Investing made simple. Where should you invest? Information on stocks, mutual funds, index funds, retirement accounts and more. Also be sure to check out our complete guide to investing.
The stock market can be scary for new investors, but it’s not quite as complex as the folks on Wall Street want to pretend it is. This brings us to the most basic question about the stock market: What is a stock? A stock is a share of a public company.
What is a “public company”?
There a private companies and there are public companies. Private companies are owned by individuals or by other companies. Public companies are owned by, you guessed it, the public! This is a way to have multiple people contribute to a company financially.
Here is an example…
IRAs are great for retirement accounts, but that’s that all!
There are many little-known uses for an IRA to shelter money from taxes.
Normally when you pull money out before retirement, you are penalized with an additional 10% tax, but here are some ways to avoid that extra fee…
First off, an IRA (Individual Retirement Account) is NOT an investment.
An IRA is a shelter for investments. A tax shelter.
In an IRA, you have the options to buy stocks, bonds, mutual funds, money market accounts, CDs and, in some cases, real estate.
The purpose of using an IRA as an investment account to hold all of these securities is simple…