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Why It’s Great To Be An Investor

November 3rd, 2011 No comments

When I first started investing, I realized there were a few pretty cool things that came with it. When you realize what it’s all about, you wonder why everyone doesn’t invest because the benefits are so obvious. Here are some of the cool things:
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4 Ingredients to a Successful Financial Plan

November 1st, 2011 No comments

How can you succeed with your financial plan? Consider these four ingredients below.

For many people, planning their finances can seem complicated, daunting and just plain boring. No one wants to spend too much time on it. It’s like asking: do you want to spend your vacation time on the beach or time in the car or plane getting there? Obviously, you would want to be on the beach. But, traveling to get there is still required nonetheless.

In the same way, your financial goals can be realized more successfully if you spend some time planning them. All of this advice can be summed up with a simple idea: become your own Chief Financial Officer (CFO). As an executive, you will not be expected to know all the details or even know what the answers are, but more importantly, knowing what questions you need to ask. One of the main goals of this site is to help you learn about what you need to ask so that when you do seek professional advice you can be a better executive.
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Weekend Investor: Scoping The Second Derivative

October 29th, 2011 No comments

Remember math in school? OK, I think most people want to forget, but math was a strong subject for me. I’ve forgotten a lot of that math while other key concepts I’ve kept and used over the years. There are fewer math topics more important and memorable than the derivative. My instructors of the day said that it was important because it is used in all sorts of fields. They were right.

And so it goes for investing. It’s helpful here too.
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How Stock/Bond Investments Make Money

October 28th, 2011 No comments

In a previous post, I discussed why cash is not a good investment (due to inflation and and its inconsistency in its ability to generate reliable income). If you use your cash instead to invest in stocks or bonds what is it that you are getting and how does it make money?

First, Your Principal is at Risk

Holding cash in insured savings, checking accounts or in money market funds will give you virtual certainty of keeping your principal safe. So, even if interest rates go up or down at the very least you will still have your principal. When you make the transition to other investments, your principal is no longer safe. You can lose money or make money due to the change in value of the asset.

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Understanding Ex-Dividend Dates

October 26th, 2011 No comments

When you invest to earn dividend income, you will want to know when you get paid. In most cases, companies pay on a set schedule. There is no uniformity either in how the key dates are scheduled or even how often companies pay. U.S. companies typically pay quarterly while non U.S. companies usually pay twice a year or even only once.

Three Key Dividend Dates

There are four key dates to know about as depicted in the picture below. Each of these dates has the following definitions:
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