Asset Allocation
Asset allocation is based on a theory that investors can achieve higher total returns in their portfolio by splitting investments by asset classes, rather than individual investments within each asset class. Asset allocation looks at the different types of asset classes in your portfolio. Asset Allocation Strategies Asset allocation strategies, also known as schemes, are created […]
Types of Investment Risk
Most people have at some point in their lives stopped to ask themselves how risky something is. Whether it is skydiving, skiing, and even walking, an individual’s comfort level will determine their next step. Risk tolerance regarding investing is very much the same. Investors will determine how comfortable they are with the idea of potentially […]
Sustainable & Responsible Investing
Sustainable and Responsible Investments (SRIs), also notably referred to as impact investing, is a strategy where investors allocate money directly into companies and causes that have positive contributions and impact to community and society. You may be thinking: don’t most companies in our communities have a positive impact!? Perhaps. Impact investing , also known as […]
Mutual & Exchange Traded Funds
Mutual Funds are one of the most popular and widely used investment products (vehicles) within the United States (U.S.). There are over seven thousand mutual funds circulating worldwide and over six thousand Exchange Traded Funds (ETFs) since their inception in the early 1990’s. In this section, we will learn more about what Mutual Funds and […]
Commodities & Derivatives
Understanding Commodities Most commodities are raw materials, basic resources, agricultural or mining products, such, or grains. Commodities can also be unspecialized mass-produced products such as chemicals and computer memory. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it […]
Bonds
A bond is a type of debt instrument. Debt and bonds are also known as fixed income given their structure where the issuer (borrower or debtor) is required to pay to the investor (lender) the amount borrowed plus interest which is based on the interest rate over a predetermined or fixed amount of time. Think […]
Stocks
Understanding Stocks Stocks represent ownership in a company. An individual who owns stock is also known as a shareholder or stockholder. An individual who buys stock is hoping to participate in the future profits of a company in order to generate wealth through investing. While shareholders are considered part owners of a company, stocks do […]
Top Investors Start Here
Here are some principal investment terms: Investment Objectives are usually based upon three factors: risk tolerance, volatility, and return on your investment. Risk Tolerance is the amount of risk or loss an investor is willing to tolerate. It is measured on a continuum that moves from conservative, to moderate, to aggressive. Volatility is the “up and […]
How Experts Build a Financial Strategy
Financial needs change over time, and as we become more financially stable, we tend to move from one investment strategy to another. We move from protecting to planning and prioritizing, and finish up planning for the future. Defensive Planning is about protecting what you have and what you earn. Most people in this category focus on […]
Financial Risk: More Than a Game of Strategy
Financial risk tolerance is simply a measure of how much of a loss an investor is willing to endure within a portfolio and his or her willingness to accept higher risk in exchange for the possibility of higher returns. Financial risk tolerance looks at how much market risk—stock volatility, stock market swings, economic or political […]