Investing for Beginners Sitemap - Page 2 2016-09-26
Measuring Investing Success by Annual Passive Income
Measure your investment success by the passive income you generate each year from your stocks, bonds, real estate, private businesses, and more.
4 Things To Look For In a Passive Income Stream
The goal of almost any successful long-term investment portfolio eventually concludes with the desire to generate passive income.
New Investor's Guide to Trust Funds
From tax advantages to protecting your heirs from creditors or their own poor decisions, there is simply no tool as useful as a well-designed trust.
New Investor's Guide to Trust Funds
From tax advantages to protecting your heirs from creditors or their own poor decisions, there is simply no tool as useful as a well-designed trust.
Naming Your Family Trust Fund
The task of naming your family trust isn't as difficult as you might imagine, especially with a little creativity and flare that protects heir privacy.
Bank Trust Departments - Everything You Need to Know
A bank trust department is a specialized group within a bank that focuses on investing and administrating assets left in a trust fund.
7 Guaranteed Ways to Destroy Your Wealth
These are the seven most effective ways to hurt your net worth and ensure that you stay poor or in poverty throughout your life.
Double Declining Balance Depreciation Method
The double declining balance depreciation method is an accelerated depreciation method that increases the amount of charges taken in early years.
Formulas and Financial Ratios for the Income Statement
Now that you've learned to analyze an income statement, here is a summary reference guide of financial ratios for you to use in the future.
Gross Profit on the Income Statement
The gross profit a business earns is the total revenue subtracted by the cost of generating that revenue, or, sales minus cost of goods sold.
Income Before Tax on Income Statements
Corporate income before tax, and corporate income taxes, are reflected on a firm's income statement to show operating profit paid for taxes.
Cost, Equity, and Consolidated Methods
Depending upon the amount of voting stock owned, minority interests will use the cost method, the equity method, or the consolidated method.
Leveraged ETFs Are Designed to Lose Money Over the Long-Term
Leveraged ETFs are structured in a way that the longer you own one, the higher the chances you lose money due to daily rebalancing and interest cost.
Unit Investment Trust Basics for New Investors
A unit investment trust, or UIT as it is sometimes called, is a basket of stocks, bonds, REITs, or other securities sold to individual investors.
Bonds Are Riskier Than Stocks But Still Belong in Your Portfolio
Investing in bonds is much riskier than investing in stocks over periods of 10 years or more due to inflation and interest rate risk but bonds still might need to be play an important role in your family's portfolio.
Can I Sue My Stock Broker? Response to Reader Regarding Suing Stock Broker for Market Losses
This is my response to a reader regarding the potential of suing his stock broker for 35 percent losses in the portfolio of his parents. Take them for what they are worth.
Can I Sue My Stock Broker for Market Losses?
This is part two of my response to a reader when asking if it would be okay to begin suing his stock broker for losses incurring in his parent's retirement account. Page 2.
How to Generate Income and Wealth
If you've ever wondered what it would take to be a member of the upper crust or if you just like observing social classes, this is a great read.
Household Income in the United States
Household income in the United States is perhaps the best way to estimate the standard of living and find out where you and your family fall compare to your neighbors. This chart of household income in the United States was provided by the United States Census and based upon the 2005 data.
EBITDA Indicates a Company's Financial Performance
Earnings before interest, tax, depreciation and amortization, also known as EBITDA, is commonly mistaken for a measurement of cash flow.
Analyzing Accumulated Depreciation on the Balance Sheet
Accumulated depreciation is the write-down of an asset's carrying amount on the balance sheet due to loss of value from usage and age.
Basic Earnings Per Share vs Diluted Earnings
Discover the difference between Basic earnings per share and Diluted earnings in this investing lesson.Part of a series of investing articles.
Comparing Depreciation Methods
Depending on which depreciation method is used, the depreciation charges incurred on the income statement can vary greatly.
Depreciation and Amortization on the Income Statement
Depreciation and amortization expense is charged against the income statement to spread the purchase price of a fixed asset over its useful life.
Capital Gains Basics
Capital gains are the profits earned from buying investments at one price and selling them at a higher price. Learn how they are taxed and more.
Are Bonds Safer Than Stocks?
It is not always true that your risk decreases when you add bonds to your portfolio and not all stocks are equivalent to gambling at a casino.
7 Ways to Lower Your Family's Investment Tax Burden
There are several strategies you can easily employ to lower your investment taxes on capital gains, dividends, interest, and rents.
What Are the Sectors and Industries of the S&P 500?
The sectors and industries that makeup the S&P 500 are one of the most important concepts new investors should learn.
5 Rules for Investing Money Wisely and Building Wealth
Investing money wisely comes down to behaving in a way that allows your money to compound over long periods of time in a tax-efficient manner.
Four Investing Mistakes to Avoid
Avoiding these four investing mistakes can save you significant amounts of money in the long run, hopefully allowing you to retire rich.
Understanding Investing And The Stock Market
Investing lesson is an introduction to the stock market. The lesson aims to give a basic understanding of the market to new investors.
Stock Market Introduction and Financial Terms
This introduction to the stock market and list of financial terms will help provide a firm foundation for your investing activities. Page 2.
Investing Lesson 1 - The Purpose of the Stock Market
The stock market exists to provide capital to companies wishing to expand operations. Page 3.
Investing in Tax-Free Municipal Bonds
Discover some of the advantages to investing in tax-free municipal bonds including general obligation bonds and revenue bonds.
How a Small Business Investment Can Make Money
When you make a small business investment, you can profit in one of three ways. Understanding the sources of these profits can help you better plan.
Two Secrets New Investors Should Remember When Managing Their Money
When building an investment portfolio, take advantage of opportunities when they surface and keep costs and taxes low so you have more money to compound.
Two Types of Investments in a Small Business
When you invest in a small business, you need to decide between making an equity investment and a debt investment. There are pros and cons to each.
Always Dollar Cost Average!
You know, you’d think we’d get tired of saying it but dollar cost averaging really is the single best way to lower your risk over long periods of time and help lower your overall cost basis for your investments. In fact, you can find out all the information on dollar cost averaging – what it is, how you can implement your own program, and how it can help you lower your investment risk over time – in the article Dollar Cost Averaging.
Avoid Mutual Funds with High Turnover Ratios
You should avoid mutual funds with high turnover ratios because it might mean that the portfolio managers don't have conviction in their stock picks. In addition high mutual fund turnover ratios can result in higher capital gains taxes and income taxes. Page 3.
Find a Philosophy that Agrees with Your Own when Selecting a Mutual Fund
When selecting a mutual fund it is important to find a management team that has a similar investing philosophy to your own. This will allow you to feel confident that they are managing your capital in a way that leaves you comfortable at the end of the day.
