Avoid holding individual stocks within your investment portfolio. It represents poor diversification and greater emotional attachment.
Should You Include Individual Stocks in Your Investment Portfolio?
read more
Post Categories
Should You Invest in Your Company Stock?
Usually, it’s best to maintain diversity in your portfolio and NOT purchase additional stock from the company you work for
Target Date Funds. Is Neglecting Your Investments a Good Thing?
Target Date Funds (TDFs) provide an easy “set-and-forget” investment strategy. However, they may not be appropriate for everyone, especially once you retire.
Saving for a Home Down Payment? Eight Investing Choices
Like other short-term financial goals, invest this money conservatively. Your checking or savings account may be good enough.
The Wash Sale Rule. How Investors Can Keep Clean and Avoid the Mess
If you sell a stock at a loss, then repurchase that stock (or something very similar) within thirty days, you’ve triggered a wash sale
Are You a Trader or an Investor? Or Both? What’s the Difference?
Investors are in the market for the long-term, and may not buy or sell for decades | Traders take advantage of short-term moves in the market to make quick money
Capital Gains or Income? How Are Your Investments Taxed?
Qualified dividends and selling stock that was held for > one year get the capital gains treatment. (Most) everything else is taxed as ordinary income.
Inflation is Quietly Decimating Your Savings. What to do about it
Inflation historically ranges from 2 – 3.5% and compounds over time, drastically reducing the purchasing power of your savings
Beyond Index Funds: Why Buy Actively Managed (Sometimes)
Choose an actively managed funds that aligns with your investing style, values, and risk tolerance. Use the tools provided by your financial institution to evaluate return, plus performance and risk measurements including alpha, beta, standard deviation, and Sharpe ratio.
This information has been provided for educational purposes only and should not be considered financial advice. Any opinions expressed are my own and may not be appropriate in all cases. All efforts have been made to provide accurate information; however, mistakes happen, and laws change; information may not be accurate at the time you read this. Links are included for reference but should not be considered an implied endorsement of these organizations or their products. Please seek out a licensed professional for current advice specific to your situation.
Liz Baker, PhD
I’m an authority on investing, retirement, and taxes. I love research and applying it to real-world problems. Together, let’s find our paths to financial freedom.
