May 11, 2023

FDIC- HOW IT WORKS AND HOW TO MAXIMIZE YOUR COVERAGE

The Federal Deposit Insurance Corporation (FDIC) is a US government agency that provides deposit insurance to banks and thrift institutions. This means that if a bank fails, depositors are insured up to a certain amount, and their money is protected. In this article, we will discuss the importance of FDIC coverage and how to maximize it. The FDIC was established in 1933 in response to the Great Depression, and its main purpose is to maintain public confidence in the banking system. By providing deposit insurance, the FDIC helps prevent bank runs and ensures the stability of the banking system.
May 9, 2023

ARE DIVIDEND REINVESTMENT PROGRAMS RIGHT FOR ME?

Dividend Reinvestment Programs, or DRIPs, are investment vehicles that allow investors to use their dividends to purchase additional shares in a company. This is an attractive option for long-term investors who are looking to increase their holdings without having to make additional purchases with cash. In this essay, we will explore the advantages and disadvantages of DRIPs, how they work, and who can benefit from them. DRIPs allow investors to automatically reinvest their dividends into additional shares of the same company, without incurring any commission fees. This can be particularly beneficial for investors who are just starting out, as they can begin to build a portfolio without having to invest large amounts of money up front. DRIPs also offer a way to compound investment returns over time, as the reinvested dividends generate even more dividends in the future.
May 9, 2023

WHAT DO PICKLEBALL AND INVESTING HAVE IN COMMON

When you think about it, pickleball and investing have a lot in common. Both require strategy, quick thinking, and the ability to adapt to changing circumstances. And, of course, both can be incredibly fun and rewarding if you do them right. Let's start with strategy. In pickleball, you need to think ahead and anticipate your opponent's next move. This means analyzing their playing style, predicting where they'll hit the ball, and positioning yourself accordingly. Similarly, in investing, you need to develop a strategy that aligns with your goals and risk tolerance. This might mean diversifying your portfolio, analyzing market trends, and adjusting your investments as needed.
May 7, 2023

CONVEXITY- A USEFUL TOOL TO ASSESS BOND RISK

With the recent significant rise in interest rates we are getting a lot of inquires about bonds. Many clients utilize bonds as a diverisfyer to stocks. Some clients are interested in the income they provide. Traditionally bonds are less risky than stocks. However, like all investments, fixed income portfolios are subject to various risks, including interest rate risk. Interest rate risk refers to the risk that changes in interest rates will impact the value of the fixed income portfolio. When interest rates rise, the value of existing fixed income securities decreases, as investors can now purchase new securities with higher yields. Conversely, when interest rates fall, the value of existing fixed income securities increases, as investors must pay a premium to obtain higher yields elsewhere.
May 7, 2023

DURATION- A TOOL TO ASSESS INTEREST RATE MOVES ON PORTFOLIO VALUE

Investing in a bond portfolio can be a great way to diversify your investments and generate steady income over time. However, it's important to understand the risks associated with bond investing, and one key metric to measure these risks is duration. Duration is a measure of a bond portfolio's sensitivity to changes in interest rates. In simple terms, it tells you how much the price of the portfolio will change if interest rates go up or down by a certain amount. The longer the duration, the more sensitive the portfolio is to interest rate changes. To calculate duration, you need to know the weighted average time to maturity of all the bonds in the portfolio, as well as the coupon payments and the current yield. There are also online calculators that can help you do this.