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S&P 500 Equal Weight Index vs Capitalization Weight (RSP vs SPY)

RSP vs SPY vs MDY Historical Performance Max

The S&P 500 is a market capitalization weight index. This means that larger companies make up larger percentages of the index than smaller companies. The percentage is calculated by taking the market capitalization of the stock and divided by the total market capitalization of the entire index. For example, the largest company in the S&P … Read moreS&P 500 Equal Weight Index vs Capitalization Weight (RSP vs SPY)

Dogs of the Dow Strategy for September 2019

Dogs of the Dow Strategy for September 2019 3

The Dogs of the Dow is a straightforward investment strategy first introduced by Michael B. O’Higgins in his book Beating the Dow. The procedure is very simple. At the end of the year, look at the Dow Jones Industrial Average index, pick the ten stocks with the highest yield, and invest an equal amount of … Read moreDogs of the Dow Strategy for September 2019

Portfolio Rebalancing Strategies: How and When to Rebalance Your Portfolio

Portfolio Rebalancing Strategies: How and When to Rebalance Your Portfolio 6

Most investors use asset allocation as a core investing strategy. This means investing a specific amount in each investment, which could be viewed as slices in a pie. At the high level, these pies are different asset classes like equities, fixed income, real estate, commodities, and cash. Within each pie, an investor also decides a … Read morePortfolio Rebalancing Strategies: How and When to Rebalance Your Portfolio

A Guide to Dividend Reinvestment Plan (DRIP)

A Guide to Dividend Reinvestment Plan (DRIP) 11

A Dividend Reinvestment Plan, or DRIP, is an easy way to buy more shares using the dividends you received from your stocks. With this plan, you grow the number of shares you have over long periods of time. Many companies offer their shareholders the ability to convert dividends into additional shares of stock directly without … Read moreA Guide to Dividend Reinvestment Plan (DRIP)

Dividend Investing Basics, Advantages, and Disadvantages

Dividend Investing Basics, Advantages, and Disadvantages 13

One of the more popular investment strategies is to invest in dividend-paying stocks. In this article, we will go over the basics about what are dividend stocks and the advantages and disadvantages of dividend investing. Dividend investing is a powerful method to grow your wealth while generating regular income. Depending on your financial situation, you … Read moreDividend Investing Basics, Advantages, and Disadvantages

Invest in Peer-to-Peer Lending with Lending Club, Returns and Risks

Invest in Peer-to-Peer Lending with Lending Club, Returns and Risks 17

I have been lending in peer-to-peer lending networks like Lending Club and Prosper for about ten years now. Today, I want to share with you some of the things I have learned, and you can decide if this is the right investment for you. For those looking for quick answers: yes, peer-to-peer lending is a … Read moreInvest in Peer-to-Peer Lending with Lending Club, Returns and Risks

Different Types of Saving and Investment Vehicles

There are many different financial products out there that can help you achieve your saving and investing goals. Each type is better at meeting specific financial objectives, while others are better for different purposes. When you start investing, it is a good idea to become familiar with the more common ones. I am an experienced … Read moreDifferent Types of Saving and Investment Vehicles

Asset Location: Best Accounts for Different Investments

Asset Location: Best Accounts for Different Investments 23

Asset Location is a tax-efficient investing strategy to help you minimize taxes and grow your investments faster by holding investments in the best-suited investment accounts.  This strategy leverages the fact that investments in Roth IRA and 401(k) are tax-free, and investments in Traditional IRA and 401(k) are not taxed until the money is withdrawn. For … Read moreAsset Location: Best Accounts for Different Investments

Compound Interest Formula and Examples

Compound Interest Formula and Examples 28

One of the most powerful forces in finances is compound interest. Compound interest is interest that is paid on the principal and also on the interest that previously earned on your investment. This helps you grow your investment at an accelerated rate. On the other hand, compound interest can work against you — for instance, … Read moreCompound Interest Formula and Examples