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... Articles Tagged ‘investing advice’
Ten Investing Mistakes
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...
Monday, November 30th, 2009
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
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...
Friday, October 30th, 2009
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?
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...
Monday, September 28th, 2009
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
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...
Thursday, August 27th, 2009
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
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...
Monday, July 20th, 2009
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
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...
Wednesday, June 24th, 2009
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?
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...
Tuesday, May 19th, 2009
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... Investment Time Horizon
Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate.
Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could...
Tuesday, April 28th, 2009
Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate.
Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could... Investing vs. Speculating
Some view investing in stocks, bonds and other investments as nothing more than gambling. Others see it as a smart strategy for making your money work for you. Who's right? It depends on your approach.
These days it's no secret that practically all investments carry some degree of risk. Stocks can lose value, or their issuers could stop paying dividends. Bonds may not be repaid as agreed. That's why it's so important to thoroughly research any investment you make.
But some investors prefer to buy and sell attractive stocks in the hope that they will increase in value. If this works,...
Monday, April 20th, 2009
Some view investing in stocks, bonds and other investments as nothing more than gambling. Others see it as a smart strategy for making your money work for you. Who's right? It depends on your approach.
These days it's no secret that practically all investments carry some degree of risk. Stocks can lose value, or their issuers could stop paying dividends. Bonds may not be repaid as agreed. That's why it's so important to thoroughly research any investment you make.
But some investors prefer to buy and sell attractive stocks in the hope that they will increase in value. If this works,... Can You Time the Market?
Hindsight is so clear. A stock chart can tell you exactly when you should have bought and sold. Reliable market predictions, on the other hand, are impossible. If you could spot a peak (or trough) as it's occurring and time your sale or purchase accordingly, you could make a fortune. Problem is, nobody can do it.
So although it can be tempting to take your profits and run when the market is advancing sharply, it may be better to hold on and see what happens. Then, a least twice a year, rebalance your portfolio to restore your original mix of...
Monday, March 30th, 2009
Hindsight is so clear. A stock chart can tell you exactly when you should have bought and sold. Reliable market predictions, on the other hand, are impossible. If you could spot a peak (or trough) as it's occurring and time your sale or purchase accordingly, you could make a fortune. Problem is, nobody can do it.
So although it can be tempting to take your profits and run when the market is advancing sharply, it may be better to hold on and see what happens. Then, a least twice a year, rebalance your portfolio to restore your original mix of... 
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