How Can I Establish a Keogh Plan?
A Keogh plan will primarily need a plan document and a way to invest. A Keogh plan can be established by any self-employed individual of a sole proprietorship, partnership, and Limited Liability Company (LLC). A plan document must be put together by the sponsor, or the standard plan document from a prototype plan at a broker-dealer or trustee institution can be used. It is not necessary to submit the document to the IRS, but if you have any employees, it is required that you use this document and any other printed information necessary to fully explain and disclose their rights in regards to the plan. Continue reading...
What is a Cash-Balance Plan?
Cash balance plans are a type of pension in which the benefit is stated as a future account balance rather than an income stream. A Cash-Balance Plan is very similar to a normal Pension Plan. You do not technically contribute anything to the plan (unless you are an owner-employee), and you don’t have any control over the assets which are managed on your behalf. In a normal pension, the benefit waiting for you in retirement is a monthly income stream, but in a Cash Balance plan, your future benefit is stated as an account balance, which you will be able to take as either a lump sum or an income stream. Continue reading...
How do I Calculate my Expenses?
Keeping track of your expenses is one of the most important (and basic) steps to leading a responsible financial life. It might be tempting to “eyeball” your expenses and somehow get by without a plan, but in almost all cases, such carelessness will spell financial disaster. Budgeting your money for specific categories of expenses and carefully documenting the actual spending is critical. You should add up amounts spent on monthly mortgage and car payments, rent, groceries, clothing, entertainment, utilities, transportation, and other miscellaneous expenses, and try to get as close to possible to a monthly budget. Continue reading...
What is the Broadening Wedge Descending (Bullish) Pattern?
The Broadening Wedge Descending pattern forms when the price of a pair makes lower lows (1, 3, 5) and lower highs (2, 4), forming a downtrend. This pattern may form when large investors spread out their selling over a period of time. When the initial selling occurs, other market participants react to the falling price and jump on the bandwagon to participate. Then the value investors begin to buy, believing the price has fallen too much, which spurs the original large investor to resume buying again as well. Continue reading...
What is the Falling Wedge (Bearish) Pattern?
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows (1, 3, 5) and lower highs (2, 4) creating two down-sloping trend lines that intersect to form a triangle. Unlike Descending Triangle patterns, however, both lines need to have a distinct downward slope, with the top line having a steeper decline. This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
What is Return on Net Assets?
Return on Net Assets is a calculation used to determine how well a company performs, relative to its resources. Return on Net Assets gives investors an idea of how well a company uses its resources to generate profits. Net assets includes not only fixed, tangible assets, but also the net working capital of a business. Working capital is defined as Current Assets minus the Current Liabilities of the business. The net profits for a period are divided by the net assets to arrive at the Return on Net Assets. Continue reading...
What is market breadth?
Market Breadth is a descriptor that is used in several market indicators such as the daily breadth, the A/D Line, the McClellan Oscillator, and Arms Index. Breadth is the relative difference in the amount of advancing stocks and declining stocks. Daily breadth is simply computed by subtracting one from the other, or creating a ratio in which one is divided by the other. Daily breadth is closely related, even interchangeable, with the Advance/Decline ratio. It can also refer to the difference between New Highs and New Lows, or Net New Highs. Continue reading...
What is a Settlement Date?
The length of time after a trade is executed that the securities are due delivered and the payment is due paid varies for different types of transactions, but the date on which this occurs is the settlement date. Most exchange-traded corporate securities in the United States are required to be settled three days after the trade order is entered, which is called T+3. That date is the settlement date, and is the final date on which the transaction must be finalized by both parties involved. Continue reading...
How fast should my portfolio grow?
The assumed rate of return on an investment is an important consideration, especially since assuming a rate of return that is too high might cause the individual to under-invest. You should understand the difference between an assumed rate of return that is optimal and one that is going to give you the highest probability of reaching your goals. In a perfect world, your portfolio would average 15-20% per year, forever, but this is really not feasible. Continue reading...
How to Use Free Portfolio Wizards for Short-Term and Long-Term Investment
The easiest way to start investing is with Tickeron's Portfolio Wizards. There are several ways of using this tool. Firstly, if you know how much money you have, our Wizard can build a diversified portfolio just in a few clicks. Secondly, if you already have a portfolio, our Wizard can verify if your portfolio is well diversified. Finally, if you have a portfolio in a 401(k) plan, we can provide you with the full diversification analysis of your company's plan menu. All you need to do is to follow the prompts, and within seconds, you will get all the answers. Continue reading...