Investment Advice

Get sound investment advice, and news reports on a wide range of topics, from investment funds to retirement and everything in between.

Why Marriage Makes Financial Sense

[ad_1] For many people, marriage brings a vast swath of benefits, including financial ones. But if you have a significant other who believes that getting married is more of a financial liability than a benefit, don’t be surprised because that mindset is more common than you’d think. Many people, largely confused by the long-held belief …

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16 Things to Do Before You Die

[ad_1] When Aretha Franklin died intestate—without a legal will—in 2018, she joined a surprisingly long list of famous people, including Prince, who also did the same. By not preparing an estate plan, she made the task of settling her affairs more complicated for her survivors. While your estate may not be as large or complex …

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How the Oil and Gas Industry Works

[ad_1] The oil and gas industry is one of the largest sectors in the world in terms of dollar value, generating an estimated $5 trillion in global revenue as of 2022. Oil is crucial to the global economic framework, impacting everything from transportation to heating & electricity to industrial production & manufacturing. Investors looking to …

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A Brief History of Bear Markets

[ad_1] On March 11, 2020, the Dow Jones Industrial Average (DJIA) entered a bear market for the first time in 11 years, falling from all-time highs—approaching 30,000 a few weeks prior—to under 19,000 a few days later, amid the economic impacts of the COVID-19 pandemic. The S&P 500 and the Nasdaq followed suit shortly after. …

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Why Financial Literacy Is So Important

[ad_1] Today, many consumers have little understanding of finances. In fact, a lack of financial understanding may underscore why many Americans struggle with saving and investing. Every few years, the Financial Industry Regulatory Authority (FINRA) issues a short financial literacy test as part of its National Financial Capability Study. The test measures consumers’ knowledge about …

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5 Key Intel Shareholders (INTC)

[ad_1] Intel Corporation (INTC) was founded in 1968 by Robert Noyce and the father of Moore’s Law, Gordon Moore. Noyce and Moore left Fairchild Semiconductor to launch a new venture, NM Electronics. Several months later, they purchased the rights for the name Integrated Electronics Corporation from a company called Intelco. In 1969, they developed the …

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Timeline of U.S. Stock Market Crashes

[ad_1] When a stock market experiences a crash, it is the effect of economic events spurring investors to act out of fear. These types of financial crises have appeared frequently throughout history. In the United States, stock market crashes were documented as early as the 18th century and since then significant financial downturns have had …

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Decentralized Autonomous Organization (DAO): Definition, Purpose, and Example

[ad_1] What Is a Decentralized Autonomous Organization (DAO)? A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions …

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Know the Sneakiest IRS Scams

[ad_1] The fact is that there are scammers galore out there. They can seem innocent at first, but they’re playing on your emotions from the start. Before long, they’ll try to sucker you into giving up your personal information and money.  They might pose as long-lost relatives or call about pretend problems with your internet …

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CFPB Study Outlines Need for “Buy Now, Pay Later” Rules

[ad_1] The Consumer Financial Protection Bureau (CFPB) is gearing up to place the same type of stringent protections it places on credit card companies on the “Buy Now, Pay Later” (BNPL) industry, following the release of a recent study on the practice. Officials said their findings revealed an exploding industry that not only had few …

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Can Crypto Be Hacked?

[ad_1] Investors worldwide have swarmed on Bitcoin and other cryptocurrencies, lured by the promise of quick riches regardless of the risks. Bitcoin’s success has fueled legions of follow-on projects, imitators, and fans. Thieves, not to be left out, discovered opportunities as well—because where there is a promise of riches, there is an opportunity to steal …

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Today’s Mortgage Rates & Trends

[ad_1] The rates you see here generally won’t compare directly with teaser rates you see advertised online, since those rates are cherry-picked as the most attractive. They may involve paying points in advance, or they may be selected based on a hypothetical borrower with an ultra-high credit score or taking a smaller-than-typical loan given the …

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Compare Today’s Best Mortgage Rates

[ad_1] As of today, September 23, 2022, the benchmark 30-Year Fixed mortgage rate is 6.73%, FHA 30-Year Fixed is 6.68%, Jumbo 30-Year Fixed is 5.77%, and 15-Year Fixed is 6.24%. These rates are not the teaser rates you may see advertised online and based on our methodology should be more representative of what customers could …

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Gross Margin vs. Contribution Margin: What’s the Difference?

