Debt funds are mutual funds that invest in fixed income securities issued by the government and private companies.
Difficult terms made simple. These are not mere definitions, but rather an easy to understand description of financial terms.
Do you save for your children’s education?
Or do you plan to start?
If you think it’s important to help your child with college expenses, you are in luck, because you have some options.
One of the most common ways to save for education is through a 529 plan.
A 529 is like an IRA for education.
Let’s see how a 529 can help you…
You have heard the term 401(k) before.
You know it has to do with retirement.
You may even contribute to a 401(k), but do you fully understand it?
It’s simple to understand what it is and how it can help you.
Let me explain…
A DRIP (Dividend Reinvestment Plan) is great for the small investor.
If you personally want to invest, but feel like you don’t have enough money, a DRIP is a great starting place for you.
You don’t need very much money to get started and you don’t have to keep pouring large amounts of money in.
Bitcoin is a new term compared to most other forms of currency.
Bitcoin is now a real and fairly popular currency, so you should probably know a little bit about it.
When you ask Google what Bitcoin is, this is the first thing you will get:
“Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by pseudonymous developer Satoshi Nakamoto. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money.”
Basically, a bitcoin is…
You have probably heard a lot about penny stocks. I’m sure you have seen ads all over the Internet that advertise things like “Get rich with penny stocks!” or “Turn pennies into thousands!”.
Well unfortunately those ads aren’t very realistic.
I know, I know, it’s surprising to find something on the Internet that may not be true. Is it possible to make a lot of money with penny stocks? Sure. You can make money with anything if you are good at it or lucky, but it’s definitely not for everyone and it’s not really investing.
So what exactly is a penny stock?
An ETF (Exchange-Traded Fund) is a fairly new invention and they are getting very popular. An ETF is similar to an index fund. It tracks a particular index like an index fund, but it is traded like a stock.
This means that an ETF has a ticker symbol and you can buy it by the share. Exchange Traded Funds can also track commodities such as gold and silver. This is a great way to invest in commodities with small investment amounts without holding physical assets. They also give you more liquidity than holding physical commodities…
A bond is a form of investment. Simply put, a bond is debt.
When you buy a bond you are basically offering a loan to a company or government, and the entity that you borrow from is then in debt to you; unlike a stock where you own a share (or a piece) of a company, with a bond you are just loaning the money for a certain amount of time.
This article is for the investor wanting to know what a bond is (for investing purposes not macro economical purposes) so I won’t get too deep into monetizing, but I will say that bonds are often what people are referring to when they talk about the government printing more money out of thin air. This occurs through selling bonds to the public, as well as the government buying their own bonds (monetizing).
So what are the rates of return for bonds?