Since their introduction in 1993, exchange-traded funds (ETFs) have exploded in popularity with investors looking for alternatives to mutual funds. Both institutions and individuals could see the benefit of these instruments – a basket of assets designed to track an index – that offered low management fees and higher intraday price visibility. But of course, no investment is perfect, and ETFs have their downsides (low…
Companies that report losses are more difficult to value than those that report consistent profits. Any metric that uses net income is basically nullified as an input when a company reports negative profits. Return on equity (ROE) is one such metric. However, not all companies with negative ROEs are always bad investments.
Reported Return on Equity
ROE = Net income / Shareholders’ equity
For establishing an investing strategy that tempers potential losses in a bear market, the investment community preaches the same thing that the real estate market preaches for buying a house: “location, location, location.”
What Is Diversification?
Diversification is a battle cry for many financial planners, fund managers, and individual investors alike. When the market is booming, it seems almost impossible to sell a…
When you need to buy a new car fast, you can end up accepting an auto loan with a high annual percentage rate (APR) just to close the deal. Paying more for interest on a car loan than what you should be paying can cost you money that you could use to pay off bills or put into your savings. Therefore, it pays to shop for a refinance loan at a lower interest rate.
You may want to consider one of these top auto refinance…
Since most states protect life insurance policies from creditors, most buyer questions come from the confusion created with ownership and beneficiary designations because of tax treatment. This is a rather complicated issue when it comes to life insurance proceeds, because there are two tax issues that raise their head: U.S. ordinary income taxes (for the beneficiary) and federal estate taxes (on the estate tax return of the…
Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, schools and other nonprofit organizations will accept stock as a gift or donation.
Tax Benefits of Donating Stock to Charity
If the stock has increased in value from the time of purchase, the owner can avoid paying the capital gains tax by donating the security to another party. When the security…
(Note: The author of this fundamental analysis is a financial writer and portfolio manager. He and his clients own shares of NFLX.)
Facebook Inc. (FB) and its CEO Mark Zuckerberg had a challenging 2018 mired in negative headlines on user privacy, congressional hearings, and rising cost – it was a year to forget. However, all cannot be forgotten, and now the company will present its fourth-quarter results on January 30 after…
The investing landscape can be extremely volatile and change year after year, but there is a lot to be said for investing in what you really know and understand. Considering the enormous number of products on offer, as well as the nature of the industry, it is not that simple to be simple, but it can certainly be done. First, we will take a look at the potential difficulties of understanding investments, and then we’ll look at…
Sam’s Club is a membership-only retail warehouse club that is a division of Walmart Stores Inc. (NYSE: WMT). The first store opened in Oklahoma in 1983, and as of March 2016, there were 653 clubs across the United States and Puerto Rico. There are three types of Sam’s Club membership programs available to the public: the Sam’s Savings, Sam’s Business and Sam’s Plus.
How a Sam’s Club Credit Card Works
The death benefit of a life insurance policy represents the face amount that will be paid out on a tax-free basis to the policy beneficiary when the insured person dies. Therefore, if you were to buy a policy with a $1 million dollar death benefit, your beneficiary will receive $1 million upon your death.
The case value of the policy represents the portion of savings (or investments, depending on the type of policy that you own)…