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Advantages of Buy and Hold Strategy

investing in stock market

We can debate whether buy and hold is a more effective method than other investment strategies, but it has two major advantages that are beyond any doubt. One is that transaction fees are generally lower with buy and hold than with other more active investment approaches. The second, which is even more significant, is the … Read more

Is it Good to Have a High Credit Limit?

Is it Good to Have a High Credit Limit? 3

Having high credit limits can sometimes seem like a validation of our financial success. If these lenders allow you to borrow such a large amount, they must think well enough of you and you are therefore you must be successful. For younger adults, it can even be fun competing with your friends to see who … Read more

Top 10 Tax Deductions for Landlords

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When you own rental property, you are essentially running a small business. This means that you can use your business expenses to reduce your business income, thus reduce your overall taxes. It is not uncommon for rental property investors to pay no income tax at all. Here are ten primary tax deductions for rental property … Read more

Why You Need an IRA Even if You Have a 401(k)

Why You Need an IRA Even if You Have a 401(k) 24

Most of us like simplicity in life, and that even includes retirement planning. If you actively participate in the 401(k) plan with your employer, you may assume that you’ve got your retirement covered. But as the saying goes, never assume anything. Investing in an individual retirement account (IRA) is an opportunity to supplement your 401(k) … Read more

Are Bonds and Bond Funds Safe Investments?

Are Bonds and Bond Funds Safe Investments? 28

When we build an investment portfolio it should include a mix of higher risk securities as well as safer investments. This usually divides the portfolio neatly between stocks and bonds. And with mutual funds and exchange traded funds (ETF’s) being so popular, that usually means stock funds and bond funds. But are bond funds really … Read more

3 Problems with High Turnover Ratio Mutual Funds

Just like Football, high turnover is bad for you and good for the other team. Investing in mutual funds and exchange-traded funds (ETF’s) with high turnover ratios involves paying a substantial amount in transaction fees and other costs. This means these investments are at a performance disadvantage, and they could cost you money in other … Read more