Investing Basics

What are bonds and how do they work?

So far, here at Fab Fem Finance we’ve been discussing asset allocation in terms of personal finance. I thought it might be helpful to do some explainers on bonds, also known as fixed income, since some investors might need bonds to diversify their portfolio.   Packaged loans When you go to a bank and ask …

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Do I need life insurance?

There are plenty of ads for life insurance in the media, and plenty of people selling it. But is it really necessary for everyone to have a policy? In addition, there are several different types of insurance, and sometimes it’s difficult to figure out which one is right, once a need for insurance is identified. …

Investing Basics

Why shouldn’t my portfolio be all in cash?

In their investment portfolios, many women have higher amounts in (or allocations to) cash. It’s familiar, and most people know how it works. It’s considered safe because it doesn’t fluctuate in price like stocks do. You won’t look at your portfolio and see that your cash amount has dropped significantly from one day to the …

Investing Basics

Can I decrease investing risk with more than one financial advisor?

When investing, it’s important to avoid putting all your money in one asset class, as discussed earlier. But does that also mean that you should avoid putting all your assets with one advisor?   Advantages of having one financial advisor It’s important for your planner (I’ll use planner and advisor interchangeably) to have a view …

Investing Basics

In investing, what does an aggressive portfolio look like?

There is a lot of jargon in personal finance, and you may have heard people talk about their asset allocations being “aggressive” or “conservative”. But what does that mean?   What asset allocation is Asset allocation is how an investor divides up their portfolio between stocks (equities) and bonds, and also within stocks and bonds. …

Investing Basics

What is asset diversification and why do you need it?

The investing world is often divided into stocks and bonds, but each of these has a number of categories within them as well. Being properly “diversified” is having exposure to these different types of assets in the portfolio.   Market cap Stocks are often referred to by their capitalization, or how large they are: number …