Developing a Financial Plan
The first step is to figure out a realistic financial goal for yourself and your family…
Someone starting their savings in their early 20s can save 10% of their income and have a sufficient nest egg…
Risk vs. Return, Asset Allocation, Diversifying, Monitoring Progress…
There are definite risks to investing, but educating yourself can drastically limit your exposure to these risks…
Is this investment too risky for me…
How has this fund performed previously…
Don’t invest emotionally, don’t trust tips, pay attention to your investments, reevaluate…
Derivatives are investments whose values derive from the security which they are based on…
Starting too late, paying high fees, investing emotionally…
Annualized return is the return on investment received that year…
The rule of 72 is a quick way to calculate how long it will take your investments to double at different interest rates…
The total return is the amount of money that a fund makes after reinvesting and receiving dividends…
You will not be able to withdraw any of the money in an annuity during its tax deferred growth period without incurring large fees…
Single-Premium, Flexible-Premium, Immediate, Deferred, Fixed, Variable…
There are a few choices that you have when choosing to collect your annuity…
The tax rates will differ for qualified and non-qualified plans…
Annuity payments are subject to the same taxes that would have been collected from you.
Commissions, the company, compare and contrast…
Bonds FAQ
A bond is simply a certificate which the borrower promises to repay within a certain time period…
Bond quality is the rating of the creditworthiness of an issuing organization…
Generally bond prices and interest rates have an inverse relationship…
A “call” is when the issuer of the bonds has an opportunity to redeem the bonds after a certain specified amount of time has passed…
A bond mutual fund has within it multiple bonds, and for that reason it is impossible to lock in the payment rate or the principal…
Municipal bonds are offered by local governments, states and cities…
Mutual Funds FAQ
All mutual funds distributions should be reported as income, whether you reinvest or not…
Funds will generally give you the opportunity to automatically reinvest in the fund…
Mutual funds sometimes will distribute back to shareholders monies that haven’t been attributed to the funds earnings…
Stock FAQ
Most stocks are common stocks. However, there is another type (known as preferred) which gives certain advantages regarding dividends…
It is fairly easy to invest in foreign corporations, because these corporations need to register these securities with the SEC…