Disinflation is a term you may have heard used in the financial news, especially on topics related to broader economic trends and interest rates. When an economy is experiencing disinflation – or the slowing of price – it means the rate of inflation is slowing. As you’ll learn below, disinflation may sound like a negative […]
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The minimum variance portfolio and why investors might consider it
A minimum variance portfolio seeks an allocation that is able to withstand stock market crashes as a result of acknowledging the limitations of standard measures of risk. Does the minimum variance portfolio make sense for you as an investor? It depends on a number of factors, but even if you opt for more traditional portfolio […]
Understanding profit margin and its different types
Profit margin is an excellent gauge for how well a company is performing, both compared to its own past performance and its peers’ performance. Essentially, this metric is a measure of profitability. Investors and businesses, as well as lenders, often use look to profit margin to help them asses how well the company is being […]
The best Schwab index funds for your portfolio
While companies like Vanguard may have led the low-cost, passive investing revolution over the recent decades, Charles Schwab has quickly caught up and offers comparable offerings to investors seeking a simple portfolio built using the best Schwab index funds. These Schwab index funds offer low fees and diversified holdings. Moreover, portfolios built around simple index […]
What is a good Sharpe ratio? How important is it?
Netflix (NFLX) is a classic example of the value of the Sharpe ratio and a great investment story. By the end of 2002, the year NFLX went public, the company had over a million subscribers and its stock closed at a split-adjusted $0.71 price. At the end of 2019, it had 167 million subscribers and […]
How much does it cost to have a baby when paying cash (without insurance)?
Due to being self-employed and the insanely high cost of traditional health insurance, our family has been on a “medishare” plan now for a few years. For families without chronic illnesses who are mostly healthy, it’s a great option to consider. A year ago, we learned my wife was pregnant, and this would be the […]
Understanding liquid net worth and how to calculate it
Knowing your net worth is valuable for a number of reasons, from helping you plan your next short-term financial moves to preparing you for retirement. When you know your net worth, you have a good sense of your current financial picture, and you can map out your road to your best financial health. Part of […]
Walmart (WMT) Dividend: Analysis, amount and payout schedule
For decades, Walmart (WMT) has been a widely owned stock delivering stellar returns to investors in the form of capital appreciation and dividend payouts. The Walmart dividend has been the focus and a main component of return for shareholders for decades. Walmart is the largest retailer in the world. The company recorded $524 billion in […]
High yield dividend stocks: Performance and their contribution to diversified portfolios
Dividend yields in the stratosphere grab our attention. For example, MPLX’s (MPLX) recent yield was 16% and Energy Transfer’s (ET) was 21%. With the 10-year S&P 500 Index average dividend yield around 2.35% and the 10-year Treasury yield less than 4% for the same period (and less than 1% in the last year), high yield […]
How to find the best Vanguard index funds
Vanguard helped lead a passive investing revolution for ordinary investors, and as such, many investors constantly search for the best Vanguard index funds. For long-term investors, index funds have a lot to offer, from lower cost investing to potentially lower risk and reliable gains. One major advantage to investing in index funds is that they […]
AT&T Dividend: Analysis, amount and payout schedule
AT&T investors have long favored the AT&T dividend for its continuous and regular payments. But recent moves and stock performance have made some investors question the future of the AT&T dividend. AT&T (T) is a major topic in the dividend investing community along with the Disney dividend and XOM dividend. In this article, we will […]
Multi-Step Income Statement: What you need to know
Businesses keep track of their financial information in a variety of ways and for a number of different reasons. The multi-step income statement is a variation of one of the key financial documents that businesses utilize. A company’s management team, as well as its investors and potential creditors, need certain financial data about the company […]
Should I quit my job? 5 important considerations
The question of whether you should quit your job is something many consider, for both good and less-than-ideal reasons. In this article, we’ll look at the question of should I quit my job and give individuals considering a job change a framework to think through this important decision. Your job status is a big deal […]
How much should you save every month?
Saving money is the backbone of financial planning and generating wealth. Without margin between your income and spending, which creates savings, it’s impossible to create wealth. Your savings fuel everything downstream that we typically call financial planning or investment management. It truly all begins with saving money. When asking the question of how much should […]
How to calculate and chart moving averages using Google Finance spreadsheets
Calculating and charting moving averages in Google Sheet is quite simple. By using the GoogleFinance function to pull historical data and a simple average formula, you can build some very handy spreadsheets to monitor your favorite stocks. Let’s look at how to calculate and chart moving averages using Google Finance spreadsheets. First to get started, […]
Preferred Dividends: A complete guide to preferred stock income
While dividend investors are typically quite familiar with the mechanics of dividend investing, preferred stocks that pay preferred dividends are not discussed as frequently. Investors seeking income and lower risk investments might be interested to learn more about preferred dividends. But before we get into specifics on preferred dividends, let’s back up and set the […]
Stock Profit Calculator: Determine your profit from a stock position
When folks look for a stock profit calculator, typically they are looking to quickly determine cumulative return on an investment. This simply tells you your overall return on an investment regardless of the time period in which you held the investment. An annualized return is also useful in that you can compare investments a bit […]
Stock Market Volatility: What it is, how it’s measured and how to manage it
On any given day when the stock market is open, if the broad market indices are down a percentage point or two, you’ll undoubtedly hear about “stock market volatility.” But what exactly is meant by this phrase? Does stock market volatility just describe the market when stocks decline? Or does it refer to a specific […]
How to invest $100k: A complete guide
Do you have $100,000 ready to invest? Great. This article will show you how to invest $100k in a few different ways while considering both the risk and the reward sides of the equation. It’s common for individuals to research how to invest $100k in an attempt to turn that into a much larger sum, […]
The golden cross: Understanding this technical stock market indicator
The golden cross is a commonly referenced technical indicator in stock market analysis when a short-term moving average crosses a longer-term moving average in the positive direction indicating a possible bullish move. While this type of move can be described with a variety of moving averages, typically the golden cross refers to when the 50-day […]
EBIT Formula: How to calculate earnings before interest & taxes
Earnings before interest and taxes (often called EBIT) is a funny term but is a very commonly cited accounting metric in business. The EBIT formula is used to determine and analyze a company’s profitability. EBIT is sometimes referred to as operating earnings or operating profit. Essentially, EBIT is a great way to look at the […]
The Key Determinants of Demand
Businesses need to keep demand for their products as high as possible so that they can grow, but that’s not always easy. The way demand works is complex, with a number of factors affecting it. As we’ll see in this article, the determinants of demand are a crucial factor in business operation and economics. Anyone […]
Asset allocation strategies for young investors
Asset allocation strategies are usually over simplified and are often discussed around two groups of people: those far away from retirement and those either near or at retirement. In typical financial planning, asset allocation shifts towards more and more conservative as you get older and as you get closer to needing the money. As we’ve […]
Sequence of returns risk, explained
Sequence of returns risk refers to the risk of experiencing a bear market early in the life of a portfolio, rather than later, and how that can impact the longevity of a portfolio. This risk is typically mostly associated with a retirement (or distribution) portfolio where the investor is withdrawing money on a regular basis […]
How to double your money: 3 ways to 2x your cash
Investing your money for a solid gain or return is always the goal when deploying capital. But how to double your money? Investing with the goal of doubling your money has a number of important variables such as risk, rate of return and duration of the time required. We’ll look at a few different ways […]