photo by Aaron Huber via Unsplash
Investing Basics

Should beginning investors buy a REIT?

We’ve talked about asset allocation for beginning investors, and the importance of diversification too. You might have heard real estate mentioned as a diversifier. It has a relatively low correlation to the stock and bond markets. The easiest and most efficient way to invest in real estate is through a REIT.   What is a …

Photo by Noora Alhammadi via Unsplash
Behavioral, Rules of Finance

Four things beginning investors should do to prepare for recession

Right now the stock market is strong and there is low unemployment. The economy is in good shape. Some people in the field have been warning that we are due for a recession or bear market in stocks. What’s a beginning investor to do? There are some facts that you need to know first. “Fear, …

cesar-viteri-books-unsplash
Behavioral, Investing Basics

What’s the most important thing a beginning investor needs to know to be successful?

Note: this article contains affiliate links. “You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away, know when to run.” — Kenny Rogers Contrary to popular belief, one of the most valuable tools for a beginning investor is not knowledge of stocks or money or numbers, but …

Vincent Van Zalinge via Unsplash
Investing Basics

Ready, aim… are target date funds good for beginning investors?

These kinds of funds grow more conservative (have more in bonds and cash) as they approach the specified date. They make life a lot easier for beginning investors and those who want to “set and forget” some or all of their investments. The fund does the work for you. They’re not appropriate for every investor, …

Photo by Matt Artz via Unsplash
Investing Basics

Why index funds are hot, hot, hot and good for beginners

Using index mutual funds in a portfolio is a great tool for beginning investors. They provide diversification (explained in detail in this article) pretty cheaply. You may also have heard of indexing as “passive investing”. Want to crush your investing game? “By periodically investing in an index fund, for example, the know-nothing investor can actually …

Fabulous Monthly Tips

Take stock…of your stocks (and the rest of your finances) for fall

Very punny, I know! Now that August is coming to a close, if you haven’t done so already, now is a good time to review your finances for the remainder of the year. “In the depth of winter I finally learned that there was in me an invincible summer.” – Anton Chekhov School Do you …

Investing Basics, Uncategorized

Three reasons stock funds are good for beginning investors

Investors who are new to finance, or those who don’t have a lot of time to invest (pun intended!) often find stock mutual funds to be good investments for them.   “An investment in knowledge pays the best interest.” – Ben Franklin   Stock (equity) mutual funds buy shares in companies. Some funds are actively …

Behavioral

Are you overconfident in your investment decisions?

Investing, as noted before, doesn’t have to be complicated, even for beginners. If you know what your financial goals are, and you have matched your investments to your goal timelines (cash for short-term, stocks for long-term, etc.), then you can feel pretty satisfied with your decisions. Sometimes good choices don’t lead to success right away, …