Investing

Can I Expect My Average Stock Market Return to Be 8%?

No. Sorry to burst your bubble, but anyone who guarantees that your average stock market return will be 8% is lying to you. Even most of the experts touting that figure are merely repeating the claim made by other experts. Except that it’s not the whole story. The Average Stock Market Return Depends on the Period A few years ago, a magazine (probably Money) demonstrated that you can…
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5 Safe Places to Park Your Money During a Downturn

With the constant fluctuation of economic indicators, often conflicting advice of leading investment gurus, and the legal battles of Wall Street, even the savviest investors are looking hard at their portfolios and re-assessing risk. Consumer indicators are shaky, unemployment (though stabilizing) is at historic highs. But smart investors still have options, and it usually makes a lot more sense to invest your cash wisely rather than hiding it…
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How to Diversify and Rebalance Your Investment Portfolio

Most people are aware of the importance of diversifying their portfolios. What they aren’t clear on is how to do that, and then how to proceed once that’s done. It’s not enough just to choose the right balance of investments. You also need to rebalance them once a year to ensure that your investments are on track with your goals. How to Diversify the Portfolio The first step…
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Double Your Expenses and Gain Financial Independence

Today’s guest post is by Bradd, who’s come up with an ingenious way to save a lot of money. Like many people, I’ve been trying over the past year to cut unnecessary expenses as much as possible.  Switching off lights when they’re not needed.  Replacing incandescent lights with compact fluorescents (bought on sale 2 for the price of 1).  And cooking on the coalstove or in the fireplace,…
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Should You Invest in Gold?

If you listen to news radio for any length of time, you’ll hear several commercials touting gold as the current best possible investment. As a guaranteed way to protect your money and the safest investment ever. So should you invest in gold? The simple answer is yes, but not the way these people are suggesting. Gold’s Place in Your Portfolio If you have a well-rounded portfolio, then gold…
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Pros and Cons of Liquid Emergency Funds vs. CD Ladders

My husband and I have been debating what to do with our emergency fund. Should we keep it all liquid in an online savings account currently earning about 1.22% interest or put some it in a CD ladder? There are pros and cons of both options, so really it comes down the size of your fund and how liquid you need it to be. Fully Liquid Emergency Fund Right…
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