In investing, you feel great when your statement shows a nice fat annual return like 12% or even 13%. Conversely, when you have a “bad” year with a negative return, you’re disappointed.
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In investing, you feel great when your statement shows a nice fat annual return like 12% or even 13%. Conversely, when you have a “bad” year with a negative return, you’re disappointed.
A BOND is a loan to a corporation, municipality, or government. When you buy a bond you are making a loan to the bond issuer. In exchange for the loan, you receive an interest payment. The amount of interest you receive is directly related to amount of risk you are taking.
I like how you broke down the stocks and bonds percentages. Do you really think we can expect an average return of over 7% over the next 30 years? My husband and I were just discussing how savings rates are so low and have been for 10 years.
Barbara Friedberg Personal Financeteaches WEALTH BUILDING SKILLS. Pay attention, be patient, don’t overspend on stuff that doesn’t last; save, invest, and you can become rich. Take action to hit your wealth target.
“Access to information is great; access to too much information is overwhelming!” Barb Friedberg
I’m in the midst of teaching a Corporate Finance class for MBA students at a local university. Some of the concepts, although rather complicated, have important real world applicability. One of those uber-important concepts is, NET PRESENT VALUE (NPV). It is a method to put a dollar amount on future cash payments. It’s great if you win the lottery and want to determine whether to choose the lump sum payment or monthly option. Or what if you or your folks want to determine the present value of their monthly social security or annuity checks.
Buy and hold versus valuation informed indexing. Get a peak into a novel take on the traditional indexing approach. What do you think?
In investing, large gains and large losses go with the territory. Rarely do you know which investments will outperform and which ones will underperform.
So, don’t judge your investing performance too frequently, either the good or the bad performers.
My earliest teacher of investment principles was my dad. He drilled this FUNDAMENTAL BOND PREMISE into me. It served me well in the beginning and still governs my investing today.
The price of a bond moves in the opposite direction of interest rates.
This is my first time checking out your site (very interesting). I am so confused on what to believe or even how to evaluate my portfolio. With the international stuff going on, BP oil spill, government legislation, mid-term election quickly approaching. I don’t know what to do. Should I strap in, hold tight and hang on for the wild ride or change my strategy?
Copyright © 2012 Barbara Friedberg Personal Finance