Knowledge and Investing Styles Vary

A majority (55%) of surveyed investors with $10,000 or more invested in stocks, bonds or mutual funds described themselves as being “listeners” in a Wells Fargo/Gallup poll. Listeners seek out good investment advice and tend to follow it. Nearly a quarter (24%) of surveyed investors rarely look at their investments (“snoozers”), whereas just 10% use…

 

AAII Survey: Environmental, Social and Governance (ESG) Issues Not Overly Important to Individual Investors

According to Wikipedia, environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk). ESG investing focuses on companies that support environmental protection, social justice, and ethical…

 

Analyzing Money Market Funds: Low Risk Isn’t No Risk

In uncertain times, even relatively low-risk investments come under strict investor scrutiny. And well they should, since they are viewed as a safe haven for hard-earned savings. Money market mutual funds are considered by many to set the standard for low-risk, liquid and convenient investments. As such, they must be able to stand up to…

 

AAII Survey: Dividend Reinvestment Plans (DRIPs)

Dividend reinvestment plans or DRPs/DRIPs are offered by many companies to give shareholders the option of reinvesting the amount of a declared dividend by purchasing additional shares. Normally, when dividends are paid, they are received by shareholders as a check or a direct deposit into their bank account. Because shares purchased through a DRIP typically come from…

 

Analyzing Your Financial Health Using Personal Financial Ratios

Investors commonly use stock ratios such as price to earnings, price to book and dividend yield to assess the financial health of a company. The reasons the ratios are so widely used are because they convey a great deal of information in a concise format and allow investors to benchmark a company’s financial status. When…

 

Common Stock Repurchases: A Bane or Boon to Shareholders?

Repurchases of common stock by corporations can be an attractive alternative to dividends. They may also affect share price. But what is their impact—to the corporation; to the shareholder? Many companies have been repurchasing their common stock in recent years and some can involve hundreds of millions or even billions of dollars. Investors who own…

 

AAII Survey: Biggest Concerns About Retirement

Retirement has the potential to be a relaxing and fulfilling stage of life. As with any major change, however, retirement presents a new set of challenges that may cause anxiety. How do you manage health care costs? How do you keep from outliving your money? How do you leave an inheritance? AAII Weekly Survey Question…

 

AAII Survey: Majority of Retail Investors Satisfied With Broker Services

Over the last several years, brokers have become a commoditized service as prices have fallen. In order to differentiate themselves from the competition, brokers are adding to the services they provide. In many cases, this has gone well beyond proprietary analyst reports. Many brokers are now offering real-time quotes, portfolio tracking modules and much more. AAII Weekly Survey…

 

Delaying Retirement, But Not Your Retirement Dreams

Many investors today who had planned to retire early at 62 when they became eligible for Social Security benefits—albeit at a reduced rate compared with retiring at full retirement age—are discovering that those benefits, combined with their retirement savings, cannot support the lifestyle they expected or provide the financial cushion in retirement they desire. Often,…

 

You CAN Lose With Bonds

Big losses in the stock market can send investors scurrying for “safe” investments. But what is a “safe” investment? Stocks are risky because stock prices go up and down all the time—sometimes wildly so—and if you have money invested in stocks, the value of your original investment can drop substantially. In contrast, many investors put…