In my post about beating the S&P 500, I mentioned regular contributions as a factor that helped me. Over the weekend, I examined precisely how regular contributions helped. This led me to the subject of Dollar Cost Averaging (DCA), which until recently I thought was the same as regular contributions. They are not! Dollar Cost … Read moreDoes Dollar Cost Averaging Work?
You may have heard the phrase beat the market. In this case, the market usually refers to the S&P 500 index. There are other U.S. indices such as, DJIA, NASDAQ 100, NASDAQ Composite, Russell 2000, Wilshire 5000, and many other domestic and international ones. However, the S&P 500 is by far the most used benchmark … Read moreWhat Does It Means to Beat the Market and How I Did It
On books, web sites, and blogs (including this one) you may have come across references such as the S&P 500 has grown 13% annually for the past 30 years or something to that effect. You may wonder what that means and where did they get that number. When someone states an annualized return, most likely … Read moreWhat is Compound Annual Growth Rate (CAGR) and How It Works
The other day I was watching the news and saw that Tiger Woods just won his 13th major title — that is nothing short of phenomenal. Then my mind drifted back to personal finance issues and it dawned on me that mastering golf is similar to mastering the art of investing. Here are my thoughts. … Read more10 Things Golf Teaches Us About Investing
I have been investing in the stock market for nearly 10 years and acquired quite a bit of experience and knowledge (mainly through making mistakes). I’ve never codified on to a piece of paper until today. Before I begin, I want to give credit where credit is due. This post was inspired by CommodityWorld.com’s Common … Read more35 Rules of Common Sense Investing
For new investors, a stock market crash can be a frightening experience. In the past few days, there were a lot of gloom and doom talk about the stock market that closed 13,265.47 on Friday, July 27 off the record high of 14,000.41 sets on Thursday, July 19 — a 9.47% drop in 6 days! … Read moreWhat to Do When The Stock Market Crashes
What are Exchange-Traded Funds (ETFs)? They are a relatively new class of investment funds that hold underlying assets like a mutual fund, but are traded on a stock exchange like individual stocks. To better understand ETFs, here are some of the characteristics groupped into their similarity with mutual funds and individual stocks. ETFs are similar … Read moreWhat are Exchange-Traded Funds (ETFs)?