Look for Ample Diversification of Assets
When building a portfolio of mutual funds it is important to ensure you have ample diversification. These diversification guidelines will help you know if you have your assets spread out far enough to help mitigate risk.
Know the Appropriate Benchmark for Your Mutual Funds
Each mutual fund has a different approach and goal. That’s why it’s important to know which benchmark you should compare it against to know if your portfolio manager is doing a good job. There are a number of investment benchmarks including the Dow, the S&P 500, the Wilshire 5000, the Russell 2000, and the Nasdaq Composite.
Profile of the Capitalist Class
The capitalist class represents the top 1 percent of wealth in the United States. By earning a living from their assets, the capitalist class is often able to enjoy life more and spend time with family, travel, and do the things about which most people dream. This ten part step-by-step guide will reveal why the capitalist class is different and how they got there.
The Capitalist Class Realizes Money is a Fungible Commodity
The capitalist class realizes money is a commodity and doesn't care where it gets it provided the terms are right. The capitalist class apply at 500 banks, if necessary, before getting one yes.
Why the Capitalist Class Prefers Passive Income
Passive income is a much better way to earn money especially if you are a member of the capitalist class or the super rich in the United States. Page 4.
Secrets of the U.S Capitalist Class, The 1 Percent
A discussion that reveals why the rich, capitalist class is different, how they got there and how they stay there now and for generations.
Why the Capitalist Class Works on Long Paying Dividends
The capitalist class focuses on projects that pay dividends for long periods of time, not a single pay check. In effect, they find a way to continue earning from their labor years after they have done the work. Page 2.
The Capitalist Class Diversifies Income Sources
The capitalist class focuses on diversification not only in assets but in income as well. By diversifying income intelligently, you can survive volatility in the economy and market.
The Capitalist Class Understands the Nature of Money
The capitalist class understands that the nature of money is like a seed and sewing and reaping is real. By planting money and making investments today, you can reap a harvest later on and the size of that harvest depends upon how intelligently you chose your investment.
The Capitalist Class Makes Its Own Luck
The capitalist class doesn't rely on luck to make their fortune. They consistently outwork and out study everyone they know. When a few of their projects pan out and return great profits, those around them assume it was luck because they didn't see the effort that went into achieving the end result.
The Capitalist Class Doesn't Care What the Market Does
The capitalist class doesn't care what the market does because there are always intelligent things to do.
The Capitalist Class Understands Taxes
The capitalist class understands tax laws and how to minimize what they owe both legally and ethically.
The Capitalist Class Thinks of Business as a Game
The capitalist class thinks of business as a game, and often doesn't suffer the same emotional attachments to money that the middle class does.
Investing for Beginners
Investing for Beginners. Page 2.
Real Estate vs. Stocks - Which Is the Better Investment
Although both real estate and stocks offer advantages, each come with risks. We examine these risks and discuss some of the other pros and cons.
Components of an Investor's Required Rate of Return
In financial theory, the rate of return at which an investment trades is the sum of five different components. Learn what these five components are.
The Great Real Estate Myth
Real estate isn't a bad investment, but real estate investments won't likely generate as high of returns as stocks over long periods of time.
Revenue Recognition Methods
This article explains the difference between revenue recognition methods and the practical implications for the average investor.
The Limitation of the Debt to Equity Ratio
The debt to equity ratio has limitations and doesn't always reflect economic reality. This article can help you discover why the debt to equity ratio is limited in its functionality.
Vendor Financing - Reducing Investment in Working Capital
The second page of this article on the limitations of the debt to equity ratio explains how vendor financing and a reduction in the working capital investment can increase the apparent risk of an investment despite the fact that it is good for shareholders in economic reality. Read more about vendor financing and the debt to equity ratio. Page 2.
Look-Through Earnings - The Value of Retained Earnings and Cash Dividends
Billionaire investor and Berkshire Hathaway Chairman and CEO Warren Buffett urged investors to calculate what he called the look through earnings of their portfolio. This article explains how to calculate look through earnings and reveals why they are important to your investing success.
Warren Buffett's Letters to Shareholders
Warren Buffett's shareholder letters to his fellow Berkshire Hathaway stockholders have come to occupy an important place in business and finance.
Straight Line Depreciation Method
The straight line depreciation method is the most basic depreciation method used on an income statement. Let me teach you to calculate the formula.
Guide to Investing in Gold Coins
Investing in gold coins can be a great way to physically hold bullion so I wrote this guide to the different types of gold coins investors might want.
The Old Paradigm of the Company Man or Woman is Dead
In the past, you could simply work for a company as a company man or woman and have a pension, benefits, health insurance, and decent wages. Today, that is no longer the case. Yet, you can still be successful.
Calculating Receivable Turns on the Balance Sheet
To calculate receivable turns, divide credit sales by the average receivables for the period.
The DuPont Model Return on Equity Formula for Beginners
Return on equity, or ROE, consists of three important components under the DuPont model. In this article, I'll teach you how to do a DuPont analysis.
Using the PEG Ratio to Find Hidden Stock Gems
The PEG ratio is a modified form of the price to earnings ratio and can help you factor in the underlying growth in a company's earnings per share to determine its relative value. Many of the most successful investors including Peter Lynch use the PEG ratio to help value stocks.
The 5 Categories of Financial Ratios
It can help your financial analysis to sort financial ratios into five different categories such as leverage, liquidity, and profitability.
Learning How to Analyze an Income Statement
Learning how to analyze an income statement and calculate basic financial ratios is one of the most important skills for an investor or manager.
LLC Operating Agreements for Beginners
All limited liability operating companies, or LLCs, are supposed to be governed by a contract known as the LLC operating agreement.
Stocks vs Index Funds: Which is Right for Your Portfolio?
Stocks vs Index Funds. Both have their advantages and drawbacks, but each one can be utilized effectively if you understand the differences.
What is an Equity Fund? Definition and Types
Equity funds are a type of mutual fund that has a mandate requiring the portfolio manager to invest the shareholders' money in equities, or common stocks.
Starbucks Franchise Value
The Starbucks franchise is an example of an excellent business. This article discusses the value of the coffee company and its performance as an investment.
Cost of Goods Sold (COGS) on the Income Statement
Cost of goods sold, shorthanded as COGS, is the expense a company incurs to manufacture, create, and deliver a product to its customers or clients.
Introduction to Over-the-Counter Options
Over-the-counter options, or OTCs, pose unique risks not only to those who speculate with them but to the global economy and capital markets.
Family Limited Partnerships 101
A family limited partnership is a legal structure that allows family members to contribute to a central fund and take on larger investments. Learn more!
Capital Gains Tax Holding Period Lengths
This article explains the capital gains tax rate for each of the three holding periods the IRS recognizes.
What Is Volatility?
As an investor, you are likely to hear about volatility and the volatility index. Let me explain how volatility influences investor behavior.
