Everyone knows that the stock market fluctuates frequently and that it increases and decreases sometimes by large amounts. But why do the stock prices change? What are the factors that cause the changes? It’s important to identify the forces that cause this volatility. Here are some of the key reasons why stock prices fluctuate. The Economy When there are changes in the economy it has a direct impact on the stock market. Whether this is a boom or a depression, you’ll see a change in stock prices the moment that this … [Read more...] about What Affects Stock Price and Makes Prices Move?
Whether you have children or grandchildren that are looking to receive a college education in the future, you’ll be considering the ways in which you can effectively and efficiently put money aside to help them pay for college. There are several ways that you can do this, including utilizing your Roth IRA or setting up a 529 college savings plan. What is a Roth IRA? Before discussing the effectiveness of using a Roth IRA as a means to pay for college, it’s important to first identify exactly what it is. For those that aren’t familiar with … [Read more...] about Can I Use a Roth IRA to Pay for College?
In his book, Predictably Irrational: The Hidden Forces That Shape Our Decisions, author Dan Ariely writes, “Wouldn’t economics make a lot more sense if it were based on how people actually behave, instead of how they should behave?” In the same vein, investors of all backgrounds and net worth levels generally know how they should invest but nevertheless make bad investment decisions like getting deeply involved in penny stocks, gambling on the potential of a new cryptocurrency, trying to “time the market,” or investing much too … [Read more...] about How Your Cognitive Biases Can Hurt Your Investment Returns
If you would like to learn more about personal finance or get a higher rate of return on your investments, then simply reading a book may not be the perfect solution. While books written by experienced authors can be useful, the information eventually becomes outdated, especially in the rapidly-changing world of finance, and there’s no one you can turn to for help if you have questions after you finish reading a chapter. This is part of the reason why Investopedia, the self-proclaimed “largest financial education website in the world”, … [Read more...] about Investopedia Academy Review – Self-Paced, Online Courses About Investing
I am a buy and hold investor. I do not like to sell many of my investments. I’m decades away from retiring, and I’m a long-term investor, to say the least. It takes a lot for me to sell mutual funds that I own. But, I have been known to transfer the assets from one mutual fund or mutual fund company to another one based on certain criteria. There are times that it is best to just sell your mutual funds and let them go. Things change. Investing philosophies and goals change. Those are the reason to sell mutual funds. Four Reasons When … [Read more...] about Top 4 Reasons You Might Want to Sell Mutual Funds You Own
How many mutual funds do you invest in? Do you have several funds spread out between Roth IRAs, or do you invest in several mutual funds through your company’s 401k retirement plan? Do you know which stocks those funds invest in? You may suffer from mutual fund overlap. You may be surprised to learn that many of these mutual funds overlap. There can be a real danger in overlap, and you may not as diversified as you think. What Is Mutual Fund Overlap? When a mutual fund does well, investors pile into the investment. Eventually, you wind … [Read more...] about Do Your Investments Suffer From Mutual Fund Overlap?