Estimating the Cost of College
It doesn’t take a degree in finance to see that the cost of college continues to rise. In its 2023 report, the College Board showed that in-state tuition and fees at private non-profit four-year institutions increased by 5% in inflation-adjusted dollars between the 2013-14 and 2023-24 school years.1 For many families, the lion’s share of […]
Mutual Funds vs. ETFs
The growth of exchange-traded funds (ETFs) has been explosive. In 2006, there were less than 1,000; by 2023, there were nearly 10,000 investing in a wide range of stocks, bonds, and other securities and instruments.1 At first glance, ETFs have a lot in common with mutual funds. Both offer shares in a pool of investments […]
What It Takes to Become an Accredited Investor
For the average investor, the financial landscape can sometimes feel like a complex maze with limited access to certain investment opportunities. However, within this realm exists a distinct category known as accredited investors. If you’ve ever wondered what sets accredited investors apart, this article provides an overview. Most investors don’t qualify for accredited investor status […]
Bull & Bear Markets: A Timeline
Inflation and the Real Rate of Return
The real rate of return is an important personal finance concept to understand. It’s the rate of return on your investments after inflation. The real rate of return indicates whether you are gaining or losing purchasing power with your money. So if inflation checks in at a rate of 6%, does that mean any investment […]
Your Shifting Risk Tolerance
When you created your investment strategy, your asset allocation should have reflected your goals, time horizon, and tolerance for risk. But over time, any of those three factors may have changed, and your portfolio may now need adjustments to reflect your new investing priorities. It’s important to remember that asset allocation is an approach to […]
Diversification, Patience, and Consistency
Regardless of how the markets may perform, consider making the following part of your investment philosophy: Diversification. The saying “don’t put all your eggs in one basket” has some application to investing. Over time, certain asset classes may perform better than others. If your assets are mostly held in one kind of investment, you could […]
Emotional vs. Strategic Decisions
Information vs. instinct. When it comes to investing, many people believe they have a “knack” for choosing good investments. But what exactly is that “knack” based on? The fact is, the choices we make with our assets can be strongly influenced by factors, many of them emotional, that we may not even be aware of. […]
Four Really Good Reasons to Invest
Thirty-nine percent of Americans do not own any stocks or stock-related investments, according to a recent Gallup poll.¹ Individuals may cite different reasons for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough. Why Invest? Make Money on Your Money You might not […]
The Investment Risk No One’s Ever Heard Of
Knowledgeable investors are aware that investing in the capital markets presents any number of risks, including interest rate risk, company risk, and market risk. Risk is an inseparable companion to the potential for long-term growth. Some of the investment risks we face can be mitigated through diversification.1 As an investor, you face another, lesser-known risk […]