Registered Investment Advisor Fees
If you hire an asset management company or wealth management advisor, it's important to understand the fee schedule and what you're charged.
Getting Rich by Investing in an Excellent Business
Investing in an excellent business is one of the smartest things you can do if you want to be rich. Here are some signs of an excellent business.
Should You Manage Your Own Investments?
Most investors need professional assistance in building their portfolio? How can you know if you should be managing your own investments or whether you need to turn the job over to a professional?
What Is an Investment Mandate?
An investment mandate is a general philosophy or list of restrictions or permissions about how a pool of capital can be invested or put to work.
3 Ways to Supercharge Your Retirement Savings
Building your retirement savings can be a lot easier with these three investing strategies to lower your taxes and up your contributions.
Investing in Foreign Bonds Can Be Dangerous
Investing in foreign bonds might subject the owner to currency and political risk, making them more dangerous than investing in domestic bonds.
The Basics of Investing In Preferred Stock
Investing in preferred stock has different risks and rewards than common stock due to higher interest rate sensitivity and limited profit potential.
10 Financial Resolutions for the New Year
The New Year is a great time to overhaul your financial life. These financial resolutions will help you take control and reach your goals.
Tests of Safety for Tax-Free Municipal Bonds
One way to protect against loss when investing in municipal bonds is to run each tax-free municipal bond through a series of quantitative safety tests.
Additional Tests of Municipal Bond Safety You Might Want to Consider
This summary of minimum standards for investing in tax-free municipal bonds provides a summary framework for conservative investors. Page 2.
Secrets to Building a Great Fortune
This light-hearted guide to amassing your own fortune will identify some of the similarities that led to these enormous stores of capital.
What Is a Bond Coupon and How Did It Get Its Name?
The term bond coupon is an anachronistic holdout from the past when bond certificates had physical coupons attached that investors would deposit.
Junk Bonds - The Sexiest Bond Investment You Should Avoid
Junk bonds are debt issues with a bond rating of BB or less and typically offer much higher interest yields to compensate for higher default risk.
Understanding Your 403(b) Plan
Wonder how the 403(b) plan works? It's a type of retirement plan for employees of non-profits, educational institutions, and self-employed ministers.
How Investment Grade Bonds Can Help You Avoid Credit Losses
When buying bonds for your investment portfolio, stick to investment grade bonds as temptation to pick up junk bonds can lead to losing money.
Mutual Funds Can Cause Big Tax Payments In Bear Markets
Investors that hold mutual funds outside of a tax-advantaged account may receive a rude awakening when they see their year-end tax documents.
Focus on Risk-Adjusted Rates of Return on Your Investments
Learn how to calculate your risk adjusted rate of return and how the concept can help you weed out artificially high potential investment gains.
How to Make Money by Creating Passive Income
Discover how to use passive income to your advantage, earning you financial independence, and freeing you to spend your time on the things you love.
Cash Carry and Financing Your Investments
Cash carry is an investment technique utilizing borrowed money to leverage returns while the asset cash flows make the required payments on the debt.
Warren Buffett Biography: Influence of Benjamin Graham
Benjamin Graham had a tremendously powerful impact on young Warren Buffett during his years at Columbia University. Graham instilled the tenants of value investing to the future billionaire and Chairman of Berkshire Hathaway. Page 2.
Warren Buffett Biography - Berkshire Hathaway
This biography tells the story of how Warren Buffett gained control of Berkshire Hathaway through his investment partnership. It includes information on Mr. Buffett's cost basis, the purchase of National Indemnity and See's Candy. Page 3.
Warren Buffett Biography - Berkshire's Charitable Giving Program
This Warren Buffett biography features an explanation of Berkshire Hathaway's charitable giving program, the purchase of Scott Fetzer, Nebraska Furniture Mart and more. Page 4.
Warren Buffett Biography - The Crash of 1987, Coca-Cola and the Solomon Scandal
Buffett bio explaining how the Berkshire billionaire rode out the crash of 87 and bought Coke stock on the cheap. Page 5.
Why Wal-Mart is Good for America (and Maybe Your Portfolio)
An open letter to Wake up Walmart or wakeupwalmart.com regarding the company's demands for higher associate pay and health benefits and explaining why Wal-Mart is valuable to the American economy.
Why Wal-Mart is Good for America (and Maybe Your Portfolio) Part 2
Part two of the article explaining why Wal-Mart is good for America and its critics have underestimated its role in improving productivty. Page 2.
Why Wal-Mart is Good for America (and Maybe Your Portfolio) Part 3
The final installment of an article explaining why Wal-Mart is good for the American economy despite charges against the company for not paying health benefits and high enough wages. Page 3.
The Value of Stocks without Dividends
This explanation will help you understand why stocks that do not pay dividends can still offer tremendous value for shareholders.
Understanding Your Rollover IRA
When you change jobs, one option is to move your old 401(k) plan into a rollover IRA with a brokerage firm. This offers several advantages because a rollover IRA will allow you to invest in stocks, bonds, mutual funds, and other assets that are not available through most employer sponsored retirement plans. At the same time, you get to enjoy the tax benefits of a retirement plan by compounding your wealth out of the grasp of Uncle Sam.
Use the Berkshire Hathaway Wealth Model in Your Life
Learn how to apply one of the secrets behind the success of Berkshire Hathaway and its rise from an $8 stock in the 60's to more than $118,000.
What Is a Stock Exchange? Definition & Explanation
A stock exchange is a place or electronic market where owners of businesses get together to buy and sell their shares of stock.
Long-Term Investments and Assets on the Balance Sheet
Long-term investments and long-term assets on the balance sheet are assets a firm expects to hold for more than twelve months.
Minority Interest on the Balance Sheet
What is minority interest on the balance sheet? Learn what it is, how it works, its history, and more in this investing lesson.
Securities Investor Protection Corporation - SIPC
The Securities Investor Protection Corporation, or SIPC, was designed to protect investors from the bankruptcy of a broker or dealer.
How Scrooge McDuck Taught Me to Be Rich - Part 4
McDuck always understood the importance of integrity and ethics. That's why, despite his wealth, Uncle Scrooge was never willing to violate his own sense of right and wrong for an extra dollar. Page 4.
Reducing Risk 101
There are two things you can do to do to begin reducing risk to your cash flow statement, both of which are easy but require a shift in your thinking.
Reducing Risk 101 - Tips and Techniques for Reducing Risk - Part 2
There is more to risk reduction than merely diversifying your assets, although that's a good start. Prudent risk reduction requires diversified cash generators as well as decent insurance coverage. Page 2.
Before You Open a Brokerage Account
Before you open a brokerage account, you need to learn the difference between a traditional and discount broker, the benefits and costs associated with each, and which one fits your style or personality.
