A Look at Diversification
Ancient Chinese merchants are said to have developed a unique way to manage their risk. They would divide their shipments among several different vessels. That way, if one ship were to sink or be attacked by pirates, [...]
Traditional vs. Roth IRA
Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 33.2 million U.S. households. And Roth IRAs, created as part of the Taxpayer Relief Act in 1997, are owned by nearly 22.5 million [...]
What Is a Roth 401(k)?
While many people are familiar with the benefits of traditional 401(k) plans, others are not as acquainted with Roth 401(k)s. Since January 1, 2006, employers have been allowed to offer workers access to Roth 401(k) plans.1 And some [...]
Value vs. Growth Investing
Looking at their recent track records doesn’t do much to settle the debate. As you can see from the chart below, during the past 10 years, growth stocks came out on top six times and value investing [...]
The Utility of Sector Investing
There is a growing popularity among individuals to broaden their investment strategy beyond conventional allocations and investment styles. Some see sector investing as a way to seek new opportunities for enhanced portfolio performance.1,2 Sectors are made up [...]
The Investment Risk No One’s Ever Heard Of
Knowledgeable investors are aware that investing in the capital markets presents any number of risks—interest-rate risk, company risk, and market risk. Risk is an inseparable companion to the potential for long-term growth. Some of the investment risks [...]
The Great Debate Continues: Active vs. Passive
Whether it’s sports, music, or politics, life holds any number of “great debates” that never seem to reach a conclusion. In investments, that great debate asks the question, “Active or passive investing: Which is better?” The fascinating [...]