[ad_1] Gross Margin vs. Contribution Margin: An Overview Gross margin measures the amount of revenue that remains after subtracting costs directly associated with production. Contribution margin is a measure of the profitability of various individual products based on the variable costs associated with those goods. Key Takeaways Gross margin is the amount of profit left …

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How to Calculate Yield to Maturity of a Zero-Coupon Bond

[ad_1] Yield to maturity (YTM) is an important metric used in bond markets that describes the total rate of return that is expected from a bond once it has made all of its future interest payments and repays the original principal amount. Zero-coupon bonds (z-bonds), however, do not have reoccurring interest payments, which distinguishes YTM …

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Contribution Margin

[ad_1] What Is Contribution Margin? The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm’s costs. The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known …

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Best VIX ETFs for Q4 2022

[ad_1] Volatility surged to the highest levels since 2008 in March 2020, as a result of the coronavirus pandemic and its dramatic impact on the global and U.S. economies. It then moderated throughout most of 2021 but has fluctuated dramatically in recent months amid Russia’s invasion of Ukraine and fears of a recession. Many investors …

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Best Water ETFs for Q4 2022

[ad_1] Water is one of the planet’s most coveted and widely used resources. Like other commodities, such as oil and gold, water assets can add significant diversification to any portfolio. One way to gain exposure to the water industry is through a water exchange-traded fund (ETF). These ETFs invest in companies involved in the treatment …

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Best Telecom ETFs for Q4 2022

[ad_1] Telecom exchange-traded funds (ETFs) are an investment security that provide exposure to companies that sell infrastructure, products, support and services for communications. The telecommunications sector includes mobile phone manufacturers and internet service providers along with companies that provide audio, video, and other services electronically. Telecom ETFs are sector ETFs that provide exposure to some …

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Best U.K. ETFs for Q4 2022

[ad_1] As one of the largest economies in the world, the United Kingdom has long been a major focus of American investors. The nation’s economy contracted sharply in 2020 due to the disruption stemming from the COVID-19 pandemic. But the U.K. economy is beginning to recover as the vaccine rollout reaches more citizens. Investors looking …

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Best Oil and Gas ETFs for Q4 2022

[ad_1] Oil and gas exchange-traded funds (ETFs) offer investors more direct and easier access to the often-volatile energy market than many other alternatives. While there is the potential for significant returns by investing in the oil and gas sector, the risks can be high. Oil futures, for example, tend to be volatile and often require …

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3 Platinum ETFs for Q4 2022

[ad_1] Platinum is regarded as an important precious metal by many investors, though it’s less commonly talked about than gold and silver. Many investors use platinum as either a hedge against inflation or a safe haven in troubling economic times. Platinum is also valuable as an industrial metal, used in the manufacturing of products such …

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Best Precious Metals ETFs for Q4 2022

[ad_1] Precious metals such as gold, silver, and platinum are valued by many investors as a hedge against inflation or a safe haven in times of economic turmoil. They also are valued for their rarity and their use in a broad range of industrial applications. Precious metals exchange-traded funds (ETFs) are a popular way to …

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Best REIT ETFs for Q4 2022

[ad_1] Real estate exchange-traded funds (ETFs) hold baskets of securities in the real estate sector, providing investors with a less expensive way to invest in the industry compared to other options. These funds often focus specifically on real estate investment trusts (REITs), which are securitized portfolios of real estate properties. REITs offer investors income potential as well as the liquidity …

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How Skype Makes Money

[ad_1] You may find it hard to believe, but voice-over-internet-protocol (VoIP) has been around well before the new millennium. VOIP is a technology that allows users to make voice and video calls through the internet. The technology takes a voice signal and converts it into a digital one using traditional phone technology. This signal travels …

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Vanguard vs. Fidelity Investments

[ad_1] Fidelity and Vanguard are two of the largest investment companies in the world. Fidelity boasts 40 million individual investors and $9.9 trillion in assets under management (AUM). Meanwhile, Vanguard has more than 30 million investors and $8.5 trillion in assets under management. Both brokers have solid industry reputations and offer a large selection of …

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Resetting the Standards and Investing Principles for ESG

[ad_1] Welcome to the Green Investor, powered by Investopedia. I’m Caleb Silver, the Editor-in-Chief of Investopedia, and your guide and fellow traveler on our journey into what it means to be a green investor today, and where this investing theme is headed in the future. We’re going to break format this week and get straight …

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Interest Rate Trends for Card, Auto, and Mortgage Loans

[ad_1] Tracking interest rates over time shows us significant volatility over long-enough time periods. Typically, the rates will be lowest on mortgages, highest on credit cards, and somewhere in the middle on auto loans. We can predict only one thing about interest rates with reasonable surety: that rates will change significantly over most 10-year periods. …

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Best Investment Grade Corporate Bond ETFs for Q4 2022

[ad_1] Exchange-traded funds (ETFs) are not reserved solely for equities. There are also bond ETFs that invest exclusively in fixed-income securities. Investors who want to access relatively low-risk corporate bonds can consider investment grade corporate bond ETFs, which buy the high-quality debt of financially strong and stable companies. Examples of the kinds of companies whose …

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Charles Schwab vs. Vanguard

[ad_1] Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or …

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Why Do Companies Print Coupons?

