Hi there, welcome to ABCs of Investing – there are lots of short, informative investing article on this site. I’ve taken the liberty of grouping the articles into categories, which are listed on their own pages.? Links to all those pages are provided below.? Enjoy! Investment accounts – 401k, Roth IRA, 529, traditional IRA, TSA. […]

Here is a list of common investment accounts and explanations. 401k plan Roth Ira Reasons For A Roth Conversion From 401K Or Traditional Roth How To Convert To A Roth IRA 529 Educational savings plan How to set up a 529 plan Traditional IRA account TSA – tax sheltered annuity Fixed annuities and variable annuities

Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs Carnival of Financial Planning – Edition #164 – November 5, 2010 Welcome to the November 5, 2010 Edition #164 of the Carnival of Financial Planning. The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and […]

Index funds and ETFs (Exchange Traded Funds) are the best investment products for couch potato investing. Find out all the basics in these articles. What are exchange traded funds? Should I buy ETFs or Index funds? Should I buy ETFs or Index funds? A far more detailed look at this question. Not all index funds […]

Financial planning involves setting goals and proper asset allocation. How to set your financial goals. How to create and investment policy statement Investment policy statement example – active investor Investment policy statement example – passive investor Investment time horizon – Determine your appropriate asset allocation. Investment time horizons for retirees Safe investment withdrawal – the […]

Everything you need to know about asset allocation is right here. What is asset allocation? Reasons for owning different asset classes Retirement asset allocation strategies Asset allocation strategies Portfolio rebalancing Investment diversification

Here are some general investing topics. What is investing? Online discount brokerages Bull and bear stock markets Investment real return MER – management expense ratio Transfer-in-cash Transfer-in-kind What are hedge funds? What are commodity investments? Dollar cost averaging Financial statement analysis Foreign exchange or forex trading What is the difference between small cap and large […]

Here is a list of the posts on this site dealing with economics. These are four common and useful terms to learn. GDP – Gross Domestic Product Inflation Recession CPI – Consumer Price Index

Here are a few mutual fund posts. What are mutual funds? – Basic explanation of mutual funds. Target date retirement funds – These funds change their risk profile as you get older. Balanced mutual funds – Combination of stocks and bonds.

There are an infinite number of investing styles – read about some of the more common ones. Index/passive/couch potato investing Growth investing Value investing Bottoms up investing Top down investing Timing the market Chasing investment returns Technical stock analysis

Taxes are an unfortunate aspect to investing. These articles will help you understand some of the tax issues with investing. What are capital gains and capital losses? How to calculate capital gains and losses Taxable and non-taxable investment accounts Tax brackets and marginal tax rates Prepare taxes by hand or use software

One of the key steps to investing is deciding on your asset allocation.� What is an asset allocation you ask?� It’s the relative amounts of different asset classes in your portfolio which will determine how much risk your portfolio has. Asset classes An asset class is a grouping of similar investments whose prices tend to […]

A tax sheltered annuity (TSA) is a tax-deferred plan for employees of public schools. This means that contributors can allocate a portion of their gross wages each year to the tax-sheltered fund. TSAs or 403(b) plans are open to employees of tax-exempt organizations such as 1-12 public schools, colleges, universities, libraries, charities and churches. The […]

One of the age old debates about investment retirement accounts is whether it is better to have your money in an account where you contribute pre-tax money (ie 401k plan or Traditional Roth) or in post-tax accounts such as a Roth IRA. Unfortunately there is no one right answer so this post will cover some […]

Most of you are familiar with the 401K plan and the traditional IRA, but recent IRS changes have turned the spotlight on its lesser well-known cousin, the Roth IRA.� Recently there have been changes to allow high income earners to convert to a Roth IRA in 2010. Before we figure out whether a Roth conversion […]

Technical analysis trading is when investors attempt to predict future price trends by relying on historic data. They use statistics that reflect investor behavior such as prices, volume, open interest, moving averages and other trading variables to make investment decisions. These data are plotted onto charts. This sort of investing is not suitable for beginning […]

Click here if you are looking for a Canadian review of TurboTax (formerly Quicktax). This is a review of the popular tax preparation software TurboTax which is made by Intuit.� There are a lot of different packages for this software – Free, Deluxe, Premier, Home & Business, Business.� As well, some of those packages comes […]

