Stocks vs. bonds: What’s the difference?
If you’re a newbie investor, you may have no idea what you’re doing when it comes to investing in the stock market. If so, don’t feel bad - you’re not alone. According to Gallup, in 2019, only a little over half of all Americans were invested in the stock market. But this is a huge mistake.
If you want to build wealth, especially long-term wealth, investing in the stock market is a necessity.
But why? Couldn’t you just invest in real estate, or precious metals like silver and gold, or even a new-fangled investment like cryptocurrency to reach your financial goals? While you could, you’d be missing out on one of the greatest (if not the best) wealth creators of all time.
What are dividends, and how do they work?
If you’re a stockholder, you’ve likely felt the rush of adrenaline as you watch the value of your portfolio surge.
But the market doesn’t always go up. Sometimes it goes up and then spikes down, and other times it’s like riding a violently rocky ship, crashing through the waves. If the rocky waters scare you, you may decide that focusing on dividends, rather than capital gains, as a source of return may make more sense for you.
But what exactly are dividends, and how does this source of income work?
Algorithms seem to be in control of everything these days, from the ads we see on Facebook, the shows we watch on Netflix, to what we find when we search on Google.
But what if there were an algorithm that could help you invest smarter? Something that could maximize returns and minimize risk, while possessing smart features such as automatic rebalancing and tax-loss harvesting?
Especially for new investors, wouldn’t it make sense to give this a try?
Robo advisors are still a relatively new product, and yet every year they seem to grow in popularity. One such advisor, called Wealthfront, is one of the largest automatic investment and financial planning services out there.
It’s also one of the most decorated, winning the “Best Robo Advisor of 2019” award, and the “Best Robo Advisor, December 2019” award.
But robo advisors are a dime a dozen these days. Why should you Wealthfront over another company like Betterment?