What's important to know about real estate investments?
Real estate can be purchased in a form you can see, touch, and pay maintenance costs on, or it can be purchased indirectly through the use of REITs and other securities tied to the real estate industry. Real estate investments fall into a wide spectrum of subsets. You can invest in residential property, commercial property, development projects, raw land, etc. Within the residential sphere are multi-family residential complexes, rental houses, foreclosure flips, and vacation rentals with property management. Continue reading...
What is the FTSE 100?
The FTSE 100 Index - also known as the Financial Times Stock Exchange or the “Footsie” - tracks the performance of the largest 100 stocks by market capitalization traded on the London Stock Exchange. Since many of these companies are multinationals, however, the FTSE 100 does not provide the best gauge for how the UK economy is performing. The FTSE 225 is a better barometer for the UK. The FTSE 100, however, much like the S&P 500 provides a good general gauge for how stocks are performing globally. Continue reading...
What is Income Property?
An income property is also called an investment property, which is a piece of developed commercial or residential real estate that is used by a third party tenant who makes rental or lease payments for the use of it. Income property can be a good source of income for an individual or business. It can include single- or multi-family residential or commercial properties. Sometimes people co-own income properties together, and receive a proportionate share of the proceeds according to the amount of the start-up capital they paid in. Continue reading...
What is a Life Annuity?
Annuities are primarily designed to pay a substantially similar sum at regular intervals until the annuitant dies. Life insurance companies write these contracts since they are designed as a kind of longevity insurance. A lifetime income annuity, sometimes called a life annuity, is a stream of guaranteed payments for the duration of the annuitant’s life, based on the sum used to purchase the lifetime income and the age of the annuitant at the time of purchase. Life annuities can also be joint-life, meaning the contract will pay an amount to either of two people as long as one is alive. Continue reading...
What is a Satoshi Cycle?
This term was coined quite recently, describing the relationship between bitcoin prices and Google searches for bitcoin. Chris Burniske, a writer focused on bitcoin since his time as an analyst at ARK Invest, coined the term Satoshi Cycle in August of 2017 to describe the strong correlation between Google searches for “Bitcoin” and a subsequent price jump for the coin. The cycle he refers to is one of consumer curiosity, interest, and acceptance which drives the price up more and more. Continue reading...
What is defined as a market correction?
Sometimes a stock or index will reflect prices that have become inflated or overvalued in the short-term as a result of bullish conditions. In some cases, due to shift in sentiment or a negative news story in the headlines, stocks may retreat suddenly and without notice. A market correction is a sharp, sudden decline in stock prices, where they fall in value by around 10% - 20% over a short period, usually no longer than 6 months. Corrections are frequent occurrences (typically an average of once a year) and are a normal and healthy part of equity investing. Continue reading...
What is Assessed Value?
Assessed value is used to determine the property taxes due on real estate. Assessed value is normally lower than the appraised value of a residential property, because it is not looking as much at the value of the home, but rather the value of the property, for property tax assessment. While the assessed value does have to do with the market value of real estate, most calculations only use average home prices the area, found in local real estate listings, as part of the valuation. The “ask” prices are going to be higher than the prices at which they’ll sell. Continue reading...
If I Leave My Job, Will I Still Get a Pension?
You may not be vested in a pension if you lave too early, or you may have to accept a lower payout. This depends on how many years you worked for your employer, and other factors which are described in your pension plan document. In some cases, the employer can specify a minimum number of years you have to work for the company in order to receive a Pension. Otherwise, the amount you receive will be vested in portions over a few years, until you will be able to leave your job and keep 100% of the accrued Pension benefits. Continue reading...
What is a market-maker spread?
The difference between the Bid and Ask prices on a stock or other security are known as the Spread. Designated market makers are traders whose job it is to make a market for securities, by offering to buy or sell shares, and thus creating liquidity, often at the same time. Their money is made on the spread. In highly liquid markets, the spread will shrink. So if everyone is buying and selling the same stock one day, there may be virtually no spread between the Bid and the Ask price, and this is seen as efficient. Continue reading...
Should I Listen to Commentators on Financial News Programs?
It’s easy to become drawn in by the financial media, but it’s important not to let them do your thinking for you. Commentators on the most reputable financial channels will always be sharp-looking, smooth-talking, and quoting a barrage of statistics that makes it seem like you didn’t know anything before you tuned in. Is this an indication of being camera-friendly? Without a doubt. Is it an indication of sound financial advice? Absolutely not. Continue reading...