The Biggest Rip-Off Fees of All
Comments OffA few days ago, I was reading through the commission schedule of a major East Coast bank and was shocked to find that customers were charged $25 per position, up to ten stocks for a maximum of $250, for “safe keeping” fees on the stocks in their account. Now that we are in an age [...]
Junk Bonds – The Sexiest Investment
Comments OffA Short & Simple Lesson in the Danger and Allure of Junk Bonds You know you shouldn’t. Your CPA wouldn’t approve. Your wife would be furious if she found out. The guilt would consume you. Still, you can’t help casting a lustful glance at junk bonds with their 10-12% coupons. Just remember flashy investments usually [...]
ting Non-Cash Producing Assets
Comments OffOn November 25th, The Wall Street Journal reported that Great Britain was refining the rules for its personal retirement savings accounts to include collectibles such as fine wine, vacation homes, and art. The new guidelines, set to take effect on April 6th, 2006, raise interesting questions about investing in non-traditional asset classes regardless of your [...]
The Five Components of an Investors Required Rate of Return
Comments OffIn financial theory, the rate of return at which an investment trades is the sum of five different components. They are: 1. The Real Risk-Free Interest Rate This is the rate to which all other investments are compared. It is the rate of return an investor can earn without any risk in a world with [...]
