What are General Market ETFs?
General market ETFs seek to capture the movements of the market as a whole by tracking major market indices. General Market ETFs track the performance of major market indices such as the S&P 500 (SPY), the Dow Jones Industrial Average (DJIA), and NASDAQ-100 (QQQQ). Most funds that track indexes do so by purchasing shares of all the publicly traded companies within an index, usually proportionally weighted by the market cap of the company (but there are other popular weighting methods). Continue reading...
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...
What is Form 1099-MISC?
IRS Link to Form — Found Here The 1099-MISC form is filed by the payer, which is the business (whether for-profit or not-for-profit) making the distributions or payments to an individual who is operating in a non-employee capacity as independent contractor. This form is also used to report rental income, royalties, and Indian gaming profits. Independent contractors are often used by businesses for various kinds of labor. These arrangements might be temporary or long-standing, but the business and worker have agreed that the contractor is not an employee, and does not have employee benefits. Continue reading...
What is the Rectangle Bottom (Bearish) Pattern?
The Rectangle Bottom pattern forms when the price of a pair is stuck in a rangebound motion, bouncing between support and resistance levels. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern. 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 downtrend leading into the formation. Continue reading...
What is Stagflation?
Stagflation is the occurrence of both stagnation, which is slowing growth and production levels, and inflation, which is the increase of the average cost of goods. If production costs rise for some reason, such as higher oil prices, it can cause economic growth to slow down and the supply of goods in the market to drop. This is known as stagnation. The weakened supply of goods in the market and the higher production costs of the goods will cause the retail prices of the good in the market to go up. Continue reading...
What is Account Activity?
Account activity is any credit or debit activity in a checking or savings account, or investments, withdrawals, dividends or fees in an investment account. Account activity is the transactional history that will appear in ledger statements from a checking, savings, money market, investment, or other kind of financial account. This usually refers to transactions that were originated by the account owner, such as buying and selling securities or withdrawing and depositing in bank accounts, but could also include activity such as dividends, interest, fees, and other sorts of automated activity generated by the custodial institution. Continue reading...
What Happens If I Withdraw Money From My Pension Plan After I Retire?
Usually such withdrawals will be in the form of income payments, but there may be other options. If the plan administrator allows it, you can make non-recurring (one-time) withdrawals from a pension fund. This is usually not allowed, however. The regular qualified plan distribution rules will apply as far as the IRS is concerned, and they may charge a 10% penalty if the withdrawals are taken before age 59½. After you retire, you’ll typically have two options: a fixed monthly payment for the rest of your life (also known as a Life Annuity), or a lump-sum payment. Continue reading...
What is the CME?
The Chicago Mercantile Exchange, now known as the CME group, is the largest derivatives exchange in the world, and one of the oldest. It has historically served as a major international exchange for commodities futures and options on those futures, along with the Chicago Board of Trade and the New York Mercantile Exchange, which are now part of the CME Group. The CME Group is now comprised of what used to be several futures exchanges: CME, the CBOT, and the NYMEX. Historically these markets traded in traditional commodities and their futures, and Chicago was the most likely location for such an exchange, being at the hub of the Midwest. Continue reading...
What is an OTC Stock?
Over-the-Counter securities transactions are done outside of formal exchanges, and the term could refer to private investments and contracts or transactions in unlisted securities, such as penny stocks. The major exchanges have requirements for being listed, pertaining mainly to the size of the company offering equity shares and the nature of the securities. Resources such as the Over the Counter Bulletin Board and "pink sheets" help to facilitate trades that cannot be performed on the largest exchanges, but there are several caveats to bear in mind. Continue reading...
Should I Trust the Opinions Expressed by Various Financial Analysts?
Studies suggest that it is not wise to put too much faith in any market analyst or commentator – but it may be wise to listen to as many of them as possible. There have been many studies surrounding the predictions of financial analysts who seek to foretell the direction of the economy, particular sectors, or even individual stocks. The studies reveal that it isn’t wise to rely on the forecasts of any one commentator or analyst. Continue reading...