When it comes to structuring a tax-efficient investment portfolio, we believe it is important to consider “asset location.” That is—which types of investments should be held in which accounts? Conventional wisdom would reason as follows:
Will the European Union ever get it together and decide on a plan to save the Euro? Or will the debt-laden nations (specifically Greece, Spain, Portugal and Italy) abandon their attempts at austerity causing further stress on an already weak banking system?
There are a number of indexes that attempt to measure the performance of the financial markets and serve as a gauge of economic activity. The following are descriptions of several of the most common indexes: (more…)
In a prior article, we discussed the importance of maintaining an emergency fund. We offered our insight into how much is appropriate to keep in cash or savings, as well as emergency fund targets. As a result of that article, we were asked the question: “Where can I invest my emergency fund, such that it earns an interest rate that is higher than 0%?”
One of the most important reasons why investors choose to invest in bonds is for their steady and predictable stream of income through interest payments. Though they are not risk-free (e.g., a bond issuer could default on a payment or even fail to repay the principal), bonds as a whole are considered somewhat less risky than stocks. (more…)