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Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics
What are option strategies?

What are option strategies?

Option strategies are implemented by investment professionals to profit from the price movement of an underlying strategy, and can also be used as a hedge against losses or to preserve profits. Various option strategies have been developed over the years to take advantage of the behavior of the underlying assets. Some of these are designed to be conservative, and others are intended to be aggressive. Sometimes these strategies are known by epic-sounding names such as Iron Butterfly and Iron Condor. Continue reading...

Why Should I Have a 401(k)?

There are many potential benefits to using a 401(k) for retirement savings. You can break down the primary benefits of a 401(k) to 3 things: 1) Tax-Deferred Growth: This is probably the most advantageous aspect of a 401(k). Not only is the money contributed to the account pre-tax, which lowers your current taxable income, but the money also grows without being taxed within the account. The effect produced by the tax-deferred growth is much more powerful than most imagine. Continue reading...

What is the Difference Between Cash-Balance Plans and Other Retirement Plans?

What is the Difference Between Cash-Balance Plans and Other Retirement Plans?

Cash Balance plans are Defined Benefit plans, but are not much like Pensions as you may know them, or other types of retirement plans, for that matter. On one side of the retirement isle you have defined contribution plans, such as 401(k)s and SEPs and so on, where the contributions are certain, or at least ascertainable, while the ending balance or benefit of each employee’s account is unknown, or at least does not have to be (and in most cases isn’t). Continue reading...

What is Enterprise Value?

What is Enterprise Value?

Enterprise Value is the total cost to acquire a company. The Enterprise Value of a company is the amount that would have to be paid for full ownership of it, which would include market capitalization (price per share x shares outstanding) + net debt (all liabilities - cash and equivalents). Market cap alone is technically just shareholders equity, and not capital from debt, so Enterprise Value adds that in for consideration. Enterprise value is the numerator in EV/E (Enterprise Value over EBITDA), a very common valuation ratio. Continue reading...

What is Accelerated Life Insurance?

What is Accelerated Life Insurance?

Life insurance contracts sometimes contain provisions by which the death benefits can be paid out to an insured person while they are still alive. This is called “accelerating” the benefits. Certain terms must be met for the benefits to be accelerated, and different policies have different contract language and exclusions. Sometimes these provisions are attached to a regular contract as a Rider, which might require an additional premium, or might be included by default. Continue reading...

If I Want to Establish a Keogh Plan, Do I Have to Establish One for All Employees of My Business?

Keogh plans have minimum eligibility requirements that will probably include most of your employees, but not necessarily all of them. If an employer established a Keogh Plan, eligible employees must be allowed to start a Keogh Plan account as well. Eligibility requirements include: being over 21 years of age and having worked at least a year as a full-time employee for the employer, where full-time is defined as working over 1,000 hours in a year. Seasonal workers, non-resident alien employees, union employees, and non-working partners or owners in the business can be excluded. Continue reading...

What is a Living Trust?

A living trust describes a trust designed to transfer assets to beneficiaries upon the death of the owner/grantor, which is established during the life of the grantor. They can take several forms, but most common ones are categorized as either revocable or irrevocable. Living trusts have a similar effect to a Last Will and Testament, both being legal documents that stipulate how the decedent would like property to be divided amongst beneficiaries upon the death of the owner or grantor of the trust. Continue reading...

What is the Rectangle Top (Bearish) Pattern?

What is the Rectangle Top (Bearish) Pattern?

The Rectangle Top pattern forms when the price of a security is stuck in a range­bound motion, and it bounces between support and resistance levels. Two horizontal lines are formed (top: 1, 3, 5) and (bottom: 2, 4) as a result. Depending on who gives up first – buyers or sellers – the price can Breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...

What is the Symmetrical Triangle Bottom (Bullish) Pattern?

The Symmetrical Triangle Bottom pattern forms when the price of a pair fails to retest a high or a low and ultimately forms two narrowing trend lines. As the support and resistance levels consolidate, it forms a triangle (1­5). Symmetrical Triangles are characterized by the upper line sloping downward and lower line sloping upward. The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. Continue reading...