Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 20, 2021
4 Financial Traps to Avoid

4 Financial Traps to Avoid

There will always be traps and myths associated with financial planning, and the more of them we can debunk and avoid over time, the better. Here are four ‘traps’ that readers and investors should keep in mind when making decisions.

1) “Consolidating” Student Loans and/or Credit Card Debt

The notion of “consolidating” student loan debt sounds appealing, as though doing so will somehow save you money. But in reality, it may do no such thing. When you consolidate student loans, it does not necessarily lower your interest rate – it just means all of your federal student loans are all organized in one place. You may still be paying the same – or even a bit higher – of an interest rate. And the interest rate is what matters most.

The action to take is not necessarily consolidation of loans, but a refinancing of them. Refinancing your loans can help you lower your interest rate which means owing less overall over time, and perhaps even lowering your monthly payment as well. In some cases, you can shave several percentage points off the interest over the life of the loan, which can equate to thousands of dollars over even just a few years.

2) Investing Money While You Have (High Interest) Debt

Let’s say for example that you have $10,000 in credit card debt at 11.75% interest, and that you receive a $10,000 bonus at work for all your hard work. You decide that you want to invest $5,000 in the stock market and use $5,000 to pay down your debt. You think you want to save some money for the future while also knocking down your debt load, and you feel good about your decision.

Wrong! In order for that decision to make economic sense, you would need to generate at least 11.75% out of your investment portfolio each year until you paid down your credit card debt. Anything less would mean you’re losing money to interest. Better to take the entire $10,000 and just pay down the debt to zero in one fell swoop.

3) Watching Too Much News

An hour in front of CNBC or Bloomberg news can be a dizzying experience. In the span of that hour, you might hear commentary from bulls, bears, cryptocurrency experts, hedge fund managers, trade hawks, globalists, and all variety of opinions on where the economy and the markets are headed. There is such a thing as too much information, and investors and viewers must remember that networks thrive on sowing a sense of chaos and uncertainty. Optimism doesn’t sell newspapers – fear does. Watching too much TV can mean being susceptible to making a critical investment decision in the heat of the moment or based on what you hear from one single commentary offering his/her point of view. Sometimes it’s better to focus on the big picture, which you rarely get in a 24-hour news cycle.

 

 

4) Buying a Home as an Investment

To be fair, buying a home as an investment is not a ‘trap’ in the purest sense. Homes can be great investments, especially if you live in a thriving market such as a booming city. The financial trap I’m trying to underscore here is the act of simply assuming that when you buy a house, you are making an investment. They are not necessarily one in the same. Buying a house means accepting all sorts of new costs, from a mortgage, to property taxes, to insurance, to real estate transaction fees, to house upkeep. Those costs combined could outpace the appreciation you see in a house, and it’s very possible to lose money. When you buy a house, make sure there is a life component before there is an investment component, and make sure you run all the numbers to see if it makes sense.

Looking for Fresh Investment Ideas? See How Algorithms and A.I. Can Help

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Tickeron’s new financial website is available to beginners, intermediate investors, and even experts and advisors. Explore tickeron.com today.

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.