Tax-Efficient Investing Now that we understand how taxes impact investments, let’s look at how investors may benefit from and incorporate tax-efficient investing into their strategies. Why should anyone care? Whether you want to save for retirement or generate income, tax-efficient investing may help you reduce your tax burden while increasing …
Taxes and Investments! So we have discussed the importance of diversification and correlation in terms of their role in investing. Now, we will examine investing from a different perspective: the significance of taxes! Why taxes? Even though taxes should not be the driving force behind an investment strategy, it is …
What are Individual Retirement Accounts? Individual Retirement Accounts (IRAs) come in a variety of shapes and sizes, and it’s essential to know which one best meets your needs in order to be financially secure in your retirement. Unlike savings accounts, IRAs provide long-term savings/investment accounts that individuals with earned income …
What is Time Value of Money? The time value of money is a fundamental financial principle stating that money obtained in the present is more valuable than the same amount of money acquired in the future. This is true because the money you have now can be invested and produce a return, therefore …
What is Diversification? Everyone is familiar with the idiom, “Don’t put all your eggs in one basket,” but what meaning does it hold for investors? This piece of advice suggests that one should not devote all of their efforts and resources to a single endeavor, as they risk losing everything. This brings …
What is a 52-Week High? The 52-week high represents the highest prices at which a security, such as a stock, has traded in the past 52 weeks. It is a metric that investors use to examine the present price of a company and attempt to predict its future movements. If a …
What is Correlation? A statistical measure known as correlation expresses how closely two variables are related linearly. It’s a typical technique for describing straightforward connections without explicitly stating cause and consequence. In other terms, it’s the relationship between the movements of two variables. Correlation is measured on a scale of -1 to 1, where two …
