Posted by Richard on June 9, 2015
The disadvantages, if any, may stem from the financial trade-offs that a mortgage holder needs to make when paying off the mortgage. Paying it off typically requires a cash outlay equal to the amount of the principal. If the principal is sizeable, this payment could potentially jeopardize a middle-income family’s ability to save for […]
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Bonds are popular investment vehicles because they pay interest income with a promise to pay back the initial investment after an agreed-upon period of time. Bond mutual funds may be even more popular among those seeking an income component in their portfolio because they offer a lower-cost, professionally managed, diversified alternative to individual bonds. However, […]
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A flexible spending account (FSA), offered as an elective benefit by many employers, permits workers to contribute, through payroll deduction, to accounts that are designated for specific qualifying medical or dental expenses. If your employer makes an FSA available, the account typically is used in conjunction with your employer-sponsored medical plan for out-of-pocket costs not […]
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Investors are exposed to financial risk in two ways: company-specific risk or market risk. Long-term investors can virtually eliminate exposure to company-specific risk by diversifying among many different securities in the same asset class.1 Market risk is managed — but not eliminated — by holding investments in several different asset classes. Both types of […]
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