Most of us are pretty good consumers. We use coupons, look for deals online, and buy on sale. Somehow, those good habits go out the window when we shop for investments. Avoidable Mistake #1: We buy when prices are high. Most people get into an investment based on its one year return that looks fantastic.…
Last week, we talked about the different ways that mutual fund sellers get paid. There are funds with loads, called A or B shares, that charge up-front or back-end commissions. There are also no-load funds that are sold directly from mutual fund companies or through discount brokers such as Fidelity, Schwab, TD Ameritrade, Vanguard, or E-trade.…
It shouldn’t surprise you that people in the business of investing money like to make money themselves. And that’s fine! As a consumer you should understand how your investments charge you and whether the price is reasonable. Today I’ll discuss two common ways that mutual fund companies make money: Loads and Expense Ratios. Loads…
Last week we talked about the difference between stocks and bonds. Today, we will talk about how we can use mutual funds to buy stocks and bonds. You’ve probably been told that it’s a good idea to have a diversified portfolio. This means that you shouldn’t invest all of your money in one company. …
Hello, loyal readers! Last week, I started a pretend business to explain the difference between stocks and bonds. Kristi’s Ranger Cookie Food Truck is sure to be a smashing success thanks to this recipe: Cream together: 1/2 Cup Butter, 1/2 Cup Sugar, 1/2 Cup Brown Sugar Add: 1 beaten egg and 1/2 Teaspoon vanilla Sift and…
Let’s start with the basics. What’s the difference between a stock and a bond? I will explain this concept by starting a hypothetical company, Kristi’s Ranger Cookie Food Truck. Ask any member of my family, neighbors, cat sitter, or school bus drivers, I make the best Ranger Cookies on the planet. Stay tuned for bonus…
Ladies and gentleman, watch carefully as I perform a magic trick. Before your very eyes, I will unmask for you the confusing and veiled language used in the financial services industry. These words make sense to a very few in who work in this business. This can lead to unsuspecting purchases of financial products that…
You know how sometimes it’s better to hear something from an outside coach or counselor than your own parents or spouse? Maybe that’s true for blogs, too! So, for a fresh perspective and some down to earth advice, check out this column from Jonathan Clements. Financial Beliefs You Might Not Like by Jonathan Clements As a quick…
Budget Method #3 – Write-It-and-Track-It This last system for managing your expenses is the one people mostly associate with making a budget. And probably the reason so few of us do it. But, there is a reason it’s still around: it works! Just like keeping a food journal helps people lose weight by making…
Budget Method #2: Save First System I’ll let you in on a shameful I-should-know-better-because-I’m-a- financial-planner secret of mine. I HATE making a budget and tracking my expenses. So, I don’t. “WHAT?!?! Don’t they make you turn in your meticulous monthly budget with corresponding receipts in CFP Class?” you say. NO! What’s my secret? Well,…
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