Archive for November, 2006
Employee Stock Programs
Thursday, November 30th, 2006Most large corporations have programs for employees to invest in company stock. If you’re a novice to investing, this can be a good place to start.
Typically, these programs involve
Sign up for a monthly deduction from your paycheck; it’s usually limited to around 10% of your gross pay.
Your savings from the monthly deduction above are accumulated […]
Starting With Stocks
Wednesday, November 29th, 2006We talked yesterday that if aggressive growth is what you are looking for, stocks are the best option. A quick comparison of portfolio returns would make it clear why.
Take a look at the Money 65 list of best actively managed funds. Go to the column that says “5 year return”, and look at the returns […]
Choosing Bonds Over Stocks
Tuesday, November 28th, 2006When do you invest in bonds? What makes it a better alternative for you as compared to stocks or other options like savings and CD’s?
Typically, bonds make the most sense when
You need a periodic income from your investments
You’re looking at protecting your capital rather than growth
You need specific factors like tax-free income
On account of these, […]
More About Bonds
Monday, November 27th, 2006Several factors need to be considered, while evaluating a bond for investment.
Interest rate / yield
A bond could have a fixed interest rate, a floating rate pegged to market rates, or even a balloon payment upon maturity (also called a zero coupon bond). Keep in mind that your actual yield may vary significantly from the nominal […]
Fundamental Bond Investment Strategies.
Friday, November 24th, 2006If you’re planning to invest in bonds, you need to define a strategy. Bonds come in different flavors ; high and low risk, high and low yield, floating rate or fixed rate; treasuries, municipal and corporate bonds, not to mention “junk bonds”. Any of these could find a place in your portfolio, depending on what […]
Investing In A Bond Fund?
Thursday, November 23rd, 2006Many rookie investors assume that Bond Funds are a convenient alternative option to investing in bonds directly. After all, the fund invests in Bonds; and they are able to diversify better, as well as get expert advice. In addition, they would have investment experience, which ought to make the returns better?
Bond funds can be quite […]
Investing In Bonds?
Wednesday, November 22nd, 2006If interest rates are high, should you be looking at investing in bonds? Especially fixed rate bonds; traditionally, high interest rates mean that bond prices are low, helping you lock into a high return.
Floating rate bonds like the 10 year treasury are a different option; the rates on these change as the economic outlook and […]
CD’s or Money Market Funds?
Tuesday, November 21st, 2006Most investors debate between CD’s and Money Market Funds, as alternatives for short to medium term saving and investment. While there are other possibilities including investing on the stock market, there are times when you would choose to keep your funds in fixed return investments. For example, while planning a major purchase or investment such […]
CD Rates on the Way Up
Sunday, November 19th, 2006As banks are looking for more ways the attract customers, CD rates have risen over the past year and appear to be continuing this thrend in the immediate future. Many banks have been offering rates around 5% or more for terms of 36 months or longer. But, there are even some banks that are offering rates around […]
Choosing A Fixer Upper
Friday, November 17th, 2006The most important word in property investing is Location - and it’s even more important when you’re considering a fixer upper. Don’t look at buying something just because it’s cheap; poor location could cost you heavily in the long run. Make sure that the property is in a generally desirable location, with potential to appreciate.
The […]