Debt funds are mutual funds that invest in fixed income securities issued by the government and private companies.Read More
by Kalen Bruce | Apr 12, 2014
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…Read More
by Kalen Bruce | Feb 15, 2014
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.Read More
by Kalen Bruce | Feb 1, 2014
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…Read More
by Kalen Bruce | Jan 18, 2014
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?Read More
by Kalen Bruce | Nov 27, 2013
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…Read More
by Kalen Bruce | Nov 27, 2013
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?
A mutual fund is like a bucket full of multiple different stocks, bonds, securities or a combination that you invest in collectively. When you buy into a mutual fund, you are buying into all of the securities in the fund by making one single investment. It is a great way for instant diversification.
There are different types of mutual funds…
There are stock funds, sector funds, passively-managed, actively-managed, load, no-load, money market funds, balanced funds and that’s just naming a few of them.
This may seem confusing, but if this seems more complicated than you would prefer, there is a simple rule that you can live by…Read More
An index fund is a fund that tracks an index, such as the S&P 500, the Nasdaq 100 or the Dow Jones (the 3 most popular American indexes). So what exactly is an index?
What is an Index?
An index is a representation of a portion of the stock market.
For example: The Dow Jones Index is comprised of 30 companies, these are 30 of the largest and most influential companies in America. So if you were to invest in a Dow Jones index fund, you would be able to invest in a single fund, but that single fund would be invested in all of the companies on the Dow Jones Index.
There are larger indexes, the largest among popular indexes probably being…Read More
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…Read More
by Kalen Bruce | Nov 10, 2013
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…Read More