Advanced Investing

5 Essential Money Moves for 2016-Read Now!

5 Essential Money Moves for 2016-Read Now!

By in Advanced Investing, Asset Allocation, Investing, Money Management, Taxes, Tips | 6 comments

A quick google search of ‘essential money moves for 2016’ turned up 7,760,000 responses. I’ve done the hard work for you and culled the top money moves into 5 actionable money tips for 2016. Schedule an hour or two and get your finances in order with these 5 essential money moves. (Number 5 may surprise you!) 1. Examine your 401k, 403b or Other Workplace Retirement Account My spouse has a TIAA CREF account in his workplace 403b. For months I procrastinated the task of evaluating the investment choices in the fund. My goal for this account was to choose index...

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Best Asset Allocation Based On Age & Risk Tolerance

Best Asset Allocation Based On Age & Risk Tolerance

By in Advanced Investing, Asset Allocation, Investing, Reader Question | 13 comments

How To Figure Out the Best Asset Allocation For You Graham from Moneystepper asks; What metric (rule of thumb) would you recommend for asset allocation based on age and risk appetite? Graham’s question is not as simple as it might seem. Let’s attack it from several investment angles and throw in a bit of research as well. Quick Primer: What Is Asset Allocation?   The asset allocation decision divides total investable funds by percent into specific investment categories. An asset allocation represents the investor’s choice of broad asset classes and the percentages distributed across the categories. The two most common...

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Is a 10% Return Good or Bad? How Are Your Investments Performing?

Is a 10% Return Good or Bad? How Are Your Investments Performing?

By in Advanced Investing, Asset Allocation, Bond, Mutual Funds, Stocks | 0 comments

Are Your Investment Returns Good or Bad? Do you know how well your investments are performing? Do you know the quarterly and annual rate of return? What about how well your investments are performing when compared with a standard benchmark? Ever since a friend asked me to look over her investments and tell her if she’s doing well I’ve wanted to help investors answer this question; “What are my investment returns?” Most individuals don’t know if their investment returns are good or bad. Even investors with financial advisors don’t know how to evaluate their rates of returns. Many financial...

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What Does Price Earnings Ratio Mean? Use the PE for Smart Investing

What Does Price Earnings Ratio Mean? Use the PE for Smart Investing

By in Advanced Investing, Asset Allocation, Investing, Mutual Funds, Stocks | 2 comments

Understanding the PE Ratio Most investors are best suited to invest in a diversified portfolio of index funds in an asset allocation in line with their risk tolerance. The research is quite clear that it is exceedingly difficult to beat the overall stock market over time. That said, there are those who like to analyze individual stocks and attempt to beat the market. For those active investors, as well as those interested in understanding a bit more about investing, I’ll cover some of the popular stock evaluation ratios in this series. You’ll find out the answer to the question,...

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Six Dangerous Investing Myths

Six Dangerous Investing Myths

By in Advanced Investing, Asset Allocation, Bond, Guest Post, Investing, Stocks | 12 comments

Guest post, Rob Bennett Investing is both an art and a science. There are passionate supporters of a wide range of investing methodologies and the research can be tweaked to support various approaches.  When considering the index fund investing approach, there are considerable ways to view the idea that it’s difficult if not impossible to beat the long term market averages. Following are several investing myths, from a valuation informed approach.  What do you think of these investing myths, are they accurate or not? Valuation Informed Indexing Approach Mr. Bennett advocates Valuation-Informed Indexing. This strategy calls for the investor to increase his...

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Market Forecasts-Can Strong Fundamentals Predict Stock Market Returns?

Market Forecasts-Can Strong Fundamentals Predict Stock Market Returns?

By in Advanced Investing, Economics, Investing, Stocks | 3 comments

Do Strong Fundamentals Predict Stock Market Returns? With the recent stock market crash, you may be wondering how to predict stock market returns. Do you think it’s possible to predict stock market returns? Stocks can remain overvalued for a long time before a crash. For example, back in 1996 former Federal Reserve chairman, Alan Greenspan wrote about irrational exuberance driving stock prices up to unsustainable levels. He claimed the markets were overvalued and implied they could not keep up their tear. Yet it took several years for the dot-com bubble to burst and stocks to return to more reasonable...

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