If you have a complex financial life, or if you are unsure of your ability to recognize a good investment, you should seek the advice of a financial adviser. A financial adviser should look at your whole financial picture taking into account your taxes, insurance and estate plans. For more information on when you should seek an adviser’s help, read this Financial Strategy.
If you have had the unfortunate experience of watching one of your securities investments plummet to worthlessness, you may be eligible for a tax deduction. However, the IRS has a strict definition of "worthless." For more information on what qualifies a stock to be worthless and how a taxpayer can take advantage of a loss of a stock that has a miniscule amount of value, read this C.P.A. Insight.
Exchange traded funds are a relatively new investment vehicle that have been available in the United States since 1993. One of the most notable innovations in the ETF market is the actively managed ETF. For more information on the benefits of investing in an actively managed ETF instead of an equivalent mutual fund, read this Investment Whys.
Despite the relative simplicity in deriving a P/E ratio, its application can be quite complicated. P/E is a measure of relative value. A thorough investor should compare a stock’s P/E against the stock’s peers, and consider the growth potential for the sector. For more information on P/E ratios and how it is calculated, read this Investment Whys.
With technology providing investors easy access to global markets, many consider investing in foreign securities. One of the easiest options for investing in foreign securities is to consider American Depositary Receipts (ADRs). For more information on ADRs, and the advantages and disadvantages of foreign securities, read this Investment Whys.
Is gold a good investment during these current economic times? While it does have some benefits, The Henssler Financial Group generally advises against investing in it, as there are more efficient alternatives. For more information about the pros and cons of investing in gold, and for some alternative investment options, read this Investment Whys.
Real estate is a common investment option for many investors, often done through the purchase of Real Estate Investment Trusts, or REITs. There are several different kinds of REITs, as well as many advantages and disadvantages to purchasing them. For more on the different types of REITs and to learn a little bit about investing in them, read this Investment Whys.
Supply and demand tend to be the deciding factors to stock price fluctuations. However, the driving factor behind many investors’ decisions is conventional wisdom, or certain ideas or explanations that are generally accepted as true by the public. For more information on today’s market versus the idea of conventional wisdom, read this Investment Whys.
We define an investor as someone who invests for the long run–not someone who chases the market through excessive trading and market timing. At Henssler Financial, we follow a strategy called the Ten Year Rule; money needed within 10 years should be invested in fixed-income investments, while money not needed should be invested in growth investments. For more on the Ten Year Rule and how to plan for any kind of market, read this Investment Whys.
Awarding stock options has become a common employment incentive used by start-up companies or companies that are merging or buying other business. While stock options vary, the two most common types are Incentive Stock Options (ISOs) and Nonqualified Stock Options. For more information on your stock options and to discover which one is best for you, read this Investment Whys.
