Category - Investing

1
5 No-No’s for IRA Investing
2
The 7 Habits of Highly Effective Investors
3
An Index Overview, Part IV: Opportunities and Obstacles
4
Are Women Better Investors?
5
Employee Benefits For Transitioning Personnel-Employee Stock Options

5 No-No’s for IRA Investing

It is generally well-known that in an IRA account you have a wide range of investment choices. These choices are typically only limited by the custodian’s available investment options.  However, there are specific prohibited transactions that cannot be accomplished with IRA funds. Often these prohibited transactions can cause your IRA to be disqualified, which can result in significant tax and penalty, along with loss of the tax-favored status of the funds.

What’s Not Allowed for IRA Accounts?
  1. Self-Dealing.  You are not allowed, within your IRA, to make investments in property which benefits you or another disqualified person.  A disqualified person
Read More

The 7 Habits of Highly Effective Investors

As Suzanne Woolley writes in her Bloomberg post, she’s identified seven habits of effective investors. I would agree with her on these habits.

  1. Save early, and automatically
  2. Expect financial emergencies
  3. Set an asset allocation, and diversify
  4. Keep fees low
  5. Use an advisor who is a fiduciary
  6. Spend less than you earn
  7. Maximize employee benefits

I would add Avoid leverage and Avoid speculation. You should invest within your risk tolerance and risk capacity. And, think long term for retirement investing and invest more conservatively as you come closer to needing your money for college, cars, or other financial goals.

Dan…

Read More

An Index Overview, Part IV: Opportunities and Obstacles

This mini-series originally appeared in my monthly newsletter.

Legend has it, a pharmacist named John Pemberton was searching for a headache cure when he tried blending Coca leaves with Cola nuts. Who knew his recipe was destined to become such a smashing success, even if Coca-Cola® never did become the medicine Pemberton had in mind?

In similar vein, when Charles Dow launched the Dow Jones Industrial Average (the Dow), his aim was to better assess stock prices and market trends, hoping to determine when the market’s tides had turned by measuring the equivalent of its incoming and outgoing “waves.” He …

Read More

Are Women Better Investors?

Why women are better investors: study,” Reuters discusses a Fidelity investments survey and an academic study which found that women save more than men and that their investments also earn more. The survey found the savings and the investment advantage women have over men is 0.4 percent, adding “…the disparity at retirement age is anything but minor. For a 22-year-old starting out with a salary of $50,000 a year, a woman investor will outpace her male counterpart by more than $250,000.”

The article revisits the idea that people presume that men are better investors with women since less than …

Read More

Employee Benefits For Transitioning Personnel-Employee Stock Options

There are many employer benefits that just aren’t available to servicemembers.  Before separating from service, it’s important to understand what types of benefits exist, and what impact they may have on our personal finances.  This article focuses on employee stock options, specifically:

  • What are stock options?
  • Why do stock options exist?
  • Why do employers offer employee  stock options?
  • What type of employee stock options are there?
  • Tax treatment of employee stock options
What is a stock option?

A stock option is simply a contract that allows you to purchase or sell shares of stock (usually in blocks of 100 shares), …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login