You’re probably overwhelmed with the number of investment choices you have available. Having options is good, but the paradox of choice is a real problem. This problem can be addressed, at least in part, by realizing that most of those options will be poor ones. Remember the Pareto principle – …
Risk tolerance, in investing, is a measurement of an investor’s resilience in the face of adverse events. Over a long enough timeline, an investor will be tested at least once. The riskier the investment, the more often, and more severe, they may be tested. Planning for and understanding how you …
Portfolio volatility measures how much and how often your investments change in value. The change can be positive or negative. By looking at the historic volatility of a portfolio in Excel, an investor can decide how comfortable they are with the potential changes in value. Everybody likes volatility. As long …
Compounding is the 8th Wonder of the world. Compounding is the most powerful force in nature. You have heard all the catchy sayings in regards to compounding. They’re overused, but they’re right. Compounding is very powerful. Until you’re able to see compounding in action, though, its power won’t be completely …
Updated 05/01/2021 Feedback? Let me know on Twitter. Information is pulled from numerous sources; including but not limited to Bankrate.com, Morningstar.com, and GOOGLEFINANCE (in Google Sheets). No guarantee of accuracy is made. Where to invest money to get good returns? Inflation 2.40% Inflation Override 4.80% Investment Type Median Return Return …
Skeptical about what information to include in your stock portfolio spreadsheet? Portfolio headers – video transcript So, what information do you want to capture when you’re creating a stock portfolio spreadsheet in Excel or Sheets? I like to capture the name and symbol, of course, to identify the investment. The …
Interested in the compound interest spreadsheet used in the video? Click here. How do you earn compound interest with stocks? Video summary Technically speaking, stocks do not earn interest. They earn dividends and capital gains. Capital gains can be very volatile. Dividends are less volatile. Ideally, dividends will grow, but …
Interested in the compound interest spreadsheet used in the video? Click here. Does compound interest apply to stocks? Video summary Compounding helps investments grow at an ever-increasing rate. Both assets and liabilities can compound. It can work for or against you. The more frequent the compounding, the greater the return. …
Monthly dividends provide reliable and consistent income. Receiving dividend income monthly is appealing because most expenses are also due monthly. Dividend investors need to know what size of portfolio is necessary to meet their income goals. How much you need to invest to make $100 a month in dividends depends …
“Is it worth buying individual stocks?” If you pick the right individual stocks, they can drastically outperform indexes, mutual funds, and ETFs. However, it’s difficult and time-consuming to pick high-performing individual stocks. It also takes a bit of luck and timing. Mutual funds and ETFs are valid investing options for …