Mixing Equity and Income in your Stock Portfolio
Low interest rates have been a boon for homeowners, but the picture hasn’t been so rosy for income investors. Yet some people have overlooked one income-producing investment category that may also help with other financial objectives, such as reducing portfolio volatility. What is it? Equity-income investments. Learning the Basics Long-term investors often purchase equities for …
Five Ways to Help Measure Investment Risk
Investors who are concerned about market volatility should examine their investment choices from all angles when constructing a portfolio — evaluating not only return, but risk too. There are a variety of risk measures that may come in handy. Of course, numbers don’t tell the whole story, but they may help you determine whether owning …
Market Volatility and the Stock Market
With all the negative focus on market volatility, it’s easy to forget about the opportunities. Recession fears, corporate scandal, war, a housing crisis, or other significant events can make it difficult for you to remain confident about participating in the many swings of the market, and focusing on long-term opportunities. Keep in mind that “volatility” …
Getting To Know Bonds
Many investors own bonds or debt based investments as a strategy for balancing the short-term market risk historically associated with stocks.1 It’s important to understand the characteristics of bonds when making decisions about how to invest. A bond is an “IOU” for money loaned by an investor to the bond’s issuer. In return for the …
Pursue Tax-Advantaged Income with Municipal Bonds
When it comes to bond yields, sometimes less is more. While municipal bonds, or “munis,” usually have a stated yield several percentage points below those on comparable corporate or government bonds, the interest paid on municipal issues is generally exempt from federal and, in some cases, state and local taxes. For that reason, a municipal …