What is a custodial account? Custodial accounts refer to savings account or investment accounts at banks, mutual fund companies or financial institutions where a parent or guardian is in control of the account despite the account being owned by the minor (someone under 18 or 21 years of age). Custodial accounts are commonly used by […]
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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 […]
Rate of Return: Everything you need to know about calculating investment returns
Rate of Return: Everything you need to know about calculating investment returns Investors often start out thinking that calculating rate of return is quite simple, but as they begin to calculate returns in more and more scenarios, they begin to see some cracks in how simple they thought it would be. In reality, rate of […]
Everything you need to know about cryptocurrency index funds
For much of the last decade, bitcoin and the world of cryptocurrency has evolved from a strange digital currency favored by hackers, nerds and shady characters to a mainstay on the global financial system. As the price of bitcoin is many times more than it was years ago and as more and more financial products […]
The best index funds to own in 2021
2020 was an unusual and difficult year in many respects. A global pandemic led to economic recession and market turmoil, but the stock market rebounded mightily from its March 2020 lows, and investors are rightfully asking where should they put their money in 2021? What are the best index funds to own in 2021? There […]
A complete guide to the best index funds
A complete guide to selecting and understanding the best index funds What are the best index funds for your portfolio? It seems like a simple enough question, but properly answering it requires a deeper dive into the subject matter. While the huge brokerages such as Charles Schwab, Fidelity and Vanguard continue to offer investors more […]
The best Fidelity index funds for your portfolio
While Vanguard pioneered the low-cost, index funds approach to investing, companies such as Fidelity have largely caught up to the offerings of Vanguard and now enable investors to easily build quality portfolios using the best Fidelity index funds. These Fidelity index funds have low fees and provide baskets of diversified holdings within. Portfolios that utilize […]
Disney Dividend: Analysis, amount and payout schedule
Disney (DIS) investors have long praised the Disney dividend that is paid on a semi-annual basis for shareholders, but have recent moves by the media and entertainment conglomerate put the Disney dividend in a more “back seat” position? As Disney positions itself for the next era of media and entertainment consumption, the company has made […]
Understanding SIPC insurance and how investors use it
SIPC insurance is an extremely important level of protection for investors, yet few investors know much about it. Everyone wants to ensure their assets are protected from losses. While you can’t guarantee that you won’t lose money in the stock market, you do have other ways of keeping your portfolio safe from other risks. Insurance […]
What are the best sports betting stocks?
Sports betting stocks have been in the news quite a bit in 2020 for multiple reasons. First, the sports betting industry has been on fire in the U.S. ever since the Supreme Court struck down the law preventing sports betting back in 2018. The 1992 law had previously prohibited states from authorizing sports betting activity […]
Apple Dividend: Analysis, amount and payout schedule
The Apple dividend is a relatively minor part of being a shareholder in Apple (AAPL), one of the world’s largest company. The company has documented incredible growth over the last decade, fueled mostly by its iPhone business, and the company continues to find ways to deliver value to shareholders. While the Apple dividend is just […]
Understanding disinflation and why it matters to investors
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 […]
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 […]
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, […]