The majority of investors think long-term. For instance, most US households, excluding the wealthiest 1%, predominantly keep their stocks, bonds, and bills in retirement portfolios. In fact, those not in the top 1% or even 10% of wealth distribution have 60% and 77% of their investments, respectively, in defined contribution and defined benefit plans. Considering…
Looking for the best Vanguard funds for your 401(k) retirement savings? It’s not as simple as just picking a random fund and hoping it performs well. To make informed decisions, you need to consider several factors, such as minimum investment, share class, allocation, investor shares, ETFs, risky securities, and markets. One important aspect to keep…
Are you tired of paying high fees for financial advisors? Do you want to manage your investments online with wealthfront advisers and SoFi automated investing? If so, consider opening brokerage accounts with them and let their automated investing strategy work for you. Robo-advisors are automated investment platforms that use algorithms to create and manage investment…
The first exchange-traded fund (ETF) was created in the United States and is known as the “Standard & Poor’s Depositary Receipts” or “SPDR” for short with the symbol SPY. The SPDR ETF was launched on January 29, 1993, by State Street Global Advisors (SSGA). It is also commonly referred to as the “Spider” ETF. The…
Certain stock indexes are created to measure the price performance of a basket of stocks representing a market segment. The Morningstar Wide Moat Focus index is one of such, but what is it? The Morningstar Wide Moat Focus Index is a rules-based, equal-weighted stock index that tracks the performance of companies with Morningstar Economic Moat…
To buy back shares is one of five opportunities a company has for allocating the company’s capital and rewarding shareholders. Paying a dividend is far more known, yet companies have since 1997 spent more money on buybacks than dividends. How the company allocates capital is the main determinant of future stock market returns. Are buybacks…
Have you ever wondered how ETFs came into existence? Exchange-traded funds (ETFs) have become increasingly popular in recent years, but their history goes back to the early 1990s. The first ETF was introduced as a way for investors to gain exposure to a variety of asset classes without having to purchase individual stocks or bonds….
Investing in stock spinoffs can be both a lucrative and complex endeavor. Before you dive into this venture, it is important to understand the basics of spinoff investing so you can make wise decisions and maximize your potential profits. Here are 51 things you should know about spinoffs (stock investing). 1. A spinoff is when…
Some IPOs go on to be multibaggers, like for example Facebook, Amazon, and Netflix, to name the most successful, but this article provides you with 9 reasons not to buy an IPO. For every IPO success, many more failures tend to be forgotten. The losers mainly don’t catch any interest from the media. The truth…
Warren Buffett recommends most investors invest in passive index funds. In general, investors should not be active investors. Why? Buffett recommends passive and low-cost index funds because he believes this is the most rational way to invest for most people. There are so many forms of mistakes ordinary investors can make, but passive index investing…