Intro to Stock Trading - Market Orders
A market order tells your broker to execute your trade at the prevailing market price. Market orders are the easiest and simplest type of stock trades.
Intro to Stock Trading - Stop Order & Limit Orders
Stop orders and stop limit orders are used to systematically lock in profits while protecting against decreases in the price of a stock. Stop orders and stop limit orders often require an investor to pay an additional commission. Page 5.
Keep Turnover Low and Minimize Frictional Expense
Portfolio turnover and frictional expenses can cost investors millions of dollars without them even realizing it. Discover why a good portfolio is often one that has low turnover and almost no frictional expenses.
Use the Tax Law to Your Advantage
Taking advantage of tax low to improve your investment returns is an important strategy to beating the market. For more information on the tax law and beating the market, check out the remainder of this ten part step by step article.
Commit to a Value Investing Philosophy
History has proven that value investing leads to higher market beating returns than alternative methods of investing. Great value investors such as Martin Whitman, Warren Buffett, Charlie Munger, Peter Lynch, Ron Muhlenkamp, Eddie Lampert, and Wally Weitz have proven that the relationship between owner earnings and the price paid is the biggest factor in one's ability to consistently beat the market.
To Beat the Market, View It as a Stock
In the article by the same name, To Beat the Market, View It as a Stock, I showed you how to view your portfolio as a single equity and the stock market index of your choice the same way. You could then compare each the earnings, debt levels, growth rate, returns on equity, sector compositions, etc. of each “stock”.
Know When to Throw in the Towel and Buy an Index Fund
Statistically, most people are doomed to compound their capital at a rate lower than the market as a result of frictional costs, and even more expensive, emotional losses caused by gut reactions such as selling in a crashing market or buying during a bubble. In this case, the timeless advice “Know thyself” is worth its weight in gold.
In Investing, Smaller is Normally Better
Generally speaking, it’s better to invest in small and medium size companies than large businesses. The reason is simple: It is ordinarily far easier to grow earnings at 15%+ on a small base of, say, $50 million than it would be on a base of $10 billion. Wal-Mart has pointed out that in order for it to grow at an even remotely acceptable rate, it has to add sales that would, by themselves, create a Fortune 500 company.
Don’t Confuse Growth Rate with the Rate of Your Compounding
Don't confuse the growth rate of a stock with the rate at which your investment will grow because the price you pay for the stock is the most important determinant of your return.
How You Hold Your Investments Can Be a Multi-Million Dollar Decision
Different accounts have different tax characteristics under the law. In a Traditional IRA, for example, you can deduct the contributions you make from your income taxes, the money will grow tax-free until you withdraw it, when you will be taxed on the gains as they are distributed. A Roth IRA, on the other hand, does not permit you to deduct the contributions from your income taxes, but the money that grows in the account will never be taxed according to current law.
The Basics of Shorting Stock
Shorting stock allows speculators to profit from falling stock prices by buying borrowed stock and selling it at what they hope is a lower price.
Valuing Cyclical Stocks
Assigning intrinsic value to businesses with unsteady earnings can be difficult. Cyclical stocks should be valued based on earnings for the past 10 years.
Roberto Goizueta Kept Things Simple
Just like Warren Buffett who often advises us to keep it simple stupid, Robert Goizueta understood the power of simplicity. In fact, keeping things simple is one of the most important and powerful business lessons that any of us can learn.
Robert Goizueta Knew How to Take Calculated Risks
When Roberto Goizueta launched Diet Coke it was a calculated risk that paid off for the Coca-Cola company. Unfortunately, it also caused sales of Coke's then-diet product, Tab, to decline and virtually destroyed the brand. Yet, this calculated risk on Diet Coke helped propel Goizueta to new heights as the CEO of the Atlanta, Georgia based soda firm.
Roberto Goizueta Understood Politics and Networking
Networking and social contacts are extremely important to your professional career. Coca-Cola Chairman and CEO Roberto Goizueta understood this during his time at the helm of the soda company and would often strategically write or send gifts to those with whom he wanted to cull favor.
Roberto Goizueta Knew the Super Power of Incentive in Setting Compensation
Roberto Goizueta understood the power of compensating the behavior you want to reward. As we already discussed in the section dealing with return on capital, Goizueta measured management success as a specific return above a hurdle rate established by Coca-Cola headquarters for use of the money. The super power of incentive is the great key to unlocking value for owners, shareholders, and managers.
Lessons You Can Learn from Roberto Goizueta
Goizueta amassed a great fortune and made his shareholders extremely wealthy through simple, disciplined, and focused capital allocation processes.
Roberto Goizueta Worked for Himself and Viewed Stock as Ownership in a Business
When Roberto Goizueta came from Cuba to the United States following the rise of Fidel Castro, he had only $200 and 100 shares of Coca-Cola stock in a trust account in New York. When he died, those shares had grown into an enormous fortune and he never sold a single share, instead letting his earnings and dividends compound.
Roberto Goizueta Wasn't Afraid to Look Foolish
In other words, Roberto Goizueta was a learning executive. Whether you’re a small business owner, middle manager, auto mechanic, schoolteacher, or police officer, the ability to constantly improve your skill set by dedicated, disciplined, and focused learning can make the difference between a dead-end career and a rapid ascent to greater positions of power. You must be willing to risk looking foolish to become knowledgeable.
Robert Goizueta Treated Return on Capital as Gospel
Roberto Goizueta focused ruthlessly on return on capital during his tenure as Chairman and Chief Executive Officer of the Coca-Cola company in Atlanta, Georgia. He knew that the company would rise or fall based on the return earned on shareholders' equity and charged his operating managers a cost of capital based on an economic value added model. Goizueta then used the excess funds generated to repurchase shares of stock in the market.
Robert Goizueta Recovered from Disaster
Everyone remembers the New Coke fiasco? Coca-Cola emerged stronger because of it. Americans, and indeed those throughout the world, were suddenly forced to realize just how much they loved the Coca-Cola they grew up with that had become such an integral part of Friday night football games, movie showings, backyard barbeques, and family get-togethers. Never forget that you can turn disaster into opportunity just like New Coke.
Robert Goizueta Kept a Scientific Viewpoint
Roberto Guizeta understood that you must not manipulate facts to fit your own world view, but instead follow them to their own logical conclusion and rationally judge the implications, as Charlie Munger might put it. This is one of the reasons that Guizeta was so successful at Coca-Cola and is continually revered today in the halls of business schools throughout the globe.
Calculating the Enterprise Value of a Company
Enterprise value is the takeover value of a company calculated by adding market capitalization, preferred stock, and total debt together minus cash.
Worldcom's Magic Trick - The Worldcom Scandal Explained
At its core, the Worldcom scandal can be explained by understanding how the CFO capitalized costs that should have been expensed.
