- Your Financial Advisor’s Conflicts of Interest
If you’re working with a registered investment advisor (RIA) firm or financial advisor, you’ll likely encounter some conflicts of interest that arise from your advisor’s compensation arrangements. Some advisors have legal obligations to disclose such conflicts, but others don’t. When… read more…
- What Is Total Return?
Many investors look at their portfolios piecemeal. They measure an asset by how much money it made, or by growth. For investors taking a comprehensive view, however, there is the idea of Total Return. It includes dividends, capital gains, payments… read more…
- What Is Capital Appreciation?
If you own any investments, capital appreciation is probably your goal. Capital appreciation occurs when an investment asset gains value as reflected by its market price. When a stock’s price goes up, say, or when a home’s property value increases,… read more…
- What Is a Pyramid Scheme?
A pyramid scheme is an investment scam. Often they are business opportunity scams that solicit people to pay to distribute products or services. They, in turn, recruit additional distributors. Many people think of supplement sales when they think of a… read more…
- CFA vs. MBA: Understanding the Differences
There is a wide variety of training for financial, investment and business expertise. Two of the most readily recognized and broadly accepted designations are the charted financial analyst (CFA) designation and the master of business administration (MBA) degree. Understanding the… read more…
- Operating Income vs. EBITDA: What’s the Difference?
When assessing the financial performance of a corporation, there are numerous useful metrics you can examine. Two of the main ones are operating income, which is profit minus operating expenses; and earnings before interest, taxes, depreciation and amortization, more commonly… read more…
- What Is an Annuity Fund?
If you own an annuity, the part of your contract that earns returns is called the annuity fund, and it’s important to understand how it works for different types of annuities. In other words, all three of the primary categories… read more…
- How to Invest $2 Million for Income
Having $2 million to invest can ensure a lifetime income stream, provided it is wisely invested. So if you have managed to amass such a sum – whether through prudent money management, a lottery win or an inheritance – you should think… read more…
- CIMA vs. CFA: What’s the Difference?
Financial advisors can earn a range of certifications and designations indicating their specialty and expertise. Two popular designations are CFA (chartered financial analyst) and CIMA (certified investment management analyst). CFA is a common designation that shows someone has a background in investment reporting and analysis. CIMAs, on the other hand, focus on strategic financial management.… read more…
- Annuities vs. Certificates of Deposit (CDs)
There are many savings options for retirees, ranging from 401(k)s to IRAs, and even HSAs. But there are other savings vehicles worth considering as well. A fixed annuity provides retirees with regular payments. But a bank certificate of deposit (CD) or… read more…
- All About Holding Companies and Parent Companies
A holding company is a firm that doesn’t produce goods or services, but rather only has investments in other firms. Most businesses are organized as operating companies, meaning they manufacture items or provide services. Essentially, a holding company invests in… read more…
- Bonds vs. Annuities for Retirement Income
Retirement income can come from numerous sources, including your employer’s 401(k) plan, an individual retirement account and taxable brokerage accounts. Bonds and annuities can also help create regular income, but they work in different ways. That’s because one is a… read more…
- Fundamental Analysis vs. Technical Analysis
Investing in stocks is a great way to build wealth and save for retirement, especially when you’re younger. Fundamental and technical analysis can help you turn your stock market strategies into actual buy and sell decisions. Technical analysis looks at… read more…
- FRM vs. CFA: Which Is Right for You?
The work of a financial risk manager (FRM) and a chartered financial analyst (CFA) can overlap, but they have their own specialties. FRMs identify, price and mitigate risk, while CFAs generate financial analytics and assess security markets and trends. Learn the basics… read more…
- CMA vs. CPA: Which Should You Choose?
Finding the right financial professional can be a bit of work. Even when you’ve narrowed the focus of precisely what you need, you may still have trouble finding the right expert to help you. When it comes to various accounting… read more…
- CFA vs. CPA: What’s the Difference?
When it comes to picking an expert to help you manage your money, two of the more common types of experts are CPAs and CFAs. The former certification is typically earned by accounting professionals, while the latter certification is earned… read more…
- How to Write a Contract for the Sale of a Business
Selling a business involves a lot of paperwork and a good contract. A business sale agreement is a legal document that describes and records the price and other details when a business owner sells the business. It is the final step… read more…
- Fixed Annuities vs. Variable Annuities
Some investors use annuities for a guaranteed income and as a retirement planning strategy. While there are many variations of annuities, two of the most common types are fixed and variable annuities. Here’s an overview of these two types to… read more…
- Random Walk Theory: Investment Guide
Random walk theory holds that short-term and mid-term price movements of a specific stock appear to be random and thus are unpredictable. Using a share price’s past movements, for example, is an unreliable means of projecting its future direction. Understanding… read more…
- How Do Dividends and Capital Gains Differ?
There are generally two paths to building wealth through investments: dividends and capital gains. They can both fuel growth but in different ways with different tax implications. Understanding dividends vs. capital gains is an important part of managing your investments… read more…
- Does an Annuity Belong in Your 401(k)?
Annuities can help you create additional income in retirement beyond of what you expect to get from your 401(k) or a similar tax-advantaged account. Thanks to the SECURE Act of 2019, purchasing an annuity from a 401(k) is now a possibility. But does an annuity in a 401(k) make sense for your financial situation? It’s an… read more…
- Whole Life vs. Universal Life Insurance
Whole life insurance covers you for the rest of your life, but universal life insurance offers much more flexibility. They are both types of permanent life insurance, which means they have a cash value component. However, whole life insurance can… read more…
- Buy-Side vs. Sell-Side Investment Analysts
Reading up on investment analysis can help you better understand market trends as you make decisions in your portfolio. Buy side vs sell side analysts are two very different approaches to investing. If you’re unfamiliar with those terms or how… read more…
- A Guide to Efficient Market Theory
Efficient market theory, or hypothesis, holds that a security’s price reflects all relevant and known information about that asset. One upshot of this theory is that, on a risk-adjusted basis, you can’t consistently beat the market. The theory, which is… read more…
- Fixed vs. Fixed Indexed Annuities: What’s the Difference?
Annuities are insurance contracts where you pay a premium upfront in exchange for future payments. They can add an income stream to your retirement plan. Two common types are fixed annuities, which provide a set rate of return, and fixed indexed annuities, which link returns to a market index for the chance of higher growth.… read more…