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Are Stock Markets Efficient or Not?

Are Stock Markets Efficient or Not?

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

Is the Stock Market Efficient or Not? Investing Question Answered Moneycone.com asked, “Are markets efficient or not?” After spending a few minutes thinking about how I would tackle this widely researched topic, I decided to do what any researcher would do, I went to google and typed in, “Are markets efficient or not?” 300 million responses later I am no less daunted. This question is one of the most widely debated investing questions. What is the Efficient Market Hypothesis? The efficient market hypothesis was created by Noble prize winner, Eugene Fama. According to Morningstar.com the efficient market hypothesis is:...

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Should I Invest in an Annuity? Simple Answers to All Your Annuity Questions

Should I Invest in an Annuity? Simple Answers to All Your Annuity Questions

By in Advanced Investing, Insurance, Money Management, Reader Question, Retirement | 0 comments

Understand the Annuity Product-In Plain Language Annie Logue of the Root of All, Chicago on the Cheap, and author of several Money and Investing Dummies books about asks; “When are annuity investment products a good idea?” Annuities are a hot button financial offering because they are a product that usually charges you high fees and nets the seller a high commission. Thus, they are frequently (inappropriately) promoted to individuals for the purpose of giving the seller a fat commission. This article delves into the nuts and bolts of the annuity product, when and when not to buy an annuity, and how not to...

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Should I Pay Off My Mortgage or Invest in the Stock Market?

Should I Pay Off My Mortgage or Invest in the Stock Market?

By in Debt, Investing, Reader Question, Real Estate | 24 comments

Paying Off Mortgage vs. Investing – Which is Better? A reader asked, “Am I better off making extra payments on my mortgage at 2.9% or investing the money in the stock market?”  Should I Pay Off My Mortgage or Invest in the Markets? This question is a favorite and a one I’ve pondered many times. Actually, I’m adding $250 to my mortgage payment every month, to get the mortgage paid off by the time I reach retirement.  Whether to pay off your mortgage or not, isn’t an easy question.  There are financial and psychological aspects when considering whether to...

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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 | 14 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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How to Invest Internationally Guide

How to Invest Internationally Guide

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

How Much Should I Invest Internationally?-Part 2 Please check out: International Stock Investing Guidelines-Part 1 In responding to Brian of Luke 1428 Website’s question yesterday, “What percentage of my stock investments, if any, should I allocate towards international stocks and emerging markets (the latter of which seems to have more volatility)?”, you learned the difference between developed and emerging international markets. Since the U.S. is only one third of the world markets, and in order to participate in world economic growth, it’s important to invest internationally. Another reason to invest internationally is that international markets don’t move in lock step with...

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International Stock Investing Guidelines-Part 1

International Stock Investing Guidelines-Part 1

By in Investing, Mutual Funds, Reader Question | 1 comment

How Much of My Portfolio Should I Invest Internationally?-Part 1   Brian, of the Luke1428 website asks, “What percentage of my stock investments, if any, should I allocate towards international stocks and emerging markets (the latter of which seems to have more volatility)?” Brian asks an important investing question. There’s lots of discussion about the importance of diversification. Yet, ‘How much of my portfolio should I invest internationally?’ isn’t an easy question to answer. All but the newest investors know about diversifying within your own country. And most of us understand that it’s important to diversify internationally. But how...

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