Balancing Your Return Ideals With the Realities of Risk

Every builder starts with a foundation. If you are new to investing, you are building an investment portfolio, and you need to start with an investment foundation. That foundation consists of the basic investment principles. Boiled down to its bare basics, investing concerns returns and risks. An investor’s return consists of current income, plus capital…

 

Balancing Your Return Ideals With the Realities of Risk

Every builder starts with a foundation. If you are new to investing, you are building an investment portfolio, and you need to start with an investment foundation. That foundation consists of the basic investment principles. Read more »  

 

Why Bond Prices Go Up and Down

Bond prices go up and down in response to two factors: changes in interest rates and changes in credit quality. Individual investors who purchase bonds tend to worry a lot about the safety of their money. Generally, however, they tie safety to credit considerations. Many individual investors do not fully understand how changes in interest…

 

Breaking a Tie Between Funds

Making tax avoidance your investment focus is a formula for investment disaster. But keeping your eye on aftertax returns is simply wise investing. For example, two funds have similar compound average annual five-year before-tax returns. A five-year period is probably long enough to get a picture of how the funds have performed in different market…