Investing Archives - InvestMoneyRight

29Jun 2016 by Jesse Losse No Comments

Market Volatility: How to Prepare Your Portfolio for Market Movements

Investing

With the recent events in the markets I figured this would be the perfect time to talk about market volatility. This is an important concept to understand so you know how to protect your portfolio from volatile market conditions. What is Volatility? First, let me start with explaining what volatility means when discussing individual investments. Volatility is when a investment has a large price fluctuation in a short amount of time in either direction. This is when a stock seems confused on which direction to go, resulting in a lot of movement (up, then down, then back up, then down again). Higher volatility normally correlates to a riskier investment. Safer investments tend to have smaller price fluctuations. Bad news, missed sales, size of the company, and pending lawsuits can all…

20Jun 2016 by Jesse Losse No Comments

How to Make a Million Dollars

Investing, Retirement

Who doesn't want to become a millionaire!? Anyone..? These days it seems like everyone wants to be a millionaire but most people won't do what it takes to actually become one. Unless you have a high paying job or start your own business, being a millionaire might seem like just a dream. Well I'm here to tell you it's not! With the right mind set and dedication it's actually not as hard as you may think to make a million dollars. Now, don't get me wrong, its takes a lot of dedication and patients to make your first million and it won't happen overnight. But with the right plan, anyone can make a million dollars. So, What does it Really take to Make a Million when you Retire? Since most…

01Mar 2016 by Jesse Losse No Comments

How Risky is a Stock?

Investing

When trying to find the right company to invest in it's important to know how risky that company is. Some investors might be looking to take on more risk in attempts to achieve a higher return on their investment, while other investors might just be looking for a safe place to hold their money with little risk of losing it. Here are some simple tips to help determine the risk/volatility of a stock: The Stocks Beta - This is a very simple way to tell how risky a stock is relative to the overall stock market. Simply go to a financial website, like Yahoo Finance, and type in the stocks symbol or name. That's it! The Beta will be listed under the stock price along with other stock info. So what does…

12Feb 2016 by Jesse Losse 1 Comment

Invest in Index Fund | Investing in Index Funds For Retirement

Investing

With the rising popularity of index funds, its no surprise investors are taking advantage of these low cost investment instruments. And with an Index Fund's makeup being closely related to that of a mutual fund, many investors are starting to take notice of the benefits of investing in index funds for retirement. What is an Index Fund? An Index Fund is a passively managed fund that mimics a particular stock market index (a way to measure a section of the stock market). It does this by holding a portfolio of stocks in the same proportion to their weight in the desired market index. Investing in index funds for retirement, instead of mutual funds, is a great option to grow your wealth. Pros of Investing in Index Funds For Retirement Low Cost Tax Benefits Diversified -…

04Feb 2016 by Jesse Losse 3 Comments

Mutual Fund Fees: Are You Paying Too Much?

Investing, Retirement

Are you paying too much for mutual funds? Many people don't know if they are paying too much for mutual funds because they don't know what they're paying to begin with. We can help! Before you buy a mutual fund make sure you know what fees are associated with it. This article will explain how mutual funds operate and how to find out what mutual fund fees you are being charged. It's important to understand these fees because they can lead to major drains on your investment in the long run. Most Common Mutual Fund Fees include: Shareholder Fees Front-end Load (Sales Charge): This is a one-time fee that you pay to buy a mutual fund. The fee ranges from 0% – 8.5%, and the money is used to pay broker or…

25Jan 2016 by Jesse Losse No Comments

Bond: Introduction

Investing

What is a Bond? A bond is a debt instrument issued by a company that needs financial funding from investors. To obtain this funding they issue bonds, which are essentially IOU’s, then use the money for business operations. A bond is a fixed income security – meaning investors get a fixed interest payment at regular intervals (annual, semi-annual, monthly, etc.). When investing in bonds you essentially lend your money to a company that needs it, and in return you receive interest payments and your initial investment back once the bond reaches its maturity date. Lets go over a few important terms before continuing: Par Value – this is the value of the bond, also called face value, and is usually in $1,000 increments, but can be more. This is the dollar…

25Jan 2016 by Jesse Losse 2 Comments

Mutual Fund: Introduction

Investing

A Mutual Fund is a pool of money that is managed by a group of professional money managers. These money managers accept investor’s money, pool it together, and invest it in a portfolio of stocks, bonds, and cash. A mutual fund is an easy way to invest your money and can be started with as little as $25 a month. Low contributions to get started makes it possible for small investors, with little cash to invest, to experience and benefit from being in the market. You can also set up a direct deposit from your bank account to a mutual fund for an easy way to invest your money on a monthly basis automatically. Mutual Funds usually try to perform to a benchmark i.e. a market index. For example, a mutual fund might try…

25Jan 2016 by Jesse Losse No Comments

How to Invest and Buy Stocks Online

Investing

Now that you have a basic understanding of what the market is and how it works, I’ll show you how to invest your money and buy your first investment! To start investing you need an account that allows you to buy/sell different types of investment instruments. Just like putting money in a savings account, you can put money in an investment account that holds your money. The money you put in your investment account can then be used to purchase stocks, bonds, mutual funds, etc. You can open an investment account online through an online brokerage firm. How to Invest with an Online Brokerage Firm There are many different brokerage firms to choose from when deciding to open an investment account. Some of the major online brokerage firms include: Scottrade E*TRADE TD Ameritrade…

25Jan 2016 by Jesse Losse 2 Comments

Market Risk vs. Company Risk

Investing

Are you building your portfolio the right way to reduce your risk exposure? There are two types of risk every investor should be aware of - Market Risk and Company Risk. Each of these risks effects your portfolio in a different way. Considering the volatility of the market, it's important that you reduce all the risk you can. Market Risk Everyone investing in stocks is exposed to market risk (also called systematic risk). This is the risk of being in the market. Situations that affect market risk are earthquakes, terrorist attack, economic conditions, and other events that would affect all industries alike. The only way to lessen your exposure to market risk is by the use of derivatives – a very complex trading strategy. Company Risk This risk is specific only to a…

25Jan 2016 by Jesse Losse No Comments

Risk – Return Investing Concept

Investing

How much money do you want to make while investing your money? Are you trying to keep pace with inflation, or taking on more risk for a bigger return? Your answer to these questions will determine your risk and return preferences. Risk - Return are the underlying factors affecting the market’s returns. It’s important you know how risk and return affect each other when making investment decisions. The Risk - Return Concept is Simple: The More Risk You Take On, The Higher Your Expected Return So, what is risk? Risk is the chance of losing your initial investment while investing. Companies with more risk have a higher chance of losing money compared to companies with lower risk. Here’s the thing, if you want to make more money (higher returns), you have…

Category: Investing