Tax season is in full swing and as people begin to prepare their taxes some will receive a large tax refund, others will break just about even and still others will be left with a tax bill. Most experts would agree that it is best to break even. If you received a large refund or […]

Preparing your taxes on your own has never been easier. Tax filers have options today that were unavailable just a few short years ago. If you are in a position where do-it-yourself tax preparation is realistic then your first choice will be whether or not you will use tax preparation software such as TurboTax, H&R […]

This guest post is from PT of PT Money: Real Personal Finance for a Life Without Limits! Check out PT’s latest series of interviews about making extra money online using freelance writing, an online store, and more. PT is a pretty interesting guy with a blog that you should subscribe to.� He also has a […]

Low cost passive investing is more in vogue than ever.� With last year’s market meltdown affecting both managed mutual funds as well as their low-cost counterparts index funds and exchange traded funds – many investors are asking why they are paying extra money for managers who manage to lose just as much money as the […]

What Are Hedge Funds?

by ABC editor

Hedge funds are thinly regulated private investment funds for high net worth individuals and institutions. They tend to be extremely quantitative and highly leveraged in their investing approach, coming up with proprietary �black-box� models to determine their trades. Hedge funds became popular in the 1990s when their numbers doubled, but they had a spectacular run […]

Foreign Exchange Trading

by ABC editor

Foreign exchange or forex rates determine what you get when you swap one currency for another. Tourists going abroad need foreign exchange, an import firm has to keep up with currency conversion rates to pay for purchases overseas, and multinationals need to keep tabs on multi-currency operations. Currencies are actively traded in the fast-paced and […]

Private equity is capital infused into a company without going through an issue of publicly traded stocks or bonds. The money comes from well funded investors � be they individual high-net worth investors or venture capital funds – who seek early entry into a promising start-up in need of seed capital or a young firm […]

Financial statements give a snapshot of a company�s operations and its financial health.� A study of the four main statements � the balance sheet, income or earnings statement, the cash flow and statement of shareholder�s equity – reveals significant trends to figure out if a company is worth investing in. For the purpose of this […]

[Two common philosophies of stock investing are “value investing” and “growth investing” – value investing is covered in another post] Growth investing is a strategy by which an investor buys stocks that are forecast to grow at rates exceeding that of its peers or the overall stock market. Growth investors do so by identifying companies […]

This is my review of the awesome book for beginner investers called Investing Made Simple written by Mike Piper who is the author of the investing blog Oblivous Investor. I’ve highlighted both Mike’s blog and book before and I was quite happy to review the book for him. I think it’s a great resource for […]

If you read the business pages or investment in mutual funds you will often hear portfolio managers described as “bottoms up investors” or “top down” in their investment approach.� Here is an explanation of “top down”. The investor using a top down investment approach looks at the big picture. Macro economic variables such as the […]

If you read the business pages or investment in mutual funds you will often hear portfolio managers described as “bottoms up” or “top down investing” in their investment approach.� Here is an explanation of “bottoms up” (and no, it nothing to do with alcohol). In the bottom up investment approach, the details matter. An investor […]

Capital gains taxes In a previous post we discussed how a capital gain occurs when you sell an investment for a profit.� All capital gains are taxable in the year that you sell your investment so you can�t normally �defer� the gain to a future year and you also don�t have to worry about any […]

If you sell an investment such as a stock or mutual fund in a taxable investment account, then you might have to pay capital gains taxes on any profit that you make.� This does not apply to a tax-deferred retirement accounts such as 401(k) plan and Roth IRAs. If you make a profit on the […]

This is a more advanced post concerning buying and selling stocks and etfs.� If you aren’t familiar with the subject then you might want to start with market orders and limit orders. If you ever have need to buy/sell individual stocks or exchange traded funds then you should be familiar with the different types of […]

If you are not familiar with stock indexes then please read this post which explains what they are first. What is a stock index? Stock indexes come in a variety of shapes and sizes.� The most common types of stock indexes are market value-weighted (S&P500) and price-weighted indexes (Dow Jones).� Some determining factors of various […]

Tax-Free Municipal Bonds

by ABC editor

If you are looking for a type of investment that will maintain your capital while getting a tax-exempt income flow, municipal bonds might be a possibility for you. Municipal bonds are debt obligations issued by smaller government entities such as cities or a local school board. Once you purchase a municipal bond, you’re lending money […]

