Personal Finance Articles

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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Taxes could soon take a bigger chunk out of your money – meaning now may be a good time to make the most of tax-advantaged investments in your retirement planning process. The Bush administration tax cuts are scheduled to expire at the end of 2010 – and when they do, the maximum rate on ordinary [...]

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You’ve likely heard the old adage about sticking to high-quality stocks. But what exactly are high-quality stocks? When investment professionals refer to high-quality stocks, they’re referring to those of companies that have proven their ability to deliver strong and steady results over the long term. Following are three ways to spot such companies: High ROE: [...]

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