Equities and bonds can both be traded in essentially the same way, but ownership of each entitles investors to do different things. A bond is a loan that you can trade. The valuation is based on the eventual repayment of the bond at maturity. Equities are little...
Start Young There are many people who don’t make six figures who can still retire a millionaire if they begin investing at a young age, maximize employer match contributions on their 401(k) and set aside additional money in an IRA. This is especially true if young...
The best retirement savings account for you is highly dependent on your unique situation. Certain people may be better served by one option based on their income, age or when they prefer to pay taxes. If you’re not sure whether you should be saving money in a Roth IRA...
At a very superficial level, growth stocks have greater tax advantages than dividend stocks in that you only pay capital gains tax once you sell the stock. Capital gains taxes are lower than ordinary income tax rates. Ordinary dividends are considered income, so you...
Tactical asset allocation (TAA) is the act of balancing a portfolio’s mix of stocks, bonds and cash in order to maximize returns within a particular risk tolerance. TAA is more focused on what percentage of a portfolio is in equities, bonds and cash instead of the...