What is Value Investing?

by ABC editor

[Two common philosophies of stock investing are “value investing” and “growth investing” – growth investing is covered in another post] Most investors consider value investing to mean buying cheap or discounted stocks, but there is more to this investing strategy. Value investing deals with the buying of stocks that have been neglected by the market […]

Welcome to the 81st Edition of Carnival of Money Hackers. was kind enough to let ABCs of Investing host this week so enjoy the posts and the pictures. Investing Photo Credit:Bob Merco Zachary Scheidt presents Stage is Set for IPO Rebound posted at ZachStocks. ABC presents REITs (Real Estate Investment Trusts) � Invest In […]

Real Estate Investment Trusts or REITs are a type of investment that invests in real estate (as the name suggests).� These investments trade like stocks and exchange traded funds on stock exchanges but you can also buy mutual funds which invest primarily in REITs.� Typically these investment funds invest in large commercial realty projects such […]

Investment Real Return

by ABC editor

Usually when someone is talking about how well an investment has performed – they are usually talking about the actual percentage increase of the value of that investment over a certain period of time.� For example if an investor bought a mutual fund at the beginning of the year for $100 per unit and sold […]

If you are not familiar with fixed income investments then click here for an introduction to fixed income investments. Fixed income investments are defined as securities that have a regular fixed return or payment associated with them such as bonds. Here are some risks to consider when investing in fixed income investments. Inflation � Because […]

“Blue Chip” Stocks

by ABC editor

Companies that are large with solid earnings increasing over time and long histories are considered to be “blue chip” in nature.� The theory behind investing in such companies is that you will hopefully get regular stock price increases and/or dividend increases but there won’t be much risk.� The term comes from casinos where the blue […]

This topic is little more advanced than usual for this blog so try to learn the main points and don�t worry about all the details.� If you are not familiar with stock indexes then please read this post on stock market indexes first. Market Value-Weighted Index The most common type of index is called market […]

One of the benefits of index funds and exchange traded funds is that they allow you to easily purchase a low cost diversified investment product.� Diversification is a key concept in investing so this is an important factor.� For example if you want to buy a fund that contains only American companies then a S&P500 […]

Dividend stocks are any stocks that pay some form of dividend.� However, most investors refer to companies that have a long history of paying out dividends and increasing those dividends over time as “dividend stocks” – Dividend aristocrats is another term used for these companies. Some examples of dividend stocks are Johnson and Johnson, Proctor […]

Debt reduction is a key part of financial planning because you don’t want to be making those loan payments for the rest of your life.� However, what happens when you have your debts under controls or even…(gasp) completely eliminated?� Then you have to start investing for your retirement. Foreign exchange trading is a risky trading […]

One of the biggest concerns for retirees is the fear of running out of money. How do you know how much of your investments you can withdraw every year without running out of money? How much money can I safely withdraw from my retirement funds? Simple – use the 4% rule. This will give you […]

Stocks trade for a wide variety of prices.� Penny stocks trade for prices less than a dollar, which is what their name suggests.� Some stocks buy and sell for very high prices such as shares of Berkshire Hathaway (BRK-A) which recently sold for $131,500!� Most stocks trade between a couple of dollars and a few […]

Check out my introductory post on investment time horizons. Investment goals such as retirements are long (hopefully) term events. If you are 55 years old and are planning to retire in 5 years then you should have a portion of your investment portfolio set aside which will have a short term horizon and therefore will […]

One of the big sales points for index funds and etfs (exchange traded funds) is that they have low expense ratios (ie they cost less) compared to actively managed funds and therefore will perform better (at least that’s the theory).� This is a very important concept for passive or index investing but it’s important to […]


by ABC editor

One of the investment asset classes that gets a fair bit of press coverage is commodities.� What are commodities you ask?� Basically they are raw materials that are mined, grown and used in construction and manufacturing items like cars.� The definition is any material or produce that is consistent in quality and type.� It doesn’t […]

Transfer In Kind

by ABC editor

If you have your investments with a financial institution and you want to transfer it to another financial institution then you need to ask the new institution to transfer your investments from the old company to the new company.� An example of this is moving from one online brokerage to another online brokerage that has […]