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Investing 101 Archive

  • Money, power and politics were some of the earliest reasons for marriage in Western civilization. Today those same reasons are among the leading causes of divorce.

    “Interestingly enough, 60% of divorces are caused by money problems,” says personal finance expert Carol Pepper, author of The Seven Pearls of Financial Wisdom. “That’s the number one cause of divorce; it’s not infidelity, it’s money.”

    And Pepper has seen plenty of it as an investment manager and adviser to families who have over $100 million in assets, which includes a role as portfolio manager with the Rockefeller estate, overseeing $1 billion in assets.

    She explains that keeping track of your finances can be challenging, and when you add another person into the mix of bank accounts, bills, assets and investments, it could become an outright disaster.

    On this Valentine’s Day, our Investing 101 series highlights four steps to successfully merge your money as a couple.

    1. Maximize Your Incomes

    “Once you’re together and you’re in love and you’re thinking like a team, really think about who’s the best person to earn money for the family,” says Pepper.

    Read More »from Merging Your Money as a Couple
  • Since introduced in 1993, exchange traded funds, or ETFs, have changed the way many individuals invest in equities. In prior eras investors would gravitate towards well-known mutual fund managers like Peter Lynch at Fidelity, but today many are putting money into ETFs.

    In this edition of Investing 101 Breakout explains how ETFs differ from mutual funds and how investors can tell which are right for their portfolios.

    ETFs Don't Have Mutual Fund Fees

    It's easy to confuse ETFs with the traditional funds. Kelly Campbell, founder and CEO of Campbell Wealth Management, explains that, while both mutual funds and ETFs are pools of invested money, ETFs aren't actively managed.

    As a result of this "hands off" approach to investing your money, ETFs don't come with the often onerous fees associated with mutual funds. Back in the days of star money managers, a mutual fund could charge multiple percentage points just for the privilege of taking your money. Those days are gone.

    ETFs Still Have Market Risk

    Mutual funds may have fallen out of favor after the hot-shot fund managers failed to protect investor money during the volatility of the last ten years, but that doesn't necessarily make ETFs safer.

    Read More »from Mutual Funds vs. ETFs: Which Is Right for You?
  • Investing 101: A New Way to Envision Your Retirement

    By Zelkadis Elvi

    A recent Stanford University study found that many Americans fail to save enough for retirement. That’s because they don’t “identify with their future selves,” the report says. In order to get more people to think ahead about retirement, Merrill Edge came up with a web-based tool called Face Retirement. This tool ages a digital picture of yourself – giving you an idea of what you’ll look like during your retirement years.

    “We wanted to come up with a unique and a creative way, and a fun way, for people to engage in a difficult topic,” said Alok Prasad, head of Merrill Edge, in the attached video. “Our research found that over 75% of Americans are worried about retirement.”

    The Stanford study found that people contributed more money to their retirement savings plans after seeing their future face. Tests showed “a 30% increase,” said Prasad.

    The process is simple. Using a webcam, users can take a photo of themselves and watch as the site digitally ages their face. “Right after someone tries it, they can see themselves at these different age levels,” said Paul Vienick, managing director at Merrill Edge.

    But the tool goes beyond just snapping a picture and aging your face. It estimates your future cost of living.

    “So when someone is going to be 77 or 87 [years old], whatever year that may be, we’ll tell them what something will cost at that point in time," said Vienick. "Whether it be a gallon of milk, a gallon of gas, the cost of a wedding, the cost of an airline ticket. It’s quite an interesting way to correlate it back to today’s time and what things cost.”

    Read More »from Investing 101: A New Way to Envision Your Retirement

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(54 Stories)

ABOUT INVESTING 101

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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