Money put to work to earn a return on your behalf is investment capital. Appreciation, income or a combination of the two generates more capital. Growing capital can create a retirement nest egg. Investments can be in the form of ownership (equity) or loanership (fixed income) dollars.
Are you a retiree attracted to stocks paying high dividends? It is important to focus on an investment’s prospective total return, and not solely its yield, as higher yields often signal greater risk.
Start saving now so you avoid a Titanic investment failure later! Remember:you can always work for money, but it's much better to let money work for you.
A time (falling markets) and a place (foreign markets) are both environments where actively-managed funds have generated better performance than passive index funds or ETFs.
These 10 Vanguard funds offer low fees and intelligent strategies that will help you squeeze out the most income bang for your buck.
This article suggests that the best reason to buy REIT shares is the vast array of real estate sub-sectors they open up to individual investors. This may be true, and REITS can be useful when constructing a diversified portfolio. However, the author failed to discuss the risk factors. Shares in REITS fluctuate in value just like shares of other types of common stock.
Many Baby Boomers have failed to adequately prepare ready for retirement, but younger workers have a chance to do better ... if they make the most of their 401(k) plans.
That's what the average retiree receives from Social Security. How much can you accumulate to supplement it? Maurie Backman shows you in The Motley Fool.
Retirement was cited as the top savings priority by only 10% of millennials, lagging other goals. Although understandable, it is an expensive mistake.
Despite outflows following high-profile management changes, Morningstar finds that such a flux has no impact on fund performance.
Wondering if a leveraged ETF makes sense? It can deliver huge gains. However, it can also magnify losses in a bear market.
There is a lot going on when you leave a job. Whatever the reason for leaving, don't forget to take care of your 401(k) plan when making a change.
Don't cheat yourself out of $500,000. Getting started, now, can result in double the money, later. The Motley Fool shows you why.
The proper balance of taxable, tax-deferred, and tax-free assets can provide you with hundreds of thousands of dollars more in spending power.
Among other reasons, younger people view Roth IRAs as a hedge against the risk that tax rates and brackets will rise in the future. Why risk withdrawing money from a traditional IRA and getting taxed at the higher rates?
The program requires employers in the state that do not already offer a retirement savings plan to employees to automatically enroll employees in the OregonSaves program at 5% of pay.
Rianka Dorsainvil, a financial advisor to millennials, explores all the 401(k) options available to people when change jobs.
What does one do when faced with the decision to either invest their money or use it to pay off long-standing debts?
You may not earn a lot of money as you begin your career, but there’s one thing you have more of than richer, older folks – time. With time on your side, saving for retirement becomes a much more pleasant (and exciting) affair.
Warren Buffet had an epiphany one day when he was 11 years old. He discovered the eighth wonder of the world. It can make hundreds of thousands of dollars difference in your own portfolio.
Billionaire investors like Ray Dalio are stocking up on gold. Here's the ideas and strategies on gold from four elite investors, and what we can learn.
Many people think there's little they can do to improve the financial health of their retirement. They may be wrong. Investing even small amounts can make a big difference if started a young age.
Year to date, about one-third of the S&P 500 Index’s total return is from five companies. Could this mean the death of diversification?
Investors are constantly fighting the last war by trying to hedge out risks after they’ve already occurred. Short-term fears often disrupt the most well-intentioned long-term plans. Most normal investors don’t pay attention to the financial markets until something bad happens. Then they’re all ears and looking to do something, anything to allay their fears.
What is a fiduciary? Learn why it is important to your financial well-being. Find an advisor with the best fee structure. Look before you leap from your 401(k) to an IRA rollover.
Dodge & Cox, Vanguard, and American Funds have the highest percentages of rated funds that are Gold as well as more than three-fourths of their rated funds earning medalist status. These firms are well positioned to deliver strong results.
Some people say they don't. Bob French, Chartered Financial Analyst, shows how they do in this article by providing convincing evidence.
What you think your risk tolerance is, and how you act when the stock market drops 20-50 percent, may not be the same. Morgan Housel shares some of the most dangerous terms financial pundits and experts use all the time.
WSJ Wealth Expert Peter Lazaroff writes that you can be highly active using index funds and very passive using active funds.
