Archive for the 'Investments' Category

Mutual Funds – Test Your Knowledge

Friday, May 1st, 2009
Mutual Funds

Mutual Funds are a cornerstone of retirement and investment planning.  But they are widely misunderstood, and these misunderstandings can cost you.  So how much do you really know about mutual funds?  In commemoration of Financial Literacy Month, the Associated Press has created this short quiz to test your knowledge of mutual funds. Read the rest of this entry »

Certificates of Deposit CD Ladder

Wednesday, April 29th, 2009
certificates of deposit

This article addresses an investment strategy known as a CD Ladder. With the uncertainty in today’s economy, many investors are taking a second look at certificates of deposit as a part of their investment and/or retirement portfolios.  Certificates of deposit (CDs) offer the advantages of guaranteed interest rates, guaranteed return of principal, and the security of FDIC insurance.

On the flip side, the disadvantages of certificates of deposit include relatively low interest rates and not having access to your money until the CD matures.  These disadvantages compound one another when you consider that to get higher returns on certificates of deposit, you have to invest in longer terms…typically 5 years.

There is, however, a strategy that allows you to enjoy the advantages of certificates of deposit, while minimizing the disadvantages of certificates of deposit.  The strategy is called a CD Ladder. Read the rest of this entry »

Investment Diversification

Thursday, April 23rd, 2009
Investment Diversification

Investment diversification has long been one of the standard pieces of advice we hear from investment advisors.  It’s the age-old adage of “Don’t put all your eggs in one basket.”  It’s too easy to forget this principle during a booming stock market or real estate market, when everything is going up in value.  But given the collapse of stock prices and real estate prices in late 2008 and early 2009, it’s a good time to remind ourselves of the soundness of a strategy of investment diversification. Read the rest of this entry »