Since one person’s good investment choice may be a huge mistake for someone else, what factors should you consider when deciding upon a potential investment?
In investing, the only hard and fast rule is that past performance never guarantees future returns. Though you should try to understand why a security acted in a specific way in the past,… Read more
Was Miguel Cervantes’ Don Quixote fighting imaginary windmills or market volatility when he said, “Don’t put all of your eggs in one basket?” Putting all of your assets in one basket doesn’t keep them as safe as you might think because there is always a risk that you might lose them all at once…. Read more
How can you increase your retirement income and avoid risk? Many people simply put their money in the bank. But the good news is that there are other options for reducing risk and generating more retirement income.
While banks present a lower risk than the markets, bank deposits historically have low yields…. Read more
Recently, a couple asked me what they should do with their money in the bank. I hear this question quite often. However, as every individual investor’s situation and circumstances are different, there is no standard response that fits everyone. To figure out an answer for this particular couple, I asked:
What’s the intended purpose of this money?… Read more
At an initial meeting, a new retiree told me, “I’m not really sure what stocks I own.” When I asked how he had put together his portfolio, he explained that some of the positions came from an inheritance, while others… “Well, I’m not really sure,” and a couple of stocks were recommendations from “this guy who sits next to me in shul.” When I asked him if that guy still thinks they’re good stocks,… Read more
If you are looking for an investment with a steady yield that is generally considered more predictable than the stock market, consider buying bonds. To watch a short explanatory video about bonds, go here: Profile-financial.com/bonds.
What are bonds?
When you buy a bond, you essentially lend money to a government,… Read more
What’s the best way to save, and how much money should you save?
Most of the clients that I speak with have saved a lot of money in their U.S. bank and brokerage accounts. As such, we normally talk about the best strategies they can use to invest that money. But for folks who haven’t accumulated a lot of savings,… Read more
Do you want to minimize risk in your retirement accounts? If so, consider diversifying your holdings to include foreign investments.
Investing internationally may boost your returns and minimize risk, as you’re “geographically diversified” and not relying on any single country’s economic performance. Geographic diversification can be achieved by buying foreign stocks,… Read more
Is there a safe investment that carries little risk?
Bonds are often described as a “safe investment” since, compared with other investments, they have a smaller risk of losing principal. However, just because some people call them “safe,” that does not mean they cannot lose money. Bonds are popular because they distribute interest payments on a set schedule,… Read more
What should you do if you receive a lump sum, such as an inheritance, legal settlement, or pension payment? Should it be invested for growth or for income?
Invest for growth
A “growth investment” tries to increase the amount of money you have. Growth investments often entail some level of risk,… Read more
