purchase stock in a company that is doing well, or a low-risk government bond. These investments are usually quite safe, so the investor is unlikely to lose any money. But they also offer a low rate of return, so investors won't get rich from them either. Those who are looking to get rich...

Ten Investing Mistakes

admin — Mon, 30 Nov 2009 13:53:00 +0000

How do you make your money work for you? One way is by investing your money. Investments are a way to make your money grow through the stock market, investment companies, mutual funds, and retirement accounts. But, while you are looking to invest your hard-earned money in something, don’t forget to familiarize yourself with the mistakes that are more commonly made by new investors: 1. Not taking advantage of your 401(k) plan. Most employers offer a retirement plan for their employees. It can either be used from the first day of employment or there is...

Getting Financial Help

admin — Fri, 30 Oct 2009 16:30:45 +0000

Before you begin the process of finding a financial coach, you have to ascertain what role the financial coach is going to play in your life. In other words, why do you need a financial coach? Perhaps you are a baby boomer planning for retirement, a family whose household budget is out of sync, or a stock investor who needs advice. Or maybe you are thinking about how to save for your children’s tuition, how to set up a budget that will work or wanting the coach to take a look at your budget to determine its effectiveness. Once...

Why Should You Invest?

admin — Mon, 28 Sep 2009 17:54:58 +0000

For the uninitiated, investing can be a scary concept. Putting your hard-earned money into stocks, bonds and other instruments that could lose value doesn't seem to make much sense on the surface. While it's true that some people lose their life savings by investing, these people are in the minority. Not all investments are high-risk. Some come with guaranteed rates of return, ensuring that you will not lose your money. Others carry some risk, but are managed in such a way that the risk is low, especially over the long term. Those who put all of their money in very risky...

Actively Managed ETFs

admin — Thu, 27 Aug 2009 16:35:19 +0000

With so many investors questioning traditional market thinking about index-based investing, exchange traded funds (ETFs) are starting to move beyond their traditional passive, index territory into more active management. To some, it’s a fad. To others, it’s a serious threat to the territory traditionally held by mutual funds. Yet one thing so far is clear. Many of the biggest names in the mutual fund world are now seeking permission from the Securities and Exchange Commission to offer actively managed ETFs. ETFs are baskets of securities that trade like stocks and until recently have almost always tracked market indexes like...

Financial Stress

admin — Mon, 20 Jul 2009 17:19:14 +0000

Financial stress has many causes. For some, job loss or illness has made it difficult to make ends meet. For others, the volatility of today's stock market is a major area of concern. But whatever the reason may be, financial stress can take a serious toll on one’s health. Financial stress is a frequent trigger of mental health issues such as depression. Worrying about how you’re going to pay the bills and put food on the table can take over your thoughts, and it becomes difficult to enjoy the good things in life. Another common issue is anxiety, which may be...

Money Market Funds

admin — Wed, 24 Jun 2009 13:34:07 +0000

When it comes to savings, money market accounts are among the most popular. They offer better returns than most standard savings accounts, yet still allow easy access to your money when you need it. These accounts are often confused with money market funds, but the two are actually very different. Whereas a money market account is guaranteed not to lose value, there is no such guarantee with a money market fund. That’s because instead of a bank-backed savings account, a money market fund is an investment vehicle. Some banks offer money market funds as well as money market accounts, adding to...

What Are Securities?

admin — Tue, 19 May 2009 14:52:49 +0000

For the uninitiated, the stock market and all of the terms associated it can be as clear as mud. While most of us have a basic understanding of stocks themselves, our eyes tend to glaze over when presented with related concepts. So if you have no idea what securities are, you're certainly not alone. Actually, the concept of securities is not terribly complicated. In fact, a stock is a kind of security. In the financial sense, a security is defined as a document that represents ownership of a given asset. In addition to stocks, securities assign ownership of bonds, treasury certificates...