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Investing 101 Archive

  • If you don't give much consideration to your 401k beyond picking the funds and watching the balance you're not alone. Most Americans surveyed by AARP aren't aware they are paying fees for their retirement funds at all.

    According to Robert Hiltonsmith of Demos it's time to start looking at the fine print on your 401k plan. "On average people are going to lose about 30% of their retirement nest egg to fees," he explains in the attached video. By Demos' calculation that adds up to an average of $155,000 for median income two-earner families.

    Now that he's got your attention, Hiltonsmith has four tips for minimizing those fees in order to maximize the benefits of your 401k retirement plan.

    1) Utilize Your Employer Match

    Most companies make matching contributions to 401k, at least up to a certain level. It's imperative that workers make sure they're getting largest possible participation from their employer. Over the long haul the benefit of maximizing company matching programs will more than offset the impact of hidden fees.

    Read More »from 4 Ways to Minimize 401k Fees to Maximize Your Savings
  • Ron Blue has an investment philosophy you don't hear very often these days. Specifically, the Founder and Managing Director of Kingdom Advisors says the old proverbs found in the Bible hold the keys to today's investment success.

    Blue began reading and studying the bible only after becoming well-versed in the tenets of financial reporting as a Certified Public Accountant. What surprised him was the degree to which doing either effectively came down to the same basic rules. Blue recently came on Breakout to share some of these proverbs and how their meanings apply to investors of any faith.

    1) Establish Written Financial Goals

    "The plans of the diligent lead to profit as surely as haste leads to poverty." -Proverbs 21:5

    Write down your end target then determine your steps towards getting there. A little bit at a time, all of the time, is a wiser plan than taken frantic all-or-nothing shots.

    2) Save and Invest Before You Spend

    "Put your outdoor work in order and get your fields ready; after that, build your house." -Proverbs 24:27

    As Blue puts it, "don't spend in the short-term because you won't have it in the long-term."

    Read More »from What the Bible Can Teach You About Investing Today
  • Technical analysis, or charting, is the art and science of graphing past price movements of an asset in attempt to divine their next moves. In a world of sophisticated financial analysis and correlations between various arcane assets, charting is often dismissed as voodoo. Despite claims to the contrary, it's a dirty truth of Wall Street that everyone analyzes charts.

    Fundamental analysis is much more important for the long-term. Macroeconomics, as we've seen, can make hash of a graph overnight. Charts are dispassionate and visual. They reduce the noise both in and outside of your head.

    Why Use Charts?

    Because sometimes they work; which is much better than most investing metrics.

    Too much trading is dangerous, but paying more commission is a better deal than pointlessly hanging on for dear life when you can see a sell-off coming. Breakout viewers got a heads up last May when the S&P500 broke through it's uptrend, ultimately falling 19%. There were plenty of missteps in between but losses were always, always, limited.

    Your brain will tell you whatever you want to hear in terms of holding on to a losing stock. Prices and graphs don't lie. If trends hold up, you hold or buy on the line. If they break, you sell on any close 1% below support and retreat. That's a plan; an exit strategy for trading. Once you have a way in and a way out you can try most anything you want.

    Read More »from How to Use Technical Analysis


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Breakout’s Investing 101 helps you gain insight on money management and trading. Whether you’re managing your own retirement account, just beginning, or an advanced investor in need of a good refresher, Investing 101 will help you learn, grow, and keep you informed of the basic steps to effectively manage your money. Expect investing tips that focus on trading strategies, asset allocation, and portfolio management.

Investing 101

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