Worldcom's Magic Trick - Consequences for Investors
Part two of this article on the Worldcom scandal explaining how CFO Scott Sullivan hid almost four billion dollars through manipulation of accounting rules. Page 2.
What Is a 10-K and Why Should an Investor Read It?
The Form 10-K filing is a legal disclosure document publicly traded companies must send to the SEC that is invaluable to stock and bond investors.
Payable on Death Accounts Can Increase FDIC Insurance
You can increase your FDIC insurance limits from $250,000 to $1,250,000 if you utilize a payable on death designation.
Don't Increase Your Risk by Lowering Your Liquidity
Paying off your mortgage early is an admirable goal but it should never come at the expense of your liquidity reserve or emergency fund.
What Are The Dangers of This Approach to Debt and Liquidity?
Maintaining a large liquidity reserve or emergency fund while you still have debt might be a mistake for those with spending problems. Page 2.
The Quotes and Wisdom of Warren Buffett
Quotes and sayings by Warren Buffett, the Chairman of Berkshire Hathaway.
The Basics of Mutual Funds
Mutual funds have made investing easier for millions of Americans. This article explains mutual fund basics, benefits, and selection.
What Is a Broker-Dealer?
A broker-dealer is one of two major types of entities in the financial industry in the United States, the other being a registered investment adviser.
Investing Advice from a 1920s Wall Street Book
I'm reading a marvelous 80+ year old book called Where are the Customers' Yachts? that has gone through several reprints and long served as a warning against
What Is a Safe Retirement Withdrawal Rate?
There has been some debate about whether a safe withdrawal rate in retirement is 3% or 4%. The answer depends on the investment fees and expenses you pay.
Different Types of Investments
Learn about the most common investment types - stocks, bonds, mutual funds, real estate, and more - plus what to do in a bad economy.
What is a Brokerage Trade Confirmation?
A trade confirmation is a document that shows which of your securities were bought or sold, the total cost, commissions, and exchange processing fees.
5 Reasons to Consider Investing in Dividend Stocks
There are some major advantages to owning and investing in dividend stocks, partly because of the behavioral reinforcements they provide.
Six Secrets To Building a Successful Investment Portfolio
There are six things you should consider doing if you want to build a successful investment portfolio.
5 Types of Investments New Investors Should Avoid
When you begin investing, there are five investments you should consider avoiding until you have more experience and have reached a certain level of sophistication.
Why Dividend Stocks Outperform Non-Dividend Stocks
Dividend stocks vs. non-dividend stocks? Dividend paying stocks have a long history of earning greater shareholder returns than non-dividend stocks.
A Roth IRA Is the Perfect Tax Shelter
When it comes to tax shelters, the Roth IRA is the best type of account available to virtually all middle class investors.
Potential Pitfalls of Global Investing Through a Roth IRA
If making global investments through your Roth IRA, here are a few things you might want to watch out for to save yourself financial trouble.
6 Signs You May Have Found a Cheap Stock
Wanting to find a cheap stock? Here are six signs that have historically correlated with above average returns.
Increase Your Annual Income Each Year With Dividend Stocks
Where else in life but dividend stocks can you get pay raises in your passive income so consistently and a rate higher than inflation?
3 Bond Investing Strategies for Long-Term Investors
There are three major things a bond investor can do to help preserve his or her portfolio and generate good returns on capital.
Why Are Equity Funds Useful in an Investment Portfolio?
Should equity funds have a role in your family's investment portfolio? For the average person, the answer is probably a resounding yes.
3 Mistakes Equity Mutual Fund Investors Should Avoid
There are a handful of common mistakes made by equity mutual fund investors that you should want to avoid at all costs!
What Is Opportunity Cost?
What Is a 401(k) Contribution Limit?
You can't just save as much money as you want in your 401(k) because Congress has put contribution limits on your annual elective deferrals.
Increasing Earnings Per Share with Share Repurchases
Share repurchases can increase earnings per share by reducing the number of shares outstanding, resulting in profit being split in fewer pieces.
Earning Yields and the P/E Ratio of Blue Chip Stocks
We take a look back and discover that shareholders in Home Depot did very well despite the real estate collapse. The lesson here is about valuation.
Why Focus on Price to Cash Flow Ratio?
Professional investors prefer to focus on a financial ratio known the price to cash flow ratio instead of the more famous price to earnings.
What Is a Balance Sheet, and How Is It Analyzed?
How does a corporate balance sheet differ from a personal one? At its core, it's all about assets and liabilities.
McDonald's vs. Wendy's - Analyzing a Balance Sheet
Calculating inventory turnover, or inventory turn, is a useful skill so let's practice with historical balance sheets from McDonald's and Wendy's.
Understanding Stock Repurchase Plans
A stock repurchase plan is one way a company can return money to shareholders without causing dividend tax liabilities.
Look for an Experienced, Disciplined Management Team
When selecting a mutual fund you want to look for one with an experienced disciplined management team. Even better, you want that experienced disciplined management team to have a substantial portion of their own net worth invested in the funds they manage.
A Guide to Picking Winning Mutual Funds
This article explains how to successfully pick good mutual funds. On this page, we discuss why you should always buy no-load funds.
Pay Attention to the Expense Ratio – Mutual Funds
A mutual fund expense ratio is the percentage of assets it takes to pay for the operating expenses of the fund. When selecting a mutual fund the expense ratio is one of the most important things to look at and compare.
The Case for Index Funds
Index funds combine rock bottom low expense ratios with low turnover ratios and widespread diversification. That's why index funds are often able to outperform actively managed mutual funds. Learn more about index funds and how they can make sense for your portfolio.
A Word on International Funds
International funds can be a great addition to your portfolio but because of the additional expense and currency exposure they can also introduce additional risk. To find out more about international funds check out this article on how to select the best mutual funds.
Turning $10 a Week Into a $10 Million Fortune
A small business owner can build wealth by investing a small amount of money regularly and letting compounding do the heavy lifting.
Cash Account vs Margin Account
There are two types of brokerage accounts you can open, a cash account and a margin account. A cash account is safer but margin accounts are convenient.
Rehypothecation Could Be the Next Major Investment Disaster
Rehypothecation refers to a broker or financial institution pledging as collateral assets that have already been hypothecated from clients.
How to Pay No Taxes on Your Dividends or Capital Gains
A majority of American households can now pay no taxes on dividends and capital gains thanks to recent changes in the tax code.
Who Inherits Your Investment Portfolio If You Leave No Will?
If you die without a will you are going to have to rely on the laws of intestate succession and beneficiary designations to divvy up your assets.
Corporate Board of Directors Explained
A corporate board of directors is the highest governing body within a joint stock corporation and is made up of elected directors protecting owners.
