Managing Your Liquidity
The risk of investing in bonds depends on the type of bond, the quality and the holding period.
Tracking Stocks as an Investment
A tracking stock is common stock issued by a parent company that tracks the performance of a particular division of the parent company. However, tracking shares don’t always represent ownership interest in the underlying company.
Annuities
Annuities are generally sold as a way to accumulate assets for retirement (with taxes deferred until money is withdrawn), and/or as a convenient method for delivering income during retirement. They generally come highly recommended by sales agents due to the large commissions the agents receive.
Why a Company May Choose to Issue a Tracking Stock
Essentially a tracking stock is nothing more than a stock that the company who issues it HOPES will be viewed by the market as its own company to command its own valuation. Unlike a full spin-off to investors, the company which is being ‘tracked’ is oftentimes controlled by the mother company’s board and senior management, and is 100% owned by the mother unless a portion was sold to the public in an IPO.
Pros & Cons of DRIPS
The best advice that we as investment advisors can offer to new investors is quite simple: SAVE! Over the past several years, many brokerage firms have increased their minimum account size, despite the decline in commission costs, continuing to make smaller transactions cost prohibitive. As a result, DRIP plans have become heavily promoted as viable solutions to new investors entering the stock market.
Growth & Value Defined
Though we at Henssler Financial have always classified our mutual fund recommended list into ‘Growth’ & ‘Value’ categories, and use these terms when talking to our listeners, the use of these terms is just now becoming widespread. The proliferation of these terms in the press is causing confusion, but fear not, we’ll put it into context for you!