- Annuities vs. Life Insurance: Key Differences
You may want to consider both annuities and life insurance for your long-term financial plan. Essentially, you purchase life insurance in the event you die sooner than expected and you buy an annuity in the event you live past your… read more…
- How Much Do Annuities Pay?
When planning for retirement, an annuity is one option to consider for creating an additional stream of income. With this type of insurance contract, you can receive payments on a schedule that you determine, but there’s one key question to… read more…
- Hedge Funds vs. Mutual Funds: Key Differences
Hedge funds and mutual funds seem to confuse investors. Usually, rich investors favor hedge funds, while all different types of investors use mutual funds. Understanding a hedge fund vs mutual fund can help investors select the best option for their… read more…
- Home Equity Loan vs. Cash-Out Refinancing
Owning a home is an expensive venture. But your home could be earning you money through equity and it might be time to convert that equity into cash. You could lower your interest rate, convert equity to cash or both through… read more…
- NASDAQ vs. NYSE: Key Differences
American stocks trade primarily on the New York Stock Exchange and NASDAQ. The NASDAQ has a reputation as a more high-tech exchange. Meanwhile, the New York Stock Exchange, or NYSE, has a stodgier, but safer, reputation. Learn the similarities and… read more…
- Betterment vs. Wealthfront
Not all retail investors have the time or inclination to manage their own portfolio of stocks and bonds. In addition, paying a professional to assess their needs and guide them as they buy and sell securities may not be the… read more…
- Federal Reserve Economic Data (FRED)
Data collection is one of the least appreciated but most important services the federal government provides. Much of its research focuses on business, economic and financial phenomena, and its data are disseminated at no cost to help U.S. companies, academics,… read more…
- SRI vs. ESG: What’s the Difference?
Socially Responsible Investing and Environmental, Social and Governance Investing have both risen in popularity among socially conscious investors. Learn the basics of each, how they differ and which option is best for your investment strategy. To find the right investment… read more…
- How to Use Gift Planning in an Estate Plan
Gift planning can be a key element in an estate plan. If it is done properly, an estate plan can ensure that your assets are given to the people and organizations you care about and it also minimizes the impact of… read more…
- Top Down vs. Bottom Up Stock Analysis
A successful portfolio requires a consistent strategy for analyzing stocks (or any security). Successful investors create long-term goals and metrics to help them decide which stocks and funds to buy and sell. They think about how each stock or fund purchase… read more…
- Market Orders vs. Limit Orders
A transaction order is a set of instructions to buy or sell a security, such as a stock, and it sets the conditions under which you want that transaction to happen. If a broker manages your portfolio, your transaction order will… read more…
- Alpha vs. Beta: A Guide for Investors
Business students call them the “quants.” They’re the people who can look at the world through a complex frame of numbers. They make investment choices based on reams of data that spin most people’s heads. And they make an absolute fortune… read more…
- Differences Between Short Term vs. Long Term Capital Gains
When you sell something, you’re likely looking to profit from it. Capital gains are profits from an asset sale, like your home, business, or stocks. Capital gains come in two different forms: long-term and short-term. Each faces a different tax… read more…
- Fiscal vs. Monetary Policy: What’s the Difference?
Governments often influence the economy through fiscal and monetary policy. A central bank, such as the Federal Reserve in the United States, typically sets monetary policy. National governments, like the U.S. Congress, may decide fiscal policy. Learn the key components… read more…
- Call Option vs. Put Option: What’s the Difference?
Investors can use options to hedge their portfolios against loss. Also, they can help buy a stock for less than its current market value and increase gains. Call vs. put options is the two sides of options trading, respectively allowing… read more…
- Revenue vs. Profit: What’s the Difference?
Whether you’re a business owner or an investor, understanding the key differences between revenue and profit is important. You also should know how to calculate each. Revenue and profit measure business performance and relate closely. However, they are also quite… read more…
- Yield vs. Return: What’s the Difference?
People often use yield and return interchangeably. These generally refer to what you’ll earn from a fixed investment, such as a bond. However, there are some important differences to note when defining the terms yield and return. Learning the basics… read more…
- How Investors Can Avoid the Value Trap
The term “value trap” can be used to describe stocks or other investments that may seem like a bargain but shouldn’t be taken at face value. Knowing how to spot a value trap and how to build a portfolio using… read more…
- What Is the Flight to Quality?
Flight to quality describes how investors react and manage their portfolios during periods of stock market volatility. This strategy favors more conservative investments in lieu of riskier ones. Here’s what flight to quality means and how it can potentially impact… read more…
- All About the Federal Unemployment Tax (FUTA)
If you qualify for unemployment benefits, you’ll likely receive them via the Department of Labor’s Unemployment Insurance (UI) programs. But someone has to pay for the benefits that unemployed workers receive. Enter the Federal Unemployment Tax Act, or FUTA tax.… read more…
- What Is an Investment Advisor Representative (IAR)?
An investment advisor representative helps advisory firms offer financial advice to investors. If you’re looking for assistance with your investments, you may consider working with an investment advisor. Such an advisor may assign a representative to work with you directly.… read more…
- What Is The SECURE Act?
The SECURE Act provides more part-time employees with access to tax-friendly workplace retirement plans like 401(k)s. Signed into law by President Trump on Dec. 20, 2019, it also lets individual retirement account (IRA) holders save in these plans indefinitely with… read more…
- Private Equity vs. Venture Capital
When firms or people invest in companies, there are a few different ways to go about it. For example, there are venture capitalists and private equity firms. Both have interests in helping companies, but how they go about it isn’t… read more…
- Market Value: Definition, Examples and Calculation
Market value refers to the price an asset, security or company would fetch in a competitive, open market. It is influenced by factors such as supply and demand, economic conditions and the asset’s perceived value by buyers and sellers. For businesses, market value often relates to the total value of a company’s outstanding shares, while… read more…
- What Is Double Taxation and How to Avoid It
While death and taxes may both be certain, taxation is the only one of the two that can happen twice. If you own a business, the last thing you want is to get taxed on your income more than once.… read more…