The securities that exist in today’s financial markets can be divided into four main classes: stocks, bonds, cash, and foreign holdings, with the first two representing the major part of most portfolios. These categories can be further subdivided by “style.” Let’s take a look at these classes in the context of mutual fund investments:
Asset allocation planning can range from the relatively simple to the complex. It can range from generic recommendations that have no relevance to your specific needs (dangerous) to recommendations based on sophisticated computer techniques (very reliable although far from perfect). Between these extremes, it can include recommendations based only on your time horizon (still risky) or on your time horizon … Read More
How To Diversify For Maximum Return Asset allocation-not stock or mutual fund selection, not market timing-is generally the most important factor in determining the return on your investments. In fact, according to research which earned the Nobel Prize, asset allocation ( the types or classes of securities owned) determines approximately 90% of the return. The remaining 10% of the return … Read More
1. Save As Much As You Can As Early As You Can. Though it’s never too late to start, the sooner you begin saving, the more time your money has to grow. Gains each year build on the prior year’s — that’s the power of compounding, and the best way to accumulate wealth.
For the young, newly married couple, areas of financial concern primarily include: (1) life insurance, (2) form of property ownership, and (3) money management. Life Insurance When it comes to insurance needs, the basic rule is that you need enough coverage to sustain your family’s present income level should you die. If you are the only breadwinner, or if you … Read More
If you’re a small business owner with fewer than 25 full-time equivalent employees you may be eligible for the small business health care credit that went into effect in 2010. What is the Small Business Health Care Credit? The small business health care tax credit, part of the Affordable Care Act enacted in 2010, is specifically targeted to help small … Read More