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What is Tax Loss Harvesting?
This strategy is known as tax-loss harvesting and it’s a common technique used by wealthy investors to reduce their tax exposure.
9 FAQs About Paying Taxes on Investment Income
Income taxes are complicated enough with a couple full-time jobs, some children, and a mortgage without investments adding a whole new layer of complexity. The good news is that taxes on investment income is rather straightforward with the exception of a few important caveats. As investment income grows over time, it’s important to understand these […]
Calls and Puts: The Basics of Trading Options
When most people think about investing, they think about trading stocks, but that’s not necessarily the only (or best) choice for those looking to generate income from an investment portfolio. The trouble with regular stock trading is that you need a significant amount of money upfront to get started, and, in addition to choosing the […]
The Evolved Investor: Why Behavioral Finance Matters
Few things make us as emotional as the prospect of losing money. Wouldn’t investing be easier if you were a robot? Imagine the market crashes and yet, there you are, cool as a cucumber. But unfortunately, behavioral finance research proves that’s not how it works. As humans, we are hardwired to avoid pain and pursue […]
What Are the Components of Asset Allocation?
It’s easy to see that many financial assets are highly correlated — especially large assets. If there is a new sign of an economic slowdown, investors expect the entire S&P 500 index to move lower in response. Similarly, if interest rates rise, investors expected all fixed income investments to fall. The individual stock or bond […]
Emotions are an investor’s worst enemy
We are hardwired to seek out predators and react to warning signals. While this innate behavior may have helped keep our ancestors alive, it also makes it almost impossible to make good investment decisions. Few things make us as emotional as the prospect of losing money. That’s why investing is a continual struggle between logic and […]
The Process of the Tender Offer
The stock market is a place where buyers and sellers congregate to trade. Usually, when you sell shares, you can just click sell and the broker will match a buyer on the other side and vice versa when you buy shares. However, there may be a special occasion where a buyer will contact you directly […]
What are House Margin Requirements?
When buying shares of a stock, you may occasionally receive an alert that reads something like this: “You are attempting to purchase a security that may be held to a higher house margin requirement than most securities. If you have a Margin Account, this will be reflected in your Buying Power. Please Place Order to […]
Should You Sell Your Company Stock?
Many people hold an oversized chunk of their portfolios in company stock. While it may be performing well, there is a large body of research that has shown that holding a diversified portfolio of stocks outperforms concentrated stock holdings. You may be unwittingly giving up potential returns that could be compounding over time – potentially […]
How to Find Stocks with High Option Premiums
Stock options provide traders and investors with a lot of flexibility when leveraging returns or generating income. While there are many different strategies, success often boils down to a consistent, risk-managed approach. Option sellers must consider the balance between high volatility and stock ownership to create a portfolio that meets their income needs. Let’s look […]