If You Spend Your Child's UTMA Money, You're Probably Breaking the Law
If your son or daughter is willing to sue you for spending their UTMA, you could end up in jail or ordered to pay restitution for stealing from them.
7 Lessons Investors Can Learn on Warren Buffett's 85th Birthday
In addition to being a great investor, Warren Buffett is a brilliant strategist who can exploit things for his own advantage.
Stable Value Funds in Your 401(k) Account
A stable value fund is a type of investment option found in 401k plans or 529 college savings plans meant to provide capital preservation.
Investing Money Held In Trust
Investing money held in trust isn't much different from regular investing in that you're focused on the risk-adjusted income needs of the beneficiary.
The Fiduciary Duty for Investors
There is a difference between a fiduciary duty and a suitability standard. Registered investment advisors are bound by a fiduciary duty, brokers aren't.
How to Set Up a Trust Fund
If you have ever wondered how to set up a trust fund, you're in luck because establishing one isn't as difficult as you might think once you understand it.
A Stop Loss Order Won't Always Protect Your Portfolio
Although they can be a good tool to prevent losses, a stop loss order won't always protect your investment portfolio from disaster or market crashes.
4 Things to Look for In Your Search for a Registered Investment Advisor
The relationship between client and advisor is one of the most important business relationships you'll ever experience. Make sure to get it right.
Form ADV Basics for New Investors
Regulators require Registered Investment Advisors to fill out the Form ADV so you might as well take advantage of the information it contains.
How Much Do You Need To Retire?
You want to quit working someday but how much do you need to retire? Here is a brief calculation technique to let you ballpark the figure.
8 Financial Benefits of Marriage Every Investor Needs to Know
There are significant financial benefits to being married governing everything from inheritance rights to pensions and retirement accounts.
Watch Out for Value Traps
A value trap is a situation that looks attractive to investors at first glance but has a high probability of generating big losses due to some factor.
Inherited IRA Rules You Need To Know
An inherited IRA has different rules and withdrawal schedules than a normal IRA that you open for yourself under most circumstances.
Investing Under 30
When you begin investing under 30, you give yourself an enormous advantage as your portfolio has more time to compound and accumulate wealth.
Asset Management Companies for Beginners
An asset management firm is a company or partnership that manages investor funds by putting money to work in asset classes such as stocks or bonds.
How Does Global Custody Work?
Global custody accounts are a special type of account at a financial institution holding assets such as stocks, bonds, and other securities on behalf of the owner, keeping them safe from theft, fire, and disaster.
How the Stepped-Up Basis Loophole Works
The stepped-up basis loophole allows inherited property such as stocks and real estate to enjoy much lower capital gains taxes than they otherwise would.
Will the White House Put Account Limits on Your Roth IRA?
The White House has asked Congress to put a maximum account balance on Roth IRAs and Traditional IRAs, which could impact your retirement planning.
Traditional IRA Rules for Tax Year 2014
It's not too late to take advantage of the contribution limits under the Traditional IRA rules for 2014.
Sometimes the Best Long-Term Investments Are Hidden in Plain Sight
Sometimes, the smartest thing to do is to stop attempting to be clever and, instead, just write a check for more shares of Coca-Cola, or Clorox, or Hershey.
Roth IRA Rules for 2014
With the April 2015 deadline approaching, investors who want to know the Roth IRA rules for 2014 contributions can start here. There is still time to take advantage of the tax shelter before last year's books are closed for good!
What Is the Prudent Man Rule or Prudent Investor Rule?
The prudent investor rule is a concept from the 1830's that dictates how fiduciaries must invest the money entrusted to their care.
Improving Your Personal Happiness with Time Value of Money Formulas
Here are two must-know time value of money formulas that allow you to make better financial decisions when spending money in your own life.
How to Calculate Earning Assets to Total Assets Ratio
The earning assets to total assets ratio tells you how much of a balance sheet consists of assets that generate income. It is often used by banks.
Choosing Between Roth IRA and Mutual Funds
Many new investors ask me if about investing in a Roth IRA vs mutual funds but the question itself is flawed because a Roth IRA is a type of account.
What Is Capital Preservation and Why Is It Important?
The term capital preservation is used for investors who need to protect their money and cannot accept a small loss as they plan on spending the funds.
Investments Best for a Capital Preservation Portfolio
When you want to keep your money safe, building a capital preservation portfolio is the only way to go as you cannot afford risking any losses.
How to Tell When a Stock Is Overvalued
New investor? There are four quick-and-dirty calculations to determine when overvalued shares of a company are too expensive relative to earnings.
3 Things to Consider In Balancing Asset Class Exposure
Here are three things to consider when determining your asset class exposure between stocks, bonds, cash, real estate, and other asset classes.
What Is the Direct Registration System for Stocks?
The Direct Registration System, or DRS, is a way for investors to hold stocks directly rather than through a street name or paper certificate.
Top Alternatives to Money Market Mutual Funds
Here are five alternatives to money market funds if you are looking for ways to invest your surplus cash in between investments.
Use the Rule of 72 to Estimate Compound Interest
By learning and using the Rule of 72, quickly estimate the years it would take to double your money or calculate the required rate of return.
The Top Line vs Bottom Line
The top line and the bottom line of an income statement refer to different things. Usually, the top line is sales and the bottom line is net income.
Certificates of Deposit versus Money Markets
Certificates of deposit and money markets have different pros and cons. Which is right for you? Let's take a look at the benefits and drawbacks.
Importance of Liquidity and Liquid Assets
Understand what liquid assets are, where you should keep them, and their importance, along with guidelines for how much you should keep on hand.
Determining a Company's Dividend Payout Policy
Determining a dividend payout policy is one of the major responsibilities of a company's board of directors. Here are some considerations.
Traditional IRA and Roth IRA Contribution Limits
IRA contribution limits vary by year and age. This article charts the maximum allowable contribution to your IRA each year.
Rejoice in the Next Stock Market Correction
The next stock market correction could be excellent opportunity to purchase common stocks at bargain levels. This article explains how to use it.
Should You Pay Off Your Debt or Invest?
Should you pay off your debt or save money to invest first? Here are some thoughts on the best answer to an age-old question.
Love and Money - The Importance of Financial Compatability
Love is complex enough but when you add money, it only gets more complicated. Understanding financial compatibility is key to a successful relationship.
You're Spending Your Millions $1 at a Time
The time value of money is a concept that tells you one dollar today is more valuable than one dollar a year from now.
9 Tips for Investors
These nine financial keys will help you get on the road to financial freedom, build wealth, and become rich.
How to Become Wealthy in Nine Steps
These nine financial keys will help you get on the road to financial freedom, from studying the success of others, to stop worrying about finances. Page 2.
Accounts Receivables on the Balance Sheet
Accounts receivables are found on the balance sheet and represent money a business is owed by its customers for products or services sold.
