THE BANKING AND THE AMERICAN FINANCIAL SYSTEM HISTORY, SUCCESS AND FAILURE
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| Deregulation, Bank Failures, and New Technology Several deregulatory moves made by the federal government in the 1980s diminished the distinctions among various financial institutions in the United States. Two major changes were the Depository Institutions Deregulation and Monetary Control Act (1980) and the Depository Institutions Act (1982), which allowed savings and loan associations to engage in often-risky commercial loans and real estate investments, and to receive checking deposits. By 1984, banks had federal support in buying discount brokerage firms, and commercial banks were beginning to acquire failed savings banks; in 1985 interstate banking was declared constitutional. Such deregulation was blamed for the unprecedented number of bank failures among saving and loans association, with over 500 such institutions closing between 1980 and 1988. The Federal Savings and Loan Insurance Corporation (FSLIC), until it became insolvent in 1989, insured deposits in all federally chartered—and in many state-chartered—savings and loan associations. Its outstanding insurance obligations in connection with savings and loan failures, over $100 billion, were transferred (1989) to the FDIC. Further deregulation occurred in 1999, when Congress overhauled the entire U.S. Financial system. Among other actions, the legislation repealed the Glass-Steagall Act, thus allowing banks to enter the insurance and securities businesses. Supporters predicted that the measure would permit U.S. Banks to diversify and compete more effectively on an international scale. Opponents warned that this deregulation could lead to failures of many financial institutions, as had occurred with the savings and loans. -------------------------------------------------------------------- Bank Failures American financial history to 1934 was characterized by numerous bank failures, because the majority of banks were local enterprises, not regional or national institutions with numerous branches. Lax state government regulations and inadequate examinations permitted many banks to pursue unsound practices. With most financial eggs in local economic baskets, it took only a serious crop failure or a business recession to precipitate dozens or even hundreds of bank failures. On the whole, state-chartered banks had a particularly poor record. Early Bank Failures Early-nineteenth-century banks were troubled by a currency shortage and the resulting inability to redeem their notes in specie. States later imposed penalties in those circumstances, but such an inability did not automatically signify failure. The first bank to fail was the Farmers' Exchange Bank of Glocester, R.I., in 1809. The statistics of bank failures between 1789 and 1863 are inadequate, but the losses were unquestionably large. John Jay Knox estimated that the losses to noteholders were 5 percent per annum, and bank notes were the chief money used by the general public. Not until after 1853 did banks' deposit liabilities exceed their note liabilities. Between 1830 and 1860, weekly news sheets called bank note reporters gave the latest discount quoted on the notes of weak and closed banks. All businesses had to allow for worthless bank notes. Although some states—such as New York in 1829 and 1838, Louisiana in 1842, and Indiana in 1834—established sound banking systems, banking as a whole was characterized by frequent failures. The establishment of the National Banking System in 1863 introduced needed regulations for national (i.e., nationally chartered) banks. These were larger and more numerous than state banks until 1894, but even their record left much to be desired. Between 1864 and 1913—a period that saw the number of banks rise from 1,532 to 26,664—515 national banks were suspended, and only two years passed without at least one suspension. State banks suffered 2,491 collapses during the same period. The worst year was the panic year of 1893, with almost five hundred bank failures. The establishment of the Federal reserve system in 1913 did little to improve the record of national banks. Although all banks were required to join the new system, 825 banks failed between 1914 and 1929, and an additional 1,947 failed by the end of 1933. During the same twenty years there were 12,714 state bank failures. By 1933 there were 14,771 banks in the United States, half as many as in 1920, and most of that half had disappeared by the failure route. During the 1920s, Canada, employing a branch banking system, had only one failure. Half a dozen states had experimented with deposit insurance plans without success. Apparently the situation needed the attention of the federal government. |
