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 to fund lifestyle. The best way to understand … [Read more...] about Sequence of returns risk, explained
In our last of three articles on setting investing rules for ourselves, we're going to tackle the subject of rebalancing your portfolio. Previously, we discussed how to buy individual stocks and knowing when to buy stocks. Our goal with this series is to develop a framework of guidelines and rules to protect you from you. Data shows the best investment returns come with a … [Read more...] about How often and when should you rebalance your portfolio?
For our consideration today, let's group all investors into two categories. Those who contribute money into investments through nothing but an automated contribution system (often taking the form of a 401(k) type plan) and those who contribute money on a non-systematic basis and without a set schedule. Now, it’s worth noting that some investors fall into both camps. Some people … [Read more...] about Investing rules for buying individual stocks
I love using the GoogleFinance functions on Google spreadsheets for tracking and analyzing stock price movement and data. The Google team has made their Google Sheets very handy for stock market analysis and tracking through the simple use of the GoogleFinance function. Using this function, you can pull in live and historical stock price data and perform some nice analysis on … [Read more...] about How to get the high (or low) stock price over a specific date range using the Google Finance spreadsheet formula
Finding stocks for kids to purchase is a worthwhile endeavor, but if you’re like me it doesn’t end there. While I’m absolutely interested in build a stock portfolio for my kids that can earn money and that they can take over eventually, I’m also quite interested in ensuring my kids learn how to invest themselves. And in many ways, teaching your kids about stocks takes much more … [Read more...] about Stocks for kids: How to invest for your kids and teach them to invest themselves
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 huge bets - in many cases, bets that … [Read more...] about Disney Dividend: Analysis, amount and payout schedule
Exxon Mobil is one of the largest companies in the United States and an extremely important company in the energy sector. For investors, the XOM dividend has long been a stalwart of the investment thesis in owning shares of this company. While the XOM dividend has been a long-term consistent and reliable dividend, 2020 has brought unprecedented uncertainty to both the XOM … [Read more...] about XOM Dividend: Exxon Mobil dividend dates, history and projections
Every year you’ll see many best stocks to buy type lists, and certainly, a few months ago there were plenty of articles giving you the best stocks for 2020 to buy. But in just a few short months everything has changed. We have a global pandemic and stocks markets are down over 30% in just mere weeks. Can we still identify the best stocks for 2020? Yes, we can, but first let’s … [Read more...] about The best stocks for 2020 and beyond after the coronavirus crash
Today, let’s talk about winners and losers from the coronavirus epidemic. Prior to getting into some fun speculation, let’s quickly remark that in a general sense, we’re all losers. People are sick, some have died, and the economic damage to many has been real. We’re in no way trivializing the very real, troublesome elements of this current reality. But today our goal winners … [Read more...] about Stocks to buy for the aftermath of the coronavirus pandemic and stock market crash
The 2020 stock market crash was related to the coronavirus pandemic that spread from China in late December and early January to much of the world in February and March. In order to mitigate the spread of the virus, large parts of the economy were shut down especially in travel related industries. This led to enormous stock market volatility starting in late February. As can … [Read more...] about The 2020 stock market crash: Timeline, what caused it and more
When determining how to invest 1 million dollars, age, risk tolerance and goals will become important factors. Depending on how old you are, your goals and income needs might change. Whether you're still earning money from a regular income from employment or a business will also be a factor. Your risk tolerance is a huge element that needs to be considered that is often … [Read more...] about How to Invest 1 Million Dollars
The Ford dividend is a maybe component of why investors and shareholders buy and hold Ford (F) stock. In this article, we'll look at every aspect of the Ford dividend including its sustainability, how often it's paid, how much is paid out on a regular basis and more. We'll also take a look at dividend investing in general and how the Ford dividend might play a part in an … [Read more...] about Ford Dividend: Analysis, amount and payout schedule
Retirement – it’s something that most of us are planning at some point in our future. But while the idea of never having to work again is enticing, getting there can be a real challenge. After all, making sure you have enough money week-to-week is hard enough, let alone putting aside enough money every paycheck to start saving for the future. Nevertheless, in 2019 about 85% of … [Read more...] about How long will your retirement savings last?
Retiring early is a dream for many individuals, but knowing how to retire at 50 escapes many. To be able to take a step back either partially or fully from traditional employment or a job and enjoy these years of your life is obviously something most desire. Unfortunately for many, by the time they have enough money to retire (or don’t have enough money, but just have reached … [Read more...] about How to retire at 50: A complete guide to retiring early
The consumer price index (CPI) measures the average level of prices of goods and services in the economy. The CPI formula is used to measure the change in prices by consumers for a representative basket of goods and services during a defined time period. CPI is a widely followed measure of inflation which is used by economists, policy makers, investors to guide economic policy, … [Read more...] about CPI Formula: How to calculate the Consumer Price Index
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