Learn the stock market in 7 easy steps. Get spreadsheets & eBook with your free subscription!

HEY! DID YOU KNOW…

 

  • The median age in the U.S. is 36.8
  • The median income in the U.S. is $51,939
  • The average 401k match is $1 for $1 up to 6%

A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:
With just average stock market returns of 10% would have $1,114,479.31 by retirement.

Join 7,200+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market.

IFB45: Back to the Basics Pt 3: Stocks vs Other Investments

other investments

 

Welcome to Investing for Beginners podcasts this is episode 45. Andrew and I are going to continue our conversation about back to basics with stocks and tonight’s topic is going to stock versus other investment options.

So Andrew and I are going to talk a little bit about some crypto maybe a little gold maybe a little real estate we’ll just kind of give a brief overlay of those ideas and then talk about how those could be good or bad investments for you versus stocks so Andrew why don’t you go ahead and take it away, and we’ll just chat away.

  • Peer to peer lending
  • Real Estate
  • Gold and other precious metals
  • Bitcoin and other cryptocurrencies
  • Bonds

 

Andrew: Yeah, I feel like with every episode we do we keep saying we’re going back to the basics so now I want to take another step back and let’s go back to the basics again and let’s talk about even before we jump into stock let’s talk about investing in general. And so once you’ve made a decision that you want to invest money and put it to work making these dollars work for you to make more money and to be able to start this compounding that’s going to create hopefully massive wealth for you in the future. Create future income streams before we do all that you have to take a step back and understand that there’s a lot of different places that you can put your money.

a lot of different ways you can make it work for you some of the mare going to be good and some of them  will do better than others and certain time periods and some of them will be better for a certain type of individual and so on a different type would be different will be better for a different type of individual.

[click to continue…]

What You Should Know About Interest Rates For 2018

This is a guest post from RJ Knoll of WealthMaverick. See his bio below.

When most people think about what drives the economy, they think about common terms like supply and demand.

They think about the health of the stock market and the unemployment rate.

While these are undoubtedly important factors to consider, far too many people don’t understand how much of an influence interest rates play. In fact, nothing impacts the economy the same way these rates do and they’re almost entirely decided by a single group.

What Are Interest Rates?

In simplest terms, an interest rate is how much you’re charged for borrowing money. For example, if you borrow $100 at an annual interest rate of 5%, you’ll need to pay the lender $105 at the end of the year. That’s the price you pay – the interest of $5 – for the benefit of being able to spend money now that you otherwise wouldn’t have had.

interest rates 2018

On the lender’s side, they’re compensated for foregoing the ability to spend that money on something else. Interest also incentivizes them to take the risk involved as there’s no guarantee they’ll get their money back.

How the Fed Affects Interest Rates

Even if you never borrow a single penny in your entire life, interest rates will be one of the most important – if not the most important – economic factors that affects your finances.  [click to continue…]

IFB44: Back to the Basics Pt 2: Share Dilution on Wall Street

share dilution

Welcome to the Investing for Beginners podcast this is episode 44. Andrew and I are going to continue our discussion on back to the basics with the stock market and last week we talked a little bit about stocks and today we’re going to talk some more about stocks.  Because you know that’s our favorite thing to talk about besides that baseball and so without any further ado Andrew ahead something you wanted to say as we got started.

  • What is a stock
  • What are stock buybacks and how they affect us
  • What are share dilutions
  • What happens when we buy or sell a stock

Andrew: yeah so obviously last week I had a big thing about you know how shares kind of work and the whole premise behind the stock market. Behind why Wall Street’s there what the value is and how it provides value for really the whole world and how we can take part in that.

I think the next thing that we should really cover is how that applies to Wall Street today so obviously Wall Street’s very intimidating and it can seem like if you don’t have a double-double MBA and in finance that there’s no way that you can really have a shot at understanding it and making it work for you, and that’s so far from the truth and everything we try to do with this podcast is really to try to alleviate that and especially with this series that we’ve come up with here with going back to the basics.

We’re really hoping when you can go from just the average person who might not know anything and really start to put some of the pieces together and use that momentum and it can really take you in some far places and so it was really exciting to be kind of a part of that so with the whole discussion last week I talked about how company issues shares and how they can use those share you know they can essentially it’s called raise capital you hear this a lot in Silicon Valley and yeah you know on Shark Tank and with private equity it’s really a place for companies to incubate and get a jump start and go from either they’ll go from nothing to something with a great idea.

[click to continue…]

IFB43: Back to the Basics Pt 1: The Anatomy of Stocks and Shares

stocks and shares

Welcome to Investing for Beginners podcast, this is episode 43. Andrew and I are going to be talking about some beginning stuff. As my baseball coach used to say it’s all about the basics and we used to drill it into our heads every single week, but it works it helped us a lot we were a good team, and we won a lot of games, and so it was awesome.

  • Defining what a stock is
  • Talk about the big 3, cash flow statement, balance sheet, and income statement
  • Earnings manipulation

So I think going back to the basics is always a great thing and you can never know enough, and it’s always good to just learn the foundation and kind of build from there.

So without any further ado, I’m going to turn it over to Andrew, and he’s going to chat a little bit about a stock.

Andrew: yeah let’s talk about stocks. I mean if there is a way to change the archive so this would be the first one. And people would just kind of follow a progression that would be awesome and hopefully this is an episode that we can reference in the future and tell people hey if you’re completely beginner and you want to understand how the stock market works and why it works the way it does and what it all means from the most basic perspective.

Hopefully, this episode will cover that so basically you know we talked about this a lot how a stock is part owner of a company. But you know what does that mean exactly what is the stock market at all and then you know why it even they exist is.

[click to continue…]

IFB42: Non U.S. Listeners: Is an International Stock Exchange Your Best Bet?

international stock exchange

 

Welcome to Investing For Beginners podcast, this is episode 42. Andrew and I are going to do something fun tonight; we’re going to answer some reader questions.

  • Correction about how to treat capital gains when selling a stock.
  • What options are there to check the financials of a company before year’s end.
  • Different strategies to utilize when prices fall to help protect your investments.
  • Tips to find the right broker for you.

We’ve gotten some emails in the last week, or so that had some interesting questions. Andrew and I thought we would chat a little bit about those so without any further ado Andrew I’m going to turn it over to you big guy and let you start us off.

Andrew: yeah let’s catch up on some of these huh yeah okay first one person. Alan, he says “hey Andrew in the last episode 39 the question was asked when you buy stocks over time and then you sell which gets sold first, the ones you bought or later ones?

Alan says you and Dave said it didn’t matter from a profit standpoint is correct, but for calculating capital gains tax, it can mean the difference between long-term and short-term capital gains. So if I buy ten shares of stock XYZ a year and a half ago assuming long-term capital gains kicks in after one year and I bought another ten shares three months ago and today I sell ten shares will I pay short-term or long-term capital gains on the sale?

So, Alan, you’re right it does matter as far as capital gains taxes go. I mean like we mentioned in the episode there’s that cut off time of 12 months, and so if you’ve held the stock for less than 12 months, it’s short-term capital gains. Longer than that’s long-term so in essence, if you were to sell the shares that you can hold for as long then yes that would affect how much you get in at the end of the day because you’ll be getting short-term and long-term capital gains.

[click to continue…]