FarmTogether vs Acretrader | Which Farm Crowdfunding Platform is Best for You
Are you looking for a new investment platform and want to diversify your asset classes? You might consider investing in farmland. FarmTogether and AcreTrader are two crowdfunding platforms that make investing in farmland more accessible. This diversified agrigultural investment is ideal if you live in an urban area or don’t have the hundreds of thousands of dollars it typically takes to invest in farmland. Is Farmland a Good Investment? If you’re looking to invest, but want to invest in something less volatile than the stock market, you might consider investing in agriculture. Historically, farmland has been less volatile than the stock market, enabling you to ride out down market years with an extra layer of stability. *This article contains affiliate links to help pay for this website. There are several ways that farmland gives back in returns. First, due to its limited supply, farmland increases in value. This provides...
read more5 Best Profitability Investor Ratios for Successful Stock Picking
Why are Financial Ratios Important? By analyzing investor ratios, stock pickers can seek out winning companies for purchase and eliminate the duds. The major investment ratio categories include profitability, valuation, liquidity, and debt. Profitability ratio analysis explains whether the company is making and keeping more money today than in the past. Valuation ratios uncover whether the firm seems to be fairly priced or not. Debt ratios uncover a company’s debt levels and liquidity helps investors understand how much cash is available to run the business. You might find a growing company that’s increasing profits, but if the firm is selling at an excessive valuation or hass excessive debt, then your future profit potential is limited. This article will focus on the most important profitability ratios, why they are important, and how to evaluate them. I was a portfolio analyst and stock picker. It was fun to dig into the...
read moreShould I Invest In a Target Date Retirement Fund?
Are Target Date Mutual Funds the Holy Grail for Investors? Guest contributor; Lawrence J. Russell Learn all about a TDF and the answer to, “Should I invest in a target date fund?” question. Target date retirement funds (TDFs) are usually “fund-of-funds” investments, which combine stock, bond, cash, and sometimes other investment asset classes. The target date fund buys stock and bond mutual funds or exchange traded funds in specific proportions, depending upon the final “year”. Thus, target date funds add a layer of management expenses on top of the expenses of these underlying funds. The primary added value of target date funds relates to set-it-and-forget-it nature. Over the years, TDFs follow a planned and evolving asset allocation strategy that is designed to prepare for retirement. The target date fund performs annual or more frequent rebalancing and also provides “one-stop shopping” for a specified collection of diversified asset class funds. Is...
read moreTarget Date Funds Pros and Cons
What is a Target Date Fund? Are you interested in buying one fund which holds all the stock and bond mutual funds you need? A target date fund (TDF) is like a big box retailer or a shopping mall. At the mall, you can buy everything you need at one destination. In a target date fund, you get all of your investing needs met within one fund. How the Target Date Retirement Fund Works A company, such as Vanguard, Fidelity or countless others create a mutual fund or exchange traded fund (ETF) for investors expecting to retire in a specific year. The fund offers several stock and bond mutual funds or ETFs in one set-it-and-forget-it investment. *This article contains affiliate links to help pay for this website. The fund’s asset allocation starts out aggressive with a greater percentage in stock funds. As the target date, or your retirement date...
read moreMarketwatch Lazy Portfolios Drill Down
“Investing should be dull,” according to Nobel Prize winning economist Paul Samuelson. “Investing should be more like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas” Are you interested in a market beating approach with less volatility? Do you want a set it and forget it investment plan? If you answered yes to any of those questions, then you must check out The Wall Street Journal, Marketwatch.com, Paul B. Farrell’s Lazy Portfolios and more. 5 Rules of a Lazy Investment Portfolio- Tips from “Build Your Own Lazy Portfolio” These tips give you the “why” behind the Lazy Portfolios. 1. Be content as a singles hitter. Or, put another way, bet on every horse. Just buy the market through market matching index mutual funds. In a study of 66,400 investors, behavioral finance professors Terry Odean (U.C. Berkley) and Brad Barber (U.C. Davis) found “The...
read moreTop 3 Tips for Getting a Mortgage – Be Ready to Make Your Real Estate Offer
Take These Steps Before You Buy a Home So you’re thinking of buying a home—congratulations! Between mortgage payment calculators, reality agreements, and FICO scores, there is a host of information to process as you make your home ownership dreams a reality. Pre-qualifying and understanding the process before getting a mortgage will give you a leg up on the competition, when it comes time to buy a home. Buying a house is an exciting and nerve-wracking time, but these 3 tips will take the mystery out of the mortgage process. 1. Know Your Finances Before You Apply for a Mortgage Before you jump into a mortgage, you need to be aware of your own finances and how they stack up against the requirements. There are three numbers that potential home buyers should know: their credit scores, debt-to-income ratio, and down payment amounts. Credit Score The minimum credit score typically needed...
read moreNet Present Value Advantages and Disadvantages
Real Life Net Present Value (NPV) Example While teaching a Corporate Finance class for MBA students at a local university, I was asked a question that underscored importance of the net present value concept. Although NPV might be considered a panacea, there are definitely some pros and cons. Net present value 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. Sounds great, but there are very real pros and cons of net present value. This net present value example underscores the real life applicability of NPV. Real Life Net Present Value Example Luke had to decide whether to take a lump sum payment of his...
read moreTime Value of Money in Financial Decision Making Leads to Greater Wealth
The Concept of Time Value of Money is Important to Financial Decision Making Because … “A bird in the hand is worth two in the bush” This medieval proverb still holds true today. In modern terms, it’s better to have a certain payoff today than an uncertain one in the future. After all, who knows what the future holds? By understanding the importance of time value of money, you can find out how to hack the TVM concept for your own benefit. What is TVM? Time Value of Money Real Life Example What if someone offered you $10,000 today or $10,000 in three years? Of course you’d take the $10,000 today. In fact $10,000 received today is actually more valuable than $10,000 received in three years because: You don’t know whether inflation will damage the purchasing power of the $10,000. You can invest that $10,000 to make more money....
read moreIs There Anywhere to Invest Today? Find Bargains in an Overvalued Market
Where to Invest in an Overvalued Stock Market? The market crashed in 2008, more than 10 years ago and has been rising ever since. This is awesome if you’ve participated in the climb. But, there’s a problem, with assets climbing for 12 years, it’s tough to find decent and well valued investments. Get 5 actionable investment ideas for a frothy overvalued stock market. *This article contains affiliate links to help pay for this website. 5 Places to Invest in an Overvalued Stock Market These 5 investment ideas will round out your portfolio until the overvalued stocks cool off and bargains re-emerge Seeking investments that are fairly valued today is like looking for a needle in a haystack. After a 12+ year bull market, there are slim pickings in this frothy market. It reminds me of 1998, when I was looking for value stocks during the dot com boom. Everything...
read moreAccredited Investor Opportunities
The world of investing is already diverse: all you must do is build a portfolio with a mix of asset classes, and you’re well on your way to meeting your financial goals… right? Maybe not. There are a multitude of new investment opportunities popping up, including many accredited investor opportunities. Find out how to become an accredited investor (or qualified investor) and whether these opportunities might be for you. Going Beyond Passive Investing Many are content with a “lazy,” automated portfolio. However, some investors are seeking a way to go beyond the publicly available stocks and bonds. These investors crave more diversification and are willing to take greater financial risks in pursuit of higher returns. In fact, a week doesn’t go by without a public relations expert pitching the newest fintech investment! *This article contains affiliate links to help pay for this website. If you want to go beyond...
read moreHow to Build Wealth with Money Strategies + Investing Books
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