Hedge funds are sometimes the highest-earning investment vehicles, and sometimes they do that much worse than everything else.
They have a high buy-in, low transparency, and limited liquidity. There are also other advantages and disadvantages worth mentioning. A good hedge fund can provide you with an excellent diversification of your investable assets and give you exposure to the best and brightest money managers in the world.
They take enormous fees out for the work they do, but it may be your best shot at beating the market anyway. Hedge fund managers tend to take larger risks than, let’s say, mutual fund managers, and this can cause them to be hit harder than other investments when things don’t go as planned.
They also may not give you as much liquidity as you’d like. You can only make redemptions at certain intervals, such as once a quarter or once a year, and that may mean you have to sit on your hands while things go south.
Because hedge fund managers have a license to do pretty much whatever they want with a very large sum of money, it can be a very productive venture if the manager is able to navigate the markets well.
In mutual funds and other pooled investments, mangers are confined to the strategies set forth in the prospectus, and this sometimes forces mutual fund managers to sit on their hands while hedge fund managers are really throwing their backs into generating alpha.
A bond is a contract which “binds” the lender to the debtor, where an individual investor is generally the lender and...
ETFs invest in a wide array of securities, and which ones depends on the goal, strategy, or index that the ETF is...
It’s not likely that a cash-balance plan will allow for early withdrawals. Generally speaking, you can’t withdraw money
Generally speaking, the closer you are to age 70, the better. But everyone will need to take all options into account
Medicaid will cover many things, but it is reserved for those without enough assets to get such care on their own or…
A penny Stock is a term for equity shares valued below $5, many of which are not registered with the SEC and trade OTC
Cash flow is the liquid flow of cash and cash equivalents into and out of a business
Earnings momentum is an indicator that is computed by not just looking at the earnings performance and estimations of...
Sources of retirement plan income, such as pensions, annuities, and IRAs, will be associated with a 1099-R filing