Maximizing Financial Freedom Funding How do you choose which investment accounts are best for you? Before you start, make sure you have laid a solid foundation according to the previous steps in the path to financial freedom: Paid off all consumer debt Have adequate...
What Are Active & Passive Investing? There are two approaches or schools of thought when it comes to investing: Active investing – the portfolio manager attempts to outperform a standard index or benchmark by making proactive investment decisions Index investing –...
What Is Dollar Cost Averaging? Dollar cost averaging is another strategy in investing where investors contribute an equal dollar amount periodically into their investment accounts over time. The outcome of this strategy is: When prices are low, the contribution buys...
What Is Rebalancing? When you diversify your portfolio, you will arrive at your target asset allocation, a defined set of proportions for each asset class. The main asset classes that typically make up allocations are stocks and bonds but you may include other...
What Is Diversification? Diversification is the practice of spreading money across different types of investments to reduce risk and maximize your investments. You’ve likely heard the phrase, “Don’t put all your eggs in one basket.” This illustrates the concept of...
