A Big Pile of Junk

Junk, Fallen Angel, High Yield or whatever else you want to call it, these bonds have been all the rage for many years. For almost a decade now, interest rates have been skimming the bottom of the barrel causing many to reach for better yields. One popular arena has been junk bonds. I myself have bought them in the form of a mutual fund because it’s been one of only a few bond areas returning anything. But a recent story on Investopedia gave me pause about my own holdings. Continue reading “A Big Pile of Junk”

Stockless

Yesterday the Dow hit yet another milestone, 20,000, for the first time. It’s always nice to see record stock levels when they are in positive territory. Since the Dow Jones bottomed out during the Great Recession, the market has been up over 300%. This is an incredible jump in less than a decades time but I saw article that shone light on a problem. A record number of Americans aren’t invested in the stock market at all. Continue reading “Stockless”

Good News for Retirement Savings

I talked about it before, when it comes to saving for retirement, time matters. According to Chase Bank, Baby Boomers began saving for retirement at age 40, Gen X began at age 30 and Millennials began at age 23. This is a big deal. The earlier you start saving, the more time your savings has to multiply. It gives more room for the rule of 70 to work its magic. Continue reading “Good News for Retirement Savings”

The Death of Scottrade

Do you have a company that your fiercely loyal to? A company who might not be the best in the industry but you love them flaws and all? For me that company is Scottrade. Recently the news came out that TD Ameritrade was in the process of purchasing them. Needless to say I was devastated. Is this an overreaction to something that happens everyday? Probably but Scottrade is not something that can’t be easily replaced. Continue reading “The Death of Scottrade”

Is Company Ownership Stupid?

As you probably already know, when you purchase a share of stock you have bought ownership in that company. If you only buy a few shares your ownership percentage will be very small but you will own a piece of that company never the less. I recently ran across an interview of Mark Cuban by Entrepreneur magazine where Cuban stated that you shouldn’t invest at all. Continue reading “Is Company Ownership Stupid?”

How to Deal with Financial Uncertainty

In life we have all sorts of unknowns. It is something we have to deal with on a daily basis whether we want to or not. One of the areas of life where uncertainty is the most unwelcome is our finances. During market downturns you can easily lose tens of thousands of dollars in a few short days. These loses, or even the fear of impending loses, can create a lot of stress and anxiety. So how do we deal with this constant uncertainty? I believe the best way to discuss this topic is from a Biblical perspective. Continue reading “How to Deal with Financial Uncertainty”

Is a Recession Coming Soon?

Short answers is maybe, long answer is it depends on who you ask. Deutsche Bank recently came out and said that the probability of a recession in the next 12 months has risen to 60%. On the other hand the New York federal reserve has come out and stated a recession is 8.1% likely in the next 12 months. The biggest issue right now is all of the contradictory opinions about the economy is causing havoc with peoples emotions. The volatility in the markets right now is a direct result of the uncertainty this news creates. There are many gloomy clouds on the horizon but no one can defiantly tells us what it all means. Continue reading “Is a Recession Coming Soon?”

Small Cents BIG Change

One of the things that commonly comes up when discussing saving and investing is the argument that you don’t have any extra money to save in order to invest. I understand completely that we have a lot of demands on our wallets these days but I want to assure you that even small amounts of money can grow into big amounts over time. Would you believe me if I told you that you could leave your loved ones a nice sized inheritance by saving and investing your pocket change? Don’t believe me, well check this out. Continue reading “Small Cents BIG Change”

Passive vs Active Investments

According to Morningstar the trend is continuing as more and more people are moving their investments to passively managed funds from actively managed funds. In my opinion the reason is more than just lower fees. Humans have emotions, we panic, we get scared and we do dumb things because of it. Going with a passive fund not only lowers your fees but it takes away the risk of your fund manager making a bad decision. Over time it is hard to be perfect with every decision you make. Continue reading “Passive vs Active Investments”