Investing is all about risk versus reward. And for passive index investors, this often comes down to asset allocation. By tweaking your exposure between equity, fixed income and alternative asset classes, you can trade in some potential upside for reduced volatility. But risk management doesn't have to end there! So in this article, I want to take a closer look at so-called … [Read more...]

There is risk with anything in life. When we get into our car to drive to work, there is a risk of an accident. When we play sports, we risk getting hurt. And when we invest, we risk losing money. Because there is risk involved, we have to understand what our risk tolerance is before we decide to do anything. Talking specifically about investing, it is critical that you … [Read more...]

If you started a company you would expect to invest a certain amount today, earn revenue every year, pay for expenses and then pocket the profits, right? Well, investing in stocks is exactly the same concept. When you buy a stock, you buy a small part of a really large business. The business spends money to make money and hopefully turns a profit by the end of the year. Part … [Read more...]

With investing, you are always looking towards the future, not the present. It is imperative that you take into consideration this when putting money away. One needs to know how long they can go without their investment before needing access to those funds. One also needs to be aware of how comfortable they are with risk. For some, they don’t mind higher risk investments, but … [Read more...]

So you want to know how to become a stock market millionaire? It’s much easier than you think. Let me rephrase that – it takes a lot less work to become a stock market millionaire than you think. In fact, the most work you do is at the beginning of the process. Once you have your foundation laid, you can pretty much put things on auto-pilot. How great is that? In fact, if … [Read more...]