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Table of Contents
Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics

What are the Expenses Associated with the Purchase of ETFs?

There may be fees and commissions involved in the purchase of ETFs, and ongoing expenses that reduce earnings over time. Purchasing an ETF will probably involve paying some fees or commissions to the service or broker through which you acquired the shares, but these days those commissions are fairly minimal. These fees will be the same or less than you might pay for using their services to acquire positions in other securities. ETFs are a relatively cheap way to gain an exposure to a particular sector of the market or to take a position that might otherwise be difficult and expensive to research, calculate, and engineer. Continue reading...

Where can I find information about hedge funds and their performance?

Where can I find information about hedge funds and their performance?

Not all hedge funds are obligated to disclose their holdings, trades, or performance. About half of them are, however, and their performance can be found online through Morningstar and other sources. This information may not be as detailed as you would like, and you may try other means. Since the Dodd-Frank Act in 2010, more information about hedge funds is available to the public. This does not mean that all the information you seek will be readily available, however, and there are many hedge funds that do not make their information public. Continue reading...

How Often Can I Contribute to My 401(k)?

Generally 401(k) contributions will be automatically deducted from payroll. Contributions to a 401(k) account are generally taken out of compensation during payroll, before taxes are withheld. For example, if you receive monthly paychecks, the contributions into your 401(k) occur monthly. Some employers may be more flexible and allow employees to make deposits when it is convenient, or to adjust their contributions at year-end, but larger employers will probably not have time for that, unless it is built into the plan interface in a way that makes it convenient for the payroll department at the sponsoring place of employment. Remember, any contributions must be within the limits allowed by the plan. Excess contributions must be corrected promptly. Continue reading...

What if My Long-Term Care Insurance Doesn’t Pay for My Expenses?

What if My Long-Term Care Insurance Doesn’t Pay for My Expenses?

Most long-term care insurance policies are designed to mitigate the cost of long-term assisted living care, not to cover the entire daily cost. Retirees should plan to absorb some of the cost themselves, assuming that daily supervised care is needed. That being said, if you own a long-term care insurance policy and the insurance company is refusing to pay benefits for the care you need, then you may have a fight ahead of you. Continue reading...

How Long Will It Take Me to Pay Off Debt?

Paying off debt depends on a variety of factors, like the total amount of debt, your payment schedule, the principal amount, and interest rates. There are plenty of financial calculators you can access on the web, which would allow you to calculate your payment schedule. Your financial advisor should also have software available to run these numbers for you, or in the very least, a financial calculator to run the numbers quickly. The 'inputs' you need to complete the calculation are: the size of your debt, your planned payments, and the interest rate you’re paying. Continue reading...

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is a measure of the average change, over time, in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is an important economic indicator, as it’s changes influence the Federal Reserve’s monetary policy decisions and it gives an indication if an economy is experiencing adequate inflation. The most common reading on the CPI is % change from a previous period, with most developed economies generally striving for 2% annualized inflation. Continue reading...

What is a Quote?

Quotes are current pricing information about individual securities on an exchange. A potential investor will refer to a current quote to see what price a security traded at most recently. A quote will also show the bid and ask prices, which indicates the price other buyers are attempting to buy the security for (bid), and the price sellers are trying to sell it for (ask). If you are selling, you're going to get the bid price, and if you're buying, you're going to pay the ask price. The difference between the two is called the spread, and will basically be pocketed by the broker or specialist that handles the transaction. A security with a spread of zero indicates high liquidity and is referred to as a frictionless asset or trade. Continue reading...

What does PIP mean?

What does PIP mean?

A PIP is the standard smallest increment of change or precision at which a currency is quoted and tracked in Forex markets. One ‘PIP’ equals .0001 of the size of a lot of currency being exchanged, in terms of the counter currency. A PIP stands for Percentage in Point and is the integer which appears in the 10,000th place when quoting currency exchange rates. It is actually the same as a Basis Point, used in bond and equity markets, which is 1/100th of 1%. If we were exchanging GBP (British Pounds) for USD (US Dollars), in a Mini-lot of 10,000, one PIP would equal $1. Continue reading...

What is a currency peg?

What is a currency peg?

The currency pairs you are most familiar with, such as EUR/USD or USD/JPY, are floating currencies, meaning that their value changes freely with market forces. Some countries have chosen to peg their currency to another currency, most commonly the USD. The exchange rate between their currency and the peg currency never changes, unless policy makers tweak things slightly. Currencies can also be pegged to commodities or baskets of other currencies. Pegged currencies are not discussed often in the Forex market because their value is tied directly to the value of another, more liquid floating currency, or to a basket of currencies, or to a commodity. Continue reading...