The Importance of Dollar Cost Averaging
Are you wondering how to get into the markets? Almost everyone has heard of it, but what exactly does “dollar cost averaging” mean and why is it important to investing?
Dollar cost averaging is simply defined as purchasing the same dollar amount of an investment on regular intervals, regardless of where the investment is currently priced. Your 401(k) is a good example: you contribute the same amount of money to your retirement plan month in and month out. During times when the market is doing well, you purchase fewer shares; during times when the market is down, you purchase more shares.
Some Perspective on the Stock Market and Volatility
In our experience, people tend to look at the stock market in one of two ways. Most people see the market like this, and they are absolutely correct ………….
Please click on the link below to view the rest of the article:
Happy Independence Day: Quoting our Founding Fathers
Some foundational quotes from the Great Fathers of our nation. Many of the ideas that we espouse, aspire to, attack and fall short in reaching today are already evident at the beginning. Celebrate our freedom and independence this weekend and have a great holiday!
When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth ……
Why do Houses Cost So Much?
This is an article from the Seattle Times discussing one of the reasons why housing prices are so high. To see this article, please click on the link below:
http://seattletimes.nwsource.com/html/businesstechnology/2004181704_eicher14.html
FDIC Insurance up to $2 million
LPL Insured Cash Account Program – FDIC insurance up to $2 million for joint account holders
With the recent financial debacle, you may be asking “Is my “safe” money safe?” Where do you save or invest money for liquidity and security? Many people would reply they use savings accounts, money market accounts and certificate of deposit (CDs) for these purposes. But is the money truly safe?
Investing for Women Seminar
Are you confident in your ability to achieve financial freedom? Do you have a fear of becoming financially destitute? Are you equipped with the knowledge and skills required to ensure financial security over your lifetime?
Oil & Gas Partnerships
Have you ever wondered what they are or whether they are an appropriate investment for you?
An oil and gas partnership is a direct investment in exploration and production for energy resources. These investments have minimum net worth and income thresholds, although do not generally require accredited investors. Investors typically receive monthly cash distributions (these are not guaranteed) that will continue as long as there are productive wells, years into the future.
Financial To Do List: Medicare Part D Open Enrollment
If you are over 65 and enrolled in Medicare, or if your parents (or grandparents) are over 65 and enrolled in Medicare, check on coverage for prescription drugs and make any changes during the Medicare Part D open enrollment period, November 15-December 31, 2007. (NOTE: if you are over 65, enrolled in Medicare, AND have prescription drug coverage through a Medicare Advantage plan OR are receiving prescription drug coverage through an employer sponsored retiree health plan, enrolling in Part D may cancel some of your insurance coverage and generally should NOT be done without consulting your current insurance plan.)
Stock Market Observations: Price to Earnings (P/E) Ratios — Check Your Numbers
It is commonly accepted that the P/E (Price Earnings Ratio) is a key metric in evaluating the not only individual stocks but the valuation of the stock market as a whole.
P/E ratios for the US stock market are generally understood to reflect fair valuation when they range between 14 and 20. Exactly where depends on many factors including interest rates and whether looking at current year, trailing 12-month or forward twelve months.
The Dismal Science — Economics: Black Swans and the Mortgage Crisis fine’
“A single observation can invalidate a general statement derived from millennia of confirmatory sightings of millions of white swans. All you need is a single black [one].
” From “The Black Swan”
By Nassim Taleb (2007)
The mortgage crisis meets the description of a “black swan”. Recently, the Wall Street Journal published a description of how one trader (Mr. John Paulson) was able to profit handsomely from betting on this “black swan”. (January 15, 2008, Trader Made Billions on Subprime). How handsomely? Profits of $15 billion in 2007, nearly equal to Citigroup write-offs reported in their December 31 quarterly earnings announcement.