John (Jack) Bogle passed away on January 16th at the age 89, and left an incredible legacy behind him. History will remember John Bogle as the pioneer of the index fund, who democratized investing and saved billions of dollars for common investors. He fought against mutual funds as much as he fought for the everyday investor. His humble lifestyle allowed investors to save a … [Read more...] about John Bogle and His Legacy of Index Funds
Investing
What Is Short Selling – The Pros & Cons of Shorting
With the recent stock market decline, many are short selling stocks to cash in on the downturn. Should you join them? Short selling can help normalize returns during market downturns, but your losses could be infinite. Below is how to short a stock, as well as the pros and cons of doing so. What is Short Selling? Short selling is betting that a stock will decline … [Read more...] about What Is Short Selling – The Pros & Cons of Shorting
Compound Interest & Why It is So Powerful
Compound interest can be best summarized with this thought experiment. If you had the option of receiving one of the following for a month, which would you take? $1,000 each day 1 penny that doubles each day $1,000 each day is $30,000 for the month (let's hope you aren't offered this deal in February). But what about that penny? How much could that come out … [Read more...] about Compound Interest & Why It is So Powerful
What’s the Ideal Investment Horizon?
How long should you own stocks? On average, your investment horizon should be longer than it is. Winning feels a lot better than losing, which explains why so many people sell their winning stocks too soon. The American Psychological Association found that investors across all demographics and personality types sell their winning stocks too early. "People want a sense of … [Read more...] about What’s the Ideal Investment Horizon?
How Inflation Eats Away Your Personal Savings Account
Personal savings account rates have been trending up in 2018, with rates getting as high as 2.05%. While that is certainly the highest return we have seen in 5 years, it also doesn't factor inflation. The United States Federal Reserve targets 2% for inflation, meaning that it will eat away nearly 98% of the returns in your personal savings account. Once you include inflation, … [Read more...] about How Inflation Eats Away Your Personal Savings Account