Personal Finance Articles

The municipal bond market has confronted turmoil in recent months. The turmoil, however, is primarily the result of fear, which means it may not be necessary to avoid municipal bonds altogether. Many states are dealing with severe budget shortfalls, raising concerns that they may not be able to meet their obligations to bondholders. One investment [...]

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Tax time is here again. But there are some 2010 rule changes to keep in mind. Following are some of the items: The due date is April 18. Income tax returns for individual calendar-year taxpayers are normally due by April 15, but that date is a holiday in the District of Columbia. You can extend [...]

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The “invest in what you know” school of investing was popularized by legendary mutual fund manager Peter Lynch in his best-selling book One Up on Wall Street. In that book, Lynch wrote about buying the stock of Dunkin’ Donuts because he liked the coffee and Hanes because his wife wore the company’s L’eggs pantyhose. Today, [...]

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The massive tax bill passed by Congress in December brought good news for many Individual Retirement Account (IRA) investors. It resurrected an expired provision that allows special charitable donations of IRA assets. The provision allows taxpayers who are 70½ years or older to contribute a total of $100,000 in IRA assets to one or more [...]

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Steep losses from the market meltdown of 2008 and 2009 have many financial advisors recommending that investors consider alternative investments. But what are these so-called alternatives and how do they fit into a portfolio? Alternatives, in general investing terms, comprise portfolios that hedge their positions, invest in commodities through futures contracts or even trade currencies. [...]

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In today’s volatile market environment, a lot of investors are turning to dividend stocks. They have increased in popularity as the stock market has tumbled, in part because they offer some indication of corporate management’s confidence in the future of the business. However, the stocks that pay the biggest dividends may be outside the United [...]

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Do you have a brokerage account? If so, you’ve probably received a mailing or call about a new tax law that takes effect this year. Let’s hope you didn’t ignore it. Starting in 2011, after you sell a stock, your broker has to provide the Internal Revenue Service (IRS) with the investment’s cost basis. This [...]

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Many economists and investment theorists have attempted to translate their academic ideas into reality by opening investment funds. But is it a good idea to invest in them? Some, such as Dimensional Fund Advisors, have been successful. Others, such as Long-Term Capital Management, which imploded in 1998, have been massive failures. Today, the $800 billion [...]

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When you hear economists talk about risks in today’s environment, inflation is usually bandied about more than deflation – but the latter should not be discounted. Deflation is a decrease in the general price of goods and services. It results in an increase in the real value of money, which allows one to buy more [...]

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For years, the price-to-earnings (P/E) ratio has been the go-to gauge of a stock’s value, but it may be losing its mojo. The P/E ratio compares a company’s current share price to its earnings per share. It is calculated by dividing market value per share by estimated earnings per share. The lower the P/E ratio, [...]

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