If you’ve been listening to the financial media of late you have no doubt heard some of the so-called experts prognosticating on the prospect of the next big bear market. Unquestionably, the stock market is at another crossroads, and its 7 percent increase year-to-date belies the concerns that most people have over the global economy. So, gloom and doom forecasts by a media anxious to sell papers or air time, should not be at all surprising. Even if we were to buy into the media hype, should we be at all concerned? In the overall scheme of things, should bear markets even matter to us?
If you’re a beginning investor, it’s likely you’re concentrating on building your portfolio. But as important as it is to build that portfolio, you should also ensure that it’s diversified.
Why is a diversified portfolio so important?
There are three key reasons why diversifying is important:
The American Institute of CPA’s (AICPA) recently published a list of personal finance trends that we should all be concerned about. These trends highlight the fact that almost 63 percent of Americans today are unable to pass a basic financial literacy test.
Here are the troubling trends, as well as some tips on how to avoid them:
If you’re new to investing, some of the information on the Internet can be downright confusing. While investing itself is fairly straightforward, many people find themselves shying away from the entire process because they simply don’t understand the terminology, which can be somewhat overwhelming.
So here is a rundown of common investing terms that every investor should become familiar with:
Many investors have heard the term “asset allocation” at one time or another. From the first time we sign up for a 401k plan at the office all the way through the conversations we have with financial planners in retirement we are bombarded with messages about the importance of proper asset allocation. But what is asset allocation, and what does it mean to investors saving for the future?
An increasing number of people are starting to understand that their real risk exposure is not in the costs associated with repairing or replacing their car or home, rather it is in the far more costly liability risk. Yet, most people drastically underestimate their personal liability risks. In addition, the claims associated with personal injuries occurring on one's property can far exceed the repair and replacement claims made as a result of covered perils. The cost of a dog bite recently exceeded the $1 million mark in a recent claim.
Most consumers typically have both a credit card and a debit card. Of course, the biggest difference between the two is that a debit card will immediately take money out of your bank account when used, unlike a credit card, which will pay for the purchase and later add the amount of the transaction to your monthly statement.
But are there any other differences between the two?
It turns out that there are some major differences that you may not be aware of. Also, it’s important to note that both debit and credit cards have their own distinct advantages and disadvantages.
If you’re interested in beginning to invest but are nervous, or simply don’t have a lot of money to invest, why not start slow?
There are a multitude of ways to get started without risking a lot of money in the process. If you have $1,000 and are ready to start investing, here are some ways to do so: