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Exchange Traded Funds Primer
Exchange Traded Funds (ETFs) are a group of passive index funds that trade on an exchange like an individual stock. At the time of writing there are 162 ETFs with $220 billion in assets under management trading on U.S. exchanges. ETFs hold a basket...
Hot Tips For Retirement Savings
Hot tips on your retirement savings
At the start, safety features were not needed in car design.
Neither was it needed in a 401(k) account, but that is no longer
true.
Here are some suggestions and things to watch out for:
1. Save...
Index Funds - Are they right for you?
Index Funds - Are they right for you? by Gabriel Nijmeh Indexing is an investment approach that seeks to match the investment returns of a stock or bond index. An investment manager tries to duplicate the target index by holding all the securities...
Secrets Behind Interest Only Loans: Lower Payments, But Are They Right for You?
Interest Only loans gained widespread popularity in 2003 when FannieMae, the largest purchaser of secondary market home loans, provided guidelines to wholesalers for purchasing them. FannieMae calls it Interest First also known as Interest Only...
Staying Safe In A High Risk Market
Did you know that 80% of the price movement in a stock or a mutual fund is determined by the overall market conditions and by the company's sector? This is the reason we use the top-down approach in managing your money. We look at the market...
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Buy, Sell or Hold?
What should I do? My investments are down and I don't know what to do? Should I be buying now, selling or waiting the market out? What are the successful investors doing? Here's a few ideas that could fatten your portfolio and give you a greater level of confidence.
1. Stop looking daily at the stock tables and mutual fund quotes. Take the long-term approach and don't worry about the day-to-day activities of your funds. A buy and hold investor doesn't worry about the short- term fluctuations of the market. They ignore the daily market reports and news headlines.
2. Think about when you will need your investment funds. If you've got a long time before you need the money, you'll be able to sit tight through a long bear market.
3. Remember to look at the statistics and past history of the stock market. Over the past 75 years the worst 30-year stretch for stocks was the 3 decades through August 1959. According to Chicago's Ibbotson Associates, stocks climbed 7.8% a year, enough to turn $10,000 into $95,000.
4. Consider increasing the amount you invest. At today's depressed stock prices you can get more shares for your money. Think of it as a sale on stocks.
5. The future is uncertain and no one know which sectors might lead the way next. To ensure that you get a piece of the action, diversify. Diversifying also cushions the effect of
downturns that affect just one market segment.
6. If you've been thinking about converting your individual retirement account to a ROTH IRA, now might be a good time to convert, as taxes should be smaller because of the market decline. What's the advantage of converting to a ROTH IRA? Once retired, all the money withdrawn from the ROTH will be tax-free.
7. Spend some time assessing your investment portfolio. What is your risk tolerance? Are you willing to exchange higher returns for greater fluctuations? If you do decide to sell off part of your holdings because it is no longer appropriate for you, do so because you have a good reason, not because the market is down.
Timing the market and chasing after hot stocks seldom works. Most people end up buying high and selling low with this thought process. Once again, think long-term and your successes will be greater.
Remember, many people may be selling now, but for every share sold, someone is buying. So who's smarter, the ones buying or the ones selling?
You decide!
About the Author
Doris Dobkins, Money Saving Expert Author of "Financial Freedom A-Z Home Study Course" and publisher of the free weekly ezine $mart Money New$ To subscribe, send an email by clicking on this link --> mailto:join-smart_money_news@nova.sparklist.com or sign up at her web site: http://www.creativefinances.com
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