Investing & Retiring

“Buy low, sell high.” This simple piece of advice sums up the goal of every investor — to sell securities at a higher price than what was originally paid. Of course, this is easier said than done. Buying and selling the right stocks at the right time is tricky business, even for investment pros who
0 Comments
Treasury Inflation-Protected Securities (TIPS) are securities issued by the government that adjust for inflation based on the value of the Consumer Price Index (CPI). Unlike other fixed-income investments, the face value (and therefore the interest income) varies over time based on the amount of inflation adjustment. This makes TIPS a good choice for a laddering
0 Comments
A new type of investment has recently emerged that has piqued the curiosity of options investors. Commonly referred to as binary options, this investment is an options contract in which the payout is based on the correct or incorrect answer of a simple yes/no proposition. Binary options are also sometimes called all-or-nothing options or Fixed
0 Comments
Pairs trading, developed by analysts at Morgan Stanley in the 1980s, uses correlation between two similar investment vehicles to create a market-neutral trading strategy – where profits are not related to whether the overall market goes up or down. Correlation of two investment vehicles refers to how their prices change relative to each other. If
0 Comments
The Foreign Currency Market, often called the FOREX or FX market, is a marketplace for the buying and selling of currencies, which are considered a form of commodity. Investors make or lose money based on changes in the value of relative currencies. Trades on the FOREX market are made in currency pairs – you are
0 Comments
An investment is considered “triple-tax-free” if it is exempt from taxes at all three levels of government – federal, state and municipal. What kind of investment gives you that sort of a sweet deal? The answer is municipal bonds. Generally, a state or a municipality offers the bonds with tax-free interest payments to promote investments
0 Comments
“The Witching Hour” sounds like a bad public access television show, but it really refers to a particular time of day where odd and unexplainable things happen. When referring to stocks, it means pretty much the same thing, except that the reasons behind the activities are somewhat explainable. Triple-witching days occur four times a year
0 Comments
Natural gas has been touted by some as a greener alternative to other fossil fuels, and thanks to technological improvements to increase supply, the current price also makes natural gas an attractive option. The relatively sudden increased availability of natural gas was a boon for energy consumers. Unfortunately for investors, natural gas price plummeted through
0 Comments
There are two avenues of government assistance to disabled Americans – Supplemental Security Income (SSI) or Medicaid. To qualify for these programs, generally a person must meet the definition of disabled as defined by the Social Security Administration, must have resources of less than $2,000 and the disability must prevent them from holding a job.
0 Comments
Not surprisingly, choosing a trustee is one of the most important aspects of setting up a trust. It is not uncommon for trustees to be unprepared, overwhelmed, disinterested, or otherwise unsuited for the job they have been given. The job of a trustee, and therefore the best choice of trustee, varies depending on the type
0 Comments
Futures are investments that allow you to buy commodities by locking in a certain price at a specific time without actually buying the shares. These are speculative bets you are placing on the future price of a commodity, sometimes far in advance. In addition to commodities such as crude oil and corn, stocks, foreign currencies
0 Comments
The sad fact is that many retirees today are living on very small fixed incomes – money from IRAs they may have started late in their careers, and the small monthly amounts they receive from Social Security. To help supplement their finances, some retired investors are being drawn to purchase secondary market annuities, which promise
0 Comments
Options are similar to futures, where two parties agree to a transaction at a future date for a set price. The difference is that futures are obligations to follow through on the transaction, whereas options are the right to participate in the transaction. In both cases, the goal is to generate short-term income. Option contract
0 Comments
Commodities are commercial goods that are considered interchangeable with other goods of the same kind and quality, and traded in that fashion. When most people think of commodities, they may think of traditional commodities such as wheat, cattle, heating oil or gold. Today, this definition can also include financial instruments such as currencies or indices,
0 Comments
Futures are a type of financial contract where two parties agree to a future transaction at an agreed-upon price. That transaction could be in commodities, currencies, stock indexes or other goods. Futures contracts contain all the pertinent transaction details — quantity, specifications, price per unit and intended delivery method. However, many futures contracts do not
0 Comments
An annuity is an insurance product and retirement planning tool that establishes a future income stream based on a current investment. Most annuities are sold through insurance companies, but some are supplied via direct sale from investment companies such as Vanguard and T. Rowe Price. You have two choices regarding the style of annuity: Deferred
0 Comments
The Federal Deposit Insurance Corporation (FDIC) is a U.S. Government regulatory agency that has three primary purposes: Insure bank deposits of member banks; Assist with banking regulations; Deal with failing banks. Let’s look at each of these jobs in a little more detail. Deposit Insurance The FDIC does insure bank deposits in
0 Comments
Investors have long valued Certificates of Deposits (CDs) as a low-risk savings tool. Most types of CDs are straightforward; the more you deposit and the longer the term, the higher the interest rate and return. In addition, many come with insurance from the FDIC. In today’s investment environment, historically low interest rates have made CDs
0 Comments
Stock options were formerly considered best left to stock trading professionals. But these days, trading stock options is almost as easy as buying and selling shares of stocks or mutual funds. Stock options are even allowed in self-directed Individual Retirement Accounts (IRA’s). Even as options have become easier to access and trade, they may still
0 Comments
CD or Savings Account: One, Both, or Neither? Finding an investment product that best meets your unique needs can be confusing and frustrating. There are so many out there, including mutual funds, money markets, stocks, bonds, and annuities, to name a few. Books have been written comparing and contrasting each one of these. This article
0 Comments