As investors, learning how to evaluate a stock is extremely important. Proper evaluation of a stock means attempting to value its current and future earnings, examine its place in its industry, the competitive environment around the company and also external stock market conditions. When evaluating an investment, it really comes down to analyzing the future cash flows of … [Read more...] about How to evaluate a stock
For years, the Mega Backdoor Roth IRA was a rarely used tool applicable only to a select number of people and truly understood by even fewer people. With the rise of the gig economy and more and more people have second and third income streams, the Mega Backdoor Roth IRA is more relevant than ever. While a bit more complex than something like a standard 401(k), putting the time … [Read more...] about The Mega Backdoor Roth IRA explained
If you turn on CNBC, typically within a few minutes you’ll hear something along the lines of “The Dow is up 100.” But is what the Dow did today really one of the main stock market indicators that you should be monitoring if you want to be a successful investor? Also, recent history shows us that stock markets can be performing very well right before a major market move … [Read more...] about 5 stock market indicators you should be following
Walmart delivered another great quarter which saw two of the main indicators that move the stock get reported in a positive fashion. Those numbers are US comp sales and ecommerce sales. In simple terms, revenue at US stores is up, and Walmart continues to deliver gains in ecommerce showing that Walmart, at a minimum, isn't getting crushed by Amazon. It's worth noting that a … [Read more...] about Market Brief (Feb. 19, 2019): Is Walmart catching up to Amazon?
The tax cost ratio measures how much a fund's annual return is impacted by taxes that the investors must pay on dividends, distributions and capital gains returned during the year. Like the expense ratio, the tax cost ratio is a variable that investors must consider when choosing which funds to invest in and what types of accounts should hold such investments. It can be … [Read more...] about Understanding the tax cost ratio
Is the stock market for kids? Yes! Sure, it’s unlikely that your kids are going to be managing money and trading actual stocks (at least at a young age), the stock market can be an incredible tool for teaching your kids about math, finance, personal finance and investing. If your kids are older, you can even touch on subjects such as psychology and economics. For quick … [Read more...] about Stock market for kids: Tips and resources for teaching your children about stocks
I've had a number of people ask, what's causing the market volatility? The economy is good! Why would the market be going lower if the economy is good? Unemployment is low, consumer sentiment is still good, corporate earnings are still great, so what gives? For new investors, it's important to always remember that the stock market is a forward looking vehicle. A company … [Read more...] about Market Brief (Dec. 7, 2018): What’s causing the volatility?
As with any article which discusses stock-picking, I want to give my overall investing disclaimer. So, here it is... Investing Disclaimer: I think marketing timing and picking stocks is very difficult. Not impossible, but difficult. I do very little (almost none) trading in short time horizons. Roughly 80% of my portfolio is in a few, simple index funds. I withhold about 20% of … [Read more...] about Why the shift to streaming is my favorite trend, and why I’m long Netflix (NFLX)
Investable assets are a worthwhile consideration for calculating your level of wealth. Net worth is probably more common, but often, some individuals will include things such as their home or automobiles in a net worth calculation. What are investable assets? Investable assets are typically limited to things like cash, funds in bank or savings accounts, retirement accounts, … [Read more...] about Investable Assets: Why you should run hard to the key level of $500,000