Understanding Stock Allocations and Categorization

I recently introduced you to the importance of asset allocation.  In order to help you determine the right asset allocation, I figured I’d spend a few moments introducing the different types or categories of stocks and the general trademarks that represent each type. The best primer book on this topic is The Sound Mind Investing Handbook by Austin Pryor.  My comments on the book exactly mirror … [Read more...]

Asset Allocation is the Biggest Investment Decision You’ll Ever Make

I get questions. I get questions about the Bible and money, questions about debt, and questions about investing. Did you know that the questions you ask don’t necessarily get you to the solution you need?  If you ask the wrong question, you’ll get the wrong piece of advice. We tend to think the most important investing questions are: How much should I be saving for … [Read more...]

The Ultimate Beginner’s Guide to Index Funds, Mutual Funds, and ETFs

If you were to jump into a Canadian lake in January, I bet you’d feel some sort of shock to your system. If you’ve never done much investing, you’ll feel a similar shock when you start to sort through all the investing options. In fact, beginning investors often use phrases like -  overwhelmed, so many choices, and I don’t know what to do. Don’t expect me to tell you what to do, but I do … [Read more...]

Get a Free Dell Monitor With New OptionsHouse Account

Several months ago, I introduced you to some of the best online discount brokers for investing.  When I wrote that post, the cheapest option was OptionsHouse.  Nothing has changed in the price comparison as it is still the cheapest way to buy and sell stocks.  It is only $3.95 per trade. The big change is that you can now get … Free Dell Monitor with a New OptionsHouse Account … [Read more...]

Mutual Fund Investing Vs. Index Fund Investing

If you asked me for advice to start investing, I’d first have to tell you that I legally cannot give specific investing and accounting advice.  Then I’d tell you that both index funds and mutual funds are better ways to invest than single stocks.  Then you might ask me which is better: mutual funds or index funds*?  Here’s what I’d say … *For clarification in this post, I’ll be discussing … [Read more...]

Stock Speculating Strategies You Should Avoid

Just because you have money in the stock market, that doesn't make you an investor as defined by Benjamin Graham. Graham made an important distinction between an investor and a speculator. In a prior post, we looked at the traits of an actual investor. Basically, an investor looks for safety of principal and an adequate return. A speculator in everybody else. Although speculating isn't … [Read more...]

What it Really Means When You Buy Stock

When considering investing in stocks, there is a lot that we must learn. First we must determine whether we have the time/knowledge to choose our own investments or if we should take a more passive route (hiring a broker, passive index investing, choosing age-related mutual funds, etc). Then we must figure out our investing temperament and risk tolerance,  decide on an length of time to stay … [Read more...]

Nine Traits of an Intelligent Investor

When it comes to building wealth through investments, I can think of few people who are better than Warren Buffet. After all, I don't think you become the third wealthiest person in the world by accident. You need to know what you're doing - and Warren knows how to invest. Have you ever wondered where he learned his craft? If so, one of the people who had the greatest influence on his life was … [Read more...]

Tis’ the Season to Check Out Sound Mind Investing [Limited Time Offer]

Don’t quote me on this (my memory is not what it once was), but I think it was two years ago this month that I signed up for a 30 day free trial at Sound Mind Investing (SMI). I thought I knew about investing, but when I started reading the three years of archived newsletters, I realized my investing knowledge was really superficial.  Among other things, I didn’t have a good grasp on what an … [Read more...]

Reasons Why Young People Should Start Investing Now

If a picture is worth a thousand words, then how much is a chart worth? If you are a younger person and you are trying to decide if you want to start investing money, check out this chart to give yourself the necessary motivation to get started investing. The chart below assumes you get an average annual rate of return of 10%. Speedy Steve starts investing at 20 years old and invests … [Read more...]