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Nearly every man who develops an idea works it up to the point where it looks impossible, and then he gets discouraged. That's not the place to become discouraged.
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Tag Archives: diversification
Heard Off The Street: Real Assets – Private or Public?
Investor interest in “real assets” has risen relentlessly during the financial crisis and its aftermath. By real assets we mean claims on the value of tangible items such as timber, oil, soybeans, copper and the like (as well as the companies that own them) or claims on changes in the value of inflation-linked assets (such as Treasury inflation-protected securities, or TIPS). Read More
5 ways to keep inflation from ruining retirement
Inflation is the long-term threat stalking every portfolio. Read More
A Tale of Two Strategies: Bond Funds vs. Individual Bonds
In fixed income investing there is an on-going debate over the advisability of investing in bond funds versus investing individual bonds. Investment professionals on both sides of the argument have persuasively outlined the advantages and disadvantages of either approach. Read More
Do you know what’s in target-date fund portfolio?
Do you know what’s in the target-date mutual fund you’re counting on for retirement?
It might be more than stocks and bonds. Read More
7 common money moves that can bring bad luck
Unless you happen to trip over a black cat while walking under a ladder outside your financial adviser’s office, nothing should really spook you about your money on Friday the 13th. Still, it’s a good time to remind yourself of money mistakes to avoid throughout the year. Read More
5 ways for retirees to save on future taxes
Lowering your tax bill can make all the difference in retirement.
Taking maximum advantage of tax breaks and other strategies will make savings last longer, which is critical for those living on a fixed income. Read More
Climbing a Bond Ladder
There is usually more than one way to travel from point A to point B. When planning a trip, a person can look at a map or use the internet to identify a variety of carriers or alternate routes that will deliver a person to a desired destination. There will naturally be advantages and disadvantages with each carrier and each route selected. So it is with fixed income investing: there are a variety of investment products and structuring techniques that may help deliver targeted results. Read More
5 reasons why investors shouldn’t fear muni bonds
Investors have been flooding out of municipal bonds amid fear of defaults by troubled state and local governments. They’ve pulled $25 billion out of muni-bond funds in just over two months.
The question is whether they’ve overdone it.
Has an investment long viewed as an ultra-safe, plain-vanilla part of a portfolio really become that toxic? Many bond market experts think investors have overreacted Read More
The Case for Cash
A strong case can be made that every investment portfolio should contain cash. Cash is generally defined as a safe and liquid asset, such as U.S. Treasury bills, Money Market funds, FDIC-insured Certificates of Deposits, or Bank checking and saving accounts. While cash instruments are not suited to counter inflation, cash does provide an investment portfolio . . . read more Read More
Fixed-income ETFs make sense, but in moderation
Investors have been increasingly pouring cash into exchange-traded funds specializing in fixed income. That gives them the quick-trading capability of ETFs while retaining the more conservative position of bonds.
Many financial analysts think the flight to safety is overdone. They say investors need to be in stocks for the long run . . . read more Read More
Tools to help rebalance an investment portfolio
Shifting markets can throw an investor’s mix of stocks, bonds and other assets off-target. For example, if stocks rally, a portfolio with 60 percent in stocks and 40 percent in bonds may grow to 70 percent in stocks. This means the investor is taking on more risk than intended. It’s possible to get back on track by rebalancing the portfolio to restore the desired asset allocation. Here’s a look at some tools to help determine an ideal mix for you, and stick with it:
—CHOOSING A PLAN: Most major investment companies offer guidance on their Web sites on how to choose an appropriate asset allocation, and how to shift it as you approach retirement . . . read more Read More
Investing Basics: Portfolio Diversification
An important way to reduce the risk of investing is to diversify your investments. Diversification is akin to “not putting all your eggs in one basket.” For example, if your portfolio only consisted of stocks of technology companies, it would likely face a substantial loss in value if a major event adversely affected the technology industry.
There are different ways to diversify such a portfolio:
*You could invest in the stocks of companies belonging to other industry groups.
*You can allocate your portfolio among different categories of stocks, such as growth, value, or income stocks.
*You may include bonds and cash investments in your asset-allocation decisions (potential bond categories include government, agency, municipal, and corporate bonds).
*You might also diversify by investing in foreign stocks and bonds. Read More