Millennials can take full advantage of compound interest. The most valuable asset younger people have is time. When you combine it with compound interest, great amounts of wealth can be accumulated.
It's true that missing out on even a few years of retirement plan contributions can have a significant impact on your long-term savings. But while you can't go back and change the past, as long as you're still working, you can aim to compensate by ramping up your savings while you still have a chance.
Be sure to have set aside some cash reserves, first. When you have $500 beyond what's in your emergency fund, here are some options.
You may know that an HSA is an account that lets you use tax-free money to pay some of your medical and health expenses. On top of that, the HSA is not too much different than a Traditional IRA.
Money in the bank is risk-free because it's guaranteed, right? Well, your principal is guaranteed, but your purchasing power isn't. You need to know that there are different types of risk—inflation being one of them. Invest accordingly.
Index investing has become quite popular. If you're not investing in index funds, you might even feel left out. If you don't understand what indexing really means, Bob French at Retirement Researcher breaks it down for you.
Everyone has heard of the S&P 500 and Dow Jones, but what’s the difference between the two? And which one should you trust?
College endowment funds have access to the best and brightest minds in the world of investing. Can you compete with them? Perhaps, if you invest in index funds.
Leave it to Wall Street to create endless ways to repackage indexes to have something new to sell. Do we need more indexes—and EFTs that invest in them—than actual stocks?
Owning stocks can provide a needed inflation hedge for retirees. Mixing in a laddered bond portfolio can protect against sequence risk during the early years of retirement.
Dividend investing is one way to build an income-generating portfolio during your working years. By the time you retire, it will help you achieve your income goals. In addition, reinvesting the dividends allows you to take advantage of dollar-cost averaging.
Let's say you invested $100,000 over 30 years at a conservative 5-percent annual rate of return. With a 0.70-percent annual expense ratio, you'd have $350,000 after three decades, but you will have lost $82,000 to fees and foregone earnings.
Not many people are suited for investing directly in individual stocks. For those who are, a strategy of owning stocks in companies with a history of regular dividend increases helps them build a portfolio of increasing income. A growing dividend stream can pay off during retirement.
Dividend growth investing is a very simple but effective wealth building strategy. The Dividend Growth Investor reviews a list of dividend increases with at least a ten-year streak. The 13 companies that met the criteria are listed here.
Holding a passive index of stocks usually outperforms an active approach. That's why you should have these three index funds in your portfolio.
Is an annuity a good investment? For some, the answer is "yes," for others, it is "no." The best use of an annuity is to protect against longevity risk (running out of money because you live too long). There are other issues to consider.
Dirk Cotton has always believed that life annuities can play a critical role in many retirement plans but his appreciation for them has increased over the years. For anyone who is on the fence about life annuities, he shares some different perspectives that may help you decide.
Don't get suckered into a Ponzi scheme. Know the red flags to look out for and you can save thousands of dollars...and many hours of sleep.
Although past performance is no guarantee of future results, looking at the history of the market’s bull and bear markets helps to gain a fresh perspective on the benefits of long-term investing.
Motley Fool Answers explores the growing trend of values-based investing including how to evaluate the environmental, social, and governance impact of publicly-traded companies.
Get Rich Slowly compiled a chart of some of the most well known and best reviewed online brokerages for new investors.
The number of publicly-traded U.S. stocks is shrinking at the same time their market cap expanded vis-a-vis foreign markets.
Retirement experts, the media, and others have lamented the decline of defined-benefit pension plans. 401(k) participants can create a pension-like source of retirement income by using a portion of their assets to buy a longevity income annuity.
Haven't saved enough for retirement? You need to do all that you can to build your nest egg. Here are seven ideas to boost your retirement income.
The VanEck Vectors Fallen Angel High Yield Bond ETF, which celebrated its fifth anniversary of trading on Monday (April 10, 2017), has emerged as one of the standouts of the fixed-income ETF space.
Millennial home buyers are going to send ripples through the real estate market if they can pare down debt and save money for a down payment.
Wade Pfau, Ph.D., CFA, takes a look at valuation-based asset allocation.
Certain IRAs will allow you to invest in things like IPOs and mortgages held for investment. Here’s what you need to know.
It's a paid article, but still a good explanation of short selling for those not familiar with it. Schwab's explanation includes example scenarios of how short selling can play out.