Tuesday, June 23, 2015

Invest Wisely. Save for Retirement. Tips to Build Up Savings

In finance, a portfolio is a collection of investments held by an investment company, hedge fund, financial institution or individual.


There are many types of portfolios including the market portfolio and the zero-investment portfolio. A portfolio's asset allocation may be managed utilizing any of the following investment approaches and principles: equal weighting, capitalization-weighting, price-weighting, risk parity, the capital asset pricing model, arbitrage pricing theory, the Jensen Index, the Treynor ratio, the Sharpe diagonal (or index) model, the value at risk model, modern portfolio theory and others.
I'll tell you why I like the cigarette business. … It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty. - Warren Buffett
There are several methods for calculating portfolio returns and performance. One traditional method is using quarterly or monthly money-weighted returns, however the true time-weighted method is a method preferred by many investors in financial markets. There are also several models for measuring the performance attribution of a portfolio's returns when compared to an index or benchmark, partly viewed as investment strategy. On freelancing websites Portfolio is considered as the past work which you had done or past shares which you have in any company.

Investing for retirement? There are many options, and here are the top three options:

Retirement accounts that is offered by your employer, such as a 401(k) or 403(b) plan. These plans are great deals because the money will grow tax-free until you withdraw it in retirement.

Tax-advantaged retirement accounts such as an IRA. Similar to a 401(k).
Regular investment account without any tax advantages.

If you are getting close to retiring, or are recently retired, now is the time to think about developing a strategy that seeks to generate income from your retirement portfolio. Make sure your asset allocation still meets your needs and risk tolerance and create a strategy to help meet your retirement income needs.

Where should you invest? That's the million dollar question, and many books claim to have an answer. The 3 main asset claasses are stocks, bonds and cash. Your retirement accounts should probably contain a mix of stocks and bonds, some cash too.



Calculators & Tools

Fidelity Planning & Guidance Center

Dave Ramsey Investment and Retirement Calculator

Bankrate Investment Calculator

Vanguard Tools and calculators

Helpful Links

CNBC's Warren Buffett Watch
Berkshire Hathaway Portfolio Tracker

Top ranking Financial Advisors and RIAs
This publication presents the lists of top financial advisors, Registered Investment Advisors (RIAs), and wealth management firms across the U.S. and U.K. that have been reviewed and rated in 2017.

Remember the most important rule of investing is, "Never Make an Investment if You Couldn't Afford a Total Loss."