You will hear about different types of investments, things like individual stocks or bonds, mutual funds, exchange traded funds, REITs, and even limited partnerships. They are all a slightly different, so it makes sense to have a little understanding of what these are and how they work. Let’s start at the beginning. What’s an individual…
Read MoreLet’s think about stocks and bonds in terms of a relationship. Stocks are like your boyfriend/girlfriend or spouse. You are connected with them. Their success is your success. If they get a promotion, you celebrate and reap the rewards. If they come home and tell you they’ve been fired, that has real repercussions for you.…
Read MoreWhat are better, stocks or bonds? It’s kind of like asking, “What’s better, chocolate or vanilla ice cream?” Both are great for different reasons. First, why stocks? Well, stocks are ownership. This means if the company sells a lot of stuff, expands into different countries, and makes a lot of money, you get to go…
Read MoreWhat’s a bond? In the last lesson, you learned about stocks, which is ownership in a company. What’s a bond then? Well, it’s not ownership. Instead, it’s an IOU. Imagine you have a friend who needs to borrow $1,000 from you. If you lend her the money, she gets the cash and you get what?…
Read MoreToday’s lesson is capitalism 101. As an investor, my guess is a good deal of your portfolio will be in stocks and bonds. These are the two primary types of investments for most investors. Knowing the differences is critical in your journey to being truly money smart. You may already have a good grasp of…
Read MoreInvesting is good. Well, yes, but why is investing good? Uh, because you make money? Yes, that’s true, and how do you make money as an investor? As an investor, you invest and this investing makes investment money. It’s common knowledge. I’ve asked a lot of people over the years how an investment can make…
Read MoreIs investing like gambling in Vegas? I get this question a lot, and I can understand why. From an outsider’s perspective, someone not in the financial or investment industry, I can only imagine how ridiculous it must look. I remember watching the movie “Trading Places” when I was a kid. It’s the film where Eddie…
Read MoreWhat’s Inflation? When I was a kid, I had to walk to school in three feet of snow, in June, uphill both ways. Okay, so maybe Gramps is exaggerating just a bit, but when he complains about paying $15 for a movie or $10 for a hamburger because when he was growing up “movies were…
Read MoreGet Organized by Starting With a Game Plan Here’s the thing. I hate paperwork. I hate organizing stuff. Which makes me the perfect person to be teaching this lesson. Why? If you’re like me, the last thing you want is some peppy “I just love and live to organize everything” guy. I can’t relate to…
Read MoreAre you an employee or an independent contractor? If you work for somebody, there’s a good chance you are either an employee or an independent contractor. Is there a difference and does it matter? Yes and yes. Most people with a job are an employee. This means you show up at a particular time, do…
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