[ad_1] If you’ve ever watched the TV show Extreme Couponing or read about a customer who got $200 worth of groceries for next to nothing, you’ve probably wondered what’s in it for the manufacturers and stores who offer these coupons. Are they actually making money in the process, or are customers getting away with legalized …

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Investopedia Anxiety Index

[ad_1] 108.54 The current reading of the Investopedia Anxiety Index is above neutral, indicating a higher level of anxiety. Markets Today U.S. stock futures are under pressure after the major averages fell sharply in the final hour of a volatile trading session yesterday following the Federal Reserve’s 75-basis point rate hike. The Fed also signaled …

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How and When to Reinvest Your Funds

[ad_1] Certificates of deposit (CDs) are a low-risk way to put some money aside for the short- to medium-term future and earn a modest return in the meantime. This makes them suitable and popular for seniors who have extra savings in retirement, and a common part of inheritance settlements. There are several ways to inherit …

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What They Are and How To Choose

[ad_1] Did you know there are thousands of digital currencies, with more being added every month? Curious new crypto investors need to start by making decisions about how to invest, including how to store their digital assets. Investors will need to evaluate where and how to transact in cryptocurrencies, and whether staking tokens—a way of …

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What Are Consumer Protection Laws?

[ad_1] Consumer protection laws are made to protect consumers from fraudulent business practices, defective products, and dangerous goods and services. They play an important role in a reliable market economy, helping to keep sellers honest, with no threat of unpleasant surprises. Consumer protection laws in the U.S. are comprised of various federal and state laws, …

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Crypto Market Maker Wintermute Hacked for $160M

[ad_1] One of the leading crypto market makers, Wintermute, has lost about $160 million in a hack, becoming the latest crypto firm to suffer a breach. Wintermute’s CEO and founder, Evgeny Gaevoy, revealed in a series of tweets that the firm’s decentralized finance operations were compromised on Sept. 20. A crypto market maker provides liquidity …

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What Is Decentralized Finance (DeFi) and How Does It Work?

[ad_1] What Is Decentralized Finance (DeFi)? Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. In the U.S., the Federal Reserve and Securities and Exchange Commission (SEC) define the rules for centralized financial institutions like banks and brokerages, which consumers rely on to access capital …

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What to Watch for, Fighting Back

[ad_1] It shouldn’t have to be your responsibility to avoid getting scammed out of your 401(k) plan contributions. Unfortunately, there are selfish, entitled, and desperate people in the world whose dysfunctional moral compass tells them that it’s OK to steal others’ money. Here’s what to look out for so you can reduce your chances of …

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What Is APY on a CD?

[ad_1] The annual percentage yield (APY) on a certificate of deposit (CD) is the amount of interest you will earn each year. The APY is normally expressed as a percentage, so you might see a CD advertised as having a 1% APY. In this case, if you have $100 in the CD, after a year, …

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What You Need to Know

[ad_1] Insurance can help defray much of the cost of giving birth, but you may still face a significant bill for hospitalization and other medical services. Even with insurance, the average out-of-pocket cost of giving birth ranges from about $2,700 to $3,200 depending on whether you need a cesarean section, according to a recent Kaiser …

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What Is a Pyramid Scheme? How Does It Work?

[ad_1] A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. The early investors actually get paid those big returns, which leads them to recommend the scheme to others. Investors’ returns are paid out of the new money flowing in. Eventually, no new investors can be …

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Fed Raises Rates by 75 Basis Points at September 2022 Meeting

[ad_1] The Federal Open Market Committee (FOMC) raised the target range for the federal funds rate by 75 basis points (bp), or 0.75 percentage points, at its meeting on Sept. 20-21, 2022. The new target range is 3.00% to 3.25%. The FOMC’s press release stated: “Recent indicators point to modest growth in spending and production. …

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How Green Will Ethereum 2.0 Be?

[ad_1] With Ethereum’s recent overhaul, called the Ethereum Merge, developers are looking to mitigate the excessive energy consumption involved in mining cryptocurrencies. Ethereum 2.0, the new version of Ethereum, promises reduced energy use, faster transactions, and lower gas fee. What are the chances of Ethereum 2.0 actually delivering on its promises? Ethereum 2.0 and the Proof-of-Stake …

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Where Not to Go for Crypto Advice?

[ad_1] Over the last few years, cryptocurrency has become an increasingly popular option for investing. The crypto market is known for its volatility but has captured the attention of a large number of investors looking for new ways to seek profit in their portfolios. But amid such a new and unregulated financial market, investors are …

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