Investing Lesson: Analyzing a Balance Sheet
Learning to analyze a balance sheet can pay dividends for life as you discover ways to gain insights into a business and the way it funds itself.
Analyzing Microsoft's Balance Sheet
To understand the balance sheet it is easier to analyze a real company. In this example, we do balance sheet analysis on Microsoft.
Annual Reports, the 10K, and the 10Q Filings
A company's balance sheet can be found in its annual report, Form 10-K, and Form 10-Q. Here are some reasons you should make it a habit to read them.
Assets, Liabilities, and Shareholder Equity Explained
A balance sheet is divided into three sections consisting of assets, liabilities, and shareholder equity. Here is a sample Coca-Cola balance sheet.
Understanding the Balance Sheet - Table of Contents
I put together this table of contents to help you navigate my investing lesson on learning to analyze a balance sheet.
Book Value and Net Tangible Assets
Book value, or net tangible assets, is not the same thing as shareholders' equity. Book value can be calculated using the balance sheet.
Capital Surplus and Reserves - Investing Lesson
Reserves in the shareholders' equity section of the balance sheet can arise for a number of reasons including retained earnings and hedging.
Common, Preferred, and Convertible Shares
Common Preferred and Convertible Shares are carried on the balance sheet. Learn more in Investing Lesson 3
What Are Current Assets Found on the Balance Sheet?
Current assets on the balance sheet represent cash, cash equivalents, short-term investments, and other assets that can be quickly converted to cash.
Current Liabilities on the Balance Sheet
Current liabilities on the balance sheet are the debts a company owes for the next twelve months to suppliers, vendors, banks, and other institutions.
Deferred Long-Term Asset Charges
On a balance sheet, deferred long term asset charges are used to spread out asset charges over longer periods of time as opposed to expensing them.
Formulas and Calculations for Analyzing a Balance Sheet
Balance sheet ratios and formulas you need to know include working capital, receivable turnover, inventory turnover, and the quick ratio.
Accounting Goodwill - Analyzing a Balance Sheet
Goodwill on the balance sheet represents the price paid for an acquisition over and above book value. Goodwill is sometimes called blue sky.
Intangible Assets on the Balance Sheet
Intangible assets on the balance sheet consist of things such as patents, rents, royalties, trademarks, and copyrights that don't have physical form.
How to Analyze Inventory on the Balance Sheet
Inventory carried on the balance sheet consists of goods or merchandise a company has but may not yet have sold to customers.
How to Calculate Inventory Turnover and Inventory Turns
Inventory turns/turnover are easy financial ratios to calculate and determine gross profit using info from the income statement and balance sheet.
Long-Term Debt and the Debt-to-Equity Ratio
Long-term debt-to-equity ratio consists of data found on the balance sheet, and represents an important insight into a firm's leverage.
Other Liabilities on the Balance Sheet
Other liabilities on the balance sheet represent items such as accrued expenses, sales tax payable, or other debts.
Prepaid Expenses and Other Current Assets
Prepaid expenses on the balance sheet represent a current asset because the company has the right to receive the product or service for which it paid.
Putting It All Together - What the Balance Sheet Can and Can't Do
The balance sheet financial ratios are important parts of valuing a stock or analyzing a small business.
Shareholders' Equity on the Balance Sheet
Shareholders' equity is the difference between total assets and total liabilities on the balance sheet.
Treasury Stock on the Balance Sheet
Treasury stock is listed under shareholder equity on the balance sheet. It represents the stock a company has issued and subsequently reacquired.
Invest in What You Know
Investing in companies you are familiar with and understand is one of the keys to success in the stock market. Often, a trip to the mall or shopping center can yield investment ideas.
The Perils of the Commodity Business
A commodity business, which is dangerous for investors, is one that competes on the basis of price not an intrinsic traits of its product or service.
What Is Insider Trading and Why Is It Illegal?
Insider trading is a crime resulting from an attempt to profit, or avoid losses, using non-public information by those who have a fiduciary duty.
How to Calculate Working Capital on the Balance Sheet
Working capital on the balance sheet is calculated by taking current assets and subtracting the current liabilities.
Annual Reports - What They Are and Why Investors Care
An annual report is a document prepared by a company's management for stockholders, explaining the financial performance and business model.
What Is the Definition of Inflation?
It is important for investors to know not only the definition of inflation, but how inflation can hurt your portfolio as well as ways to combat it.
How to Calculate Compound Annual Growth Rate or CAGR
In order to evaluate investment performance, you must learn how to calculate total return and compound annual growth rate, or CAGR for short.
What Is an Investment Bank?
Many investors are not familiar with an investment bank and how it differs from the more traditional commercial bank.
The Three Primary Types of Financial Capital
The three types of financial capital - equity, debt, and specialty - are important for you to know when analyzing and evaluating your business.
Yankee Candle Company - An Investment Case Study
A case study of Yankee Candle Company and its common stock focusing on shareholder value and share repurchases.
Long Term Treasury Bond Yields vs. Earnings Yields
It is possible to use the risk premium - that is, the spread between long-term bond yields and earnings yields - to gauge the relative value of the stock market.
Is a Full Service Broker Right for You?
How do you know if the extra costs of a full service broker are right for you? For novice investors with sufficient assets, these relationships can be beneficial because they protect them from the urge to buy or sell at the wrong time.
How to Negotiate a Credit Card Debt Settlement
Learning how to negotiate a credit card debt settlement isn't hard but it can be a stressful process. Here are some basics to help you as you start.
Advantages of Share Repurchases
Which is better for your portfolio as an investor - cash dividends or share repurchases designed to increase earnings per share? This article discusses the pros and cons of dividends and share repurchases and can help empower you to make an informed decision.
Cash Dividends vs. Share Repurchases Part 2
Part two of an article discussing dividends versus share repurchases and stock buy back plans. Which one is better for your portfolio? This information can help provide a framework to think about both cash dividends and share repurchases. Page 2.
The Dividend Trap of Low P/E High Dividend Stocks
A dividend trap is a phenomenon when a stock price declines more quickly than earnings, causing the p/e ratio and dividend yield to become distorted.
What Is a Hedge Fund?
Have you ever wanted to ask,
What Is the Quiet Period on Wall Street?
The quiet period on Wall Street refers to the four weeks leading up to the release of company financial, operating, or material information.
Applied Value Investing 101
Legendary investor Philip Fisher, who wrote Common Stocks and Uncommon Profits, talked about an approach to value investing known as the Scuttlebutt.
Tax-Free Spin-Offs vs Sale of Subsidiaries
Are tax-free spin-offs better for your portfolio that the sale of a subsidiary or subsidiaries for cash? What are the tax effects of spin-offs?
