The One Reason Why You Need A Risk Management Plan
Seems these days everyone has an opinion on how to make money in the stock market. Only now it’s not just the stock market, there is options, foreign exchange, commodities and bonds. And it’s no longer just investing or trading. There’s swing trading, position trading, income investing and dividend investing. Yet I’ve barely scratched the [...]
Understanding Investment Risk Profiles
Investment advisers and the investment industry has continuously stressed the importance of diversification and asset allocation, however investors have often ignored this, as they were too busy chasing high returns. Since the market meltdown over a year ago investors have learned a hard lesson that asset allocation is vital to an investment portfolio. In this [...]
Up until about 10 years ago, there was one type of IRA, the traditional IRA which was deducted from your taxable income, grows tax deferred, and upon withdrawal, is taxed at whatever rate you find yourself. Its cousin, the Roth IRA is the mirror image, the money you put in is after tax money, but [...]
Tax Diversification — Why It Pays To Tax Diversify
We hear a lot about diversifying across asset classes — owning stocks, bonds, real estate, etc. We also hear a lot about diversifying within asset classes — owning mutual funds of hundreds of stocks rather than owning a few individual stocks. But there’s another, lesser-known form of diversification from which you could benefit: Tax diversification.
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I am thrilled with the announcement made by the New York’s 529 College Savings Program today. They finally decided to add an international investment option to their 529 Direct Plan. This new investment is called the Developed Markets Index Portfolio, which invest 100% in Vanguard Institutional Developed Markets Index Fund.
I think this is a really good [...]
Alternative Investments, Correlation, and Diversification
In this Ask the Expert with Larry Swedroe article, Rob observed that none of the alternative investments provided sufficient risk reduction to soften the impact of the current Bear Market. Diversification doesn’t seem to be working. What went wrong? Here’s the question from Randy:
Dear Larry,
I’m reading your book, The Only Guide to Alternative Investments You’ll [...]
Lost Money In The Stock Market, What Should I Do?
In this Ask The Expert With Larry Swedroe article, the reader (Larry) lost a lot of money in the stock market. He detailed his plight and complained about his full service brokerage firm. It’s 2009 and he only have half of what he did a few months ago. What should he do? Here’s the question [...]
Income Diversification
Diversification is a concept that I’ve embraced most of my life. In the past, I have discussed investment diversification and also touched on the concept of income diversification. Today, I want to explore the idea of diversifying your.
When you think about income, most of you will immediately think about your job. However, if you want [...]
Should You Invest In Vanguard Target Retirement Funds?
My company made Vanguard Target Retirement Funds available for our 401k accounts about two years ago. However, I have not used them preferring to manually manage my own portfolio using traditional funds that include bond, large-cap, small-cap, international stock, and REIT funds. However, Target Retirement Funds are not without merits — in fact, I’ve been [...]
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Personal Development
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Building income streams to make more money and earn extra income is one of the four pillars of wealth building, and as such, it’s one of the primary focus of this blog. To help you get started quickly, I have gathered the best articles about making [...]
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