The Key to Finding Stocks that Will Make You Rich? Focus on Return on Equity
Over long periods of time, the performance of a stock most closely correlates with the return earned on shareholders’ equity. That's why investors that want to do well should focus on return on equity or ROE combined with a reasonable price.
Making Money By Investing in Stocks of Bad Companies
You can sometimes make a lot of money investing in the stock of bad businesses due to a phenomenon that has to do with operating leverage.
Secular Bull and Secular Bear Markets
In this article, you'll discover how to define a secular bull market or secular bear market and what they mean for your portfolio.
Investing in Gold With Canadian Gold Maple Leaf Coins
Canadian gold maple leaf coins are guaranteed in purity by the Canadian Government and serve as the official gold bullion coin of Canada.
What Is the Definition of a Blue Chip Stock?
The definition of a blue chip stock centers around quantitative and qualitative characteristics, such as returns on capital and the dividend record.
What Is a Bond?
Bonds are long-term debt sold to investors by companies. The proceeds of the bond issue are used for many purposes, including operational expansion.
What Is a Stock Split for Investing?
Have you ever asked, what is a stock split? A stock split is an accounting technique used to decrease the quoted market value of each share.
Traditional IRA versus Roth IRA
The Roth IRA and the Traditional IRA both have pros and cons so here's a rundown of each to help you decide which is right for your retirement plan.
What is the NASDAQ? - Overview
The NASDAQ is an electronic exchange where stocks are traded through an automated network. Learn how it was created, its market tiers, and more.
SIMPLE IRA Plan for Small Business Owners
The term Simple IRA is actually an acronym for Savings Incentive Match Plan for Employees Individual Retirement Account. It is designed to be more affordable to maintain than other retirement plans. In fact, the Simple IRA can allow a business owner to save and invest more money than they could through an ordinary retirement account.
Collateralized Debt Obligations or CDOs
A collateralized debt obligation is created when a financial institution, such as a bank, takes the debts owed by lots of borrowers, puts them together into a “pool”, divides that pool into different categories based on risk called “tranches” and then sells off those tranches to investors such as hedge funds.
How Falling Stock Prices Can Make You Rich
Falling stock prices can make you tremendously rich if you are prudent about how you invest your capital and the way you mitigate portfolio risks.
How to Increase Profits at a Business
Lately, I've heard people talking about how difficult business is and the problems one faces when building a company or selecting a stock. I want you to remember to focus on simplicity. Increasing the profits of your business really can only be done by focusing on four categories.
Never Stop Contributing to Your 401k
You should never stop contributing to your 401k except in the most extreme, almost unthinkable scenarios.
What Is the Current Estate Tax Limit, Rate, and Exemption?
The estate tax rate and estate tax rate exemptions applied to the assets passed onto your heirs depends upon the year in which you pass away.
What Does It Mean To Own Shares of Stock In a Street Name?
Holding shares of stock in a street name means that the certificates, if any, are registered to your stock broker or custodian.
Understanding A Tracking Stock
A tracking stock arises when a company has shares of stock traded under a separate ticker symbol to represent a segment but that is not separate.
Adverse selection is a concept from insurance that describes when the certain variables cause the least desirable customers to sign up for a service.
Economics of Scale
Economics of scale is a term used to describe the reduction in cost-per-unit as more units are produced, leading to higher profits and efficiency.
What is a Partially Amortized Loan?
A Partially Amortized Loan is a liability or obligation that is partially amortized while the rest is paid at the end of the loan term.
What Are the Series I Savings Bond Annual Purchase Limits?
The United States Treasury enforces Series I savings bond annual purchase limits of $10,000 per individual, though you might be able to get around it.
Warren Buffett's 20 Ticket Punch Card
Warren Buffett tells students and investors they should act as if they have a punch card with only twenty investing slots to improve performance.
The $25,000 Bouquet of Roses - A Lesson in the Time Value of Money
The time value of money can allow you to compare expenditures to the future value of what those expenditures could have grown into if you'd invested.
Value Line Investment Survey
Many great investors swear by the Value Line Investment Survey, which tracks 1,700 individual stocks across ninety different industries.
Different Ways to Come Up with Cash
There are four ways you can come up with cash by simply changing some of your current behaviors. Learn these simple rules to easily fund your investments.
New Investor's Guide to Building Wealth
The new investors guide to building wealth is a collection of articles, resources, and case studies to help you grow rich and generate passive income.
How to Come Up with Money Quickly During Emergencies
If you need to raise money fast during a crisis, there are several ways to quickly get your hands on funds for whatever emergency you are facing.
Saving Money vs. Investing Money
Saving money and investing money are not the same thing. Each has an important part to play in your family's financial life and you should respect it.
Using LEAPS Instead of Stock to Generate Huge Returns
LEAPS, a form of Long Term Equity Anticipation Securities, can be a useful tool for an aggressive trader or investor.
Invest in Stocks by Trading Sell to Open Put Options
By selling open put options it is possible to generate premium income in exchange for issuing a guarantee to purchase shares of stock at a predetermined stock price. This article explains how you can get paid to buy shares of stock that you would have already wanted to purchase by selling open put options. This strategy is not for beginners and should only be carefully considered by working with your financial advisors.
Getting Paid to Invest in Stocks by Trading Sell to Open Put Options - How You Can Get Other Investors to Pay You Cash to Invest in Their Stocks
Part two of this article explaining by selling open put options it is possible to generate premium income in exchange for issuing a guarantee to purchase shares of stock at a predetermined stock price. This article explains how you can get paid to buy shares of stock that you would have already wanted to purchase by selling open put options. This strategy is not for beginners and should only be carefully considered by working with your financial advisors. Page 2.
Why Do Maturity Dates on Series EE Bonds Vary by Year?
Have you ever wanted to know why different Series EE savings bonds mature at different times and dates?
How Do I Invest in Series EE Savings Bonds?
If you've wanted to know how you can buy Series EE savings bond for your portfolio, there are two primary ways to purchase them from the Treasury.
What Are Patriot Bonds?
Have you ever wondered what Patriot Bonds are or how they are different from Series EE savings bonds?
A Guide to Investing in Series HH Savings Bonds
Series HH savings bonds were discontinued on September 1st, 2004, prior to which they could be attained by exchanging maturing Series EE savings bonds.
What to Do if You Lost a Series I Savings Bond
Replacing lost, stolen, or destroyed series I savings bond is nothing to sweat! There are simple guidelines and forms for you to have them replaced.
How Are Series I Bond Interest Rates Determined?
The Series I savings bond interest rate is made up of two components - a fixed interest rate and an inflation modifier interest rate.
How You Title Savings Bonds Can Have Tax Consequences
How you title the ownership of savings bonds can have big tax implications for you and your family. There are three basic ways to record ownership of savings bonds, each with their own unique benefits and challenges.