| General History OF BANKING A simple form of banking was practiced by the ancient temples of Egypt, Babylonia, and Greece, which loaned at high rates of interest the gold and silver deposited for safekeeping. Private banking existed by 600 B.C. and was considerably developed by the Greeks, Romans, and Byzantines. Medieval banking was dominated by the Jews and Levantines because of the strictures of the Christian Church against interest and because many other occupations were largely closed to Jews. The forerunners of modern banks were frequently chartered for a specific purpose, e.g., the Bank of Venice (1171) and the Bank of England (1694), in connection with loans to the government; the Bank of Amsterdam (1609), to receive deposits of gold and silver. Banking developed rapidly throughout the 18th and 19th cent., accompanying the expansion of industry and trade, with each nation evolving the distinctive forms peculiar to its economic and social life. History of banking in the United States Early Years to the Federal Reserve In the United States the first bank was the Bank of North America, established (1781) in Philadelphia. Congress chartered the first Bank of United States in 1791 to engage in general commercial banking and to act as the fiscal agent of the government, but did not renew its charter in 1811. A similar fate befell the second Bank of the United States, chartered in 1816 and closed in 1836. Prior to 1838 a bank charter could be obtained only by a specific legislative act, but in that year New York adopted the Free Banking Act, which permitted anyone to engage in banking, upon compliance with certain charter conditions. Free banking spread rapidly to other states, and from 1840 to 1863 all banking business was done by state-chartered institutions. In many Western states it degenerated into “wildcat” banking because of the laxity and abuse of state laws. Bank notes were issued against little or no security, and credit was overe-xpanded; depressions brought waves of bank failures. In particular, the multiplicity of state bank notes caused great confusion and loss. To correct such conditions, Congress passed (1863) the National Bank Act, which provided for a system of banks to be chartered by the federal government. In 1865, by granting national banks the authority to issue bank notes and by placing a prohibitive tax on state bank notes, an amendment to the act brought all banks under federal supervision. Most banks in existence did take out national charters, but some, being banks of deposit, were unaffected by the tax and continued under their state charters, thus giving rise to what is generally known as the “dual banking system.” The number of state banks expanded rapidly with the increasing use of bank checks. Recurrent banking panics caused by overe-xpansion of credit, inadequate bank reserves, and inelastic currency prompted Congress in 1908 to create the National Monetary Commission to investigate the banking and currency fields and to recommend legislation. Its suggestions were embodied in the Federal Reserve Act (1913), which provided for a central banking organization, the Federal Reserve System (Central Bank). Further Legislation Since the establishment of the Federal Reserve system, federal banking legislation has been limited largely to detailed amendments to the National Bank and Federal Reserve acts. The Glass-Steagall Act of 1932 and the Banking Act of 1933 together formed an extensive reform measure designed to correct the abuses that had led to numerous bank crises in the years following the stock market crash of 1929. The Glass-Steagall Act prohibited commercial banks from involvement in the securities and insurance businesses. The Banking Act strengthened the powers of supervisory authorities, increased controls over the volume and use of credit, and provided for the insurance of bank deposits under the Federal Deposit Insurance corporation (FDIC). The Banking Act of 1935 strengthened the powers of the Federal Reserve Board of Governors in the field of credit management, tightened existing restrictions on banks engaging in certain activities, and enlarged the supervisory powers of the FDIC. |
Fdic Established
The bank holocaust of the early 1930s—9,106 bank failures in four years, 1,947 of them national
banks—culminating in President Franklin D. Roosevelt's executive order declaring a nationwide bank
moratorium in March 1933, at last produced the needed drastic reforms. In 1933 Congress passed the
Glass-Steagall Act, which forbade Federal Reserve member banks to pay interest on demand deposits,
and founded the Federal Deposit Insurance Corporation (FDIC). In an effort to protect bank deposits
from rapid swings in the market, the Glass-Steagall Banking Act of 1933 forced banks to decide
between deposit safeholding and investment. Executives of security firms, for example, were prohibited
from sitting as trustees of commercial banks.
The FDIC raised its initial capital by selling two kinds of stock. Class A stock (paying dividends) came
from assessing every insured bank 0.5 percent of its total deposits—half paid in full, half subject to call.
All member banks of the Federal Reserve System had to be insured. Federal Reserve Banks had to buy
Class B stock (paying no dividends) with 0.5 percent of their surplus—half payable immediately, half
subject to call. In addition, any bank desiring to be insured paid .083 percent of its average deposits
annually. The FDIC first insured each depositor in a bank up to $2,500; in mid-1934 Congress put the
figure at $5,000; on 21 September 1950, the maximum became $10,000; on 16 October 1966, the
limit went to $15,000; on 23 December 1969, to $20,000; and on 27 November 1974, to $40,000. At
the end of 1971 the FDIC was insuring 98.6 percent of all commercial banks and fully protecting 99
percent of all depositors. However, it was protecting only about 64 percent of all deposits, with savings
deposits protected at a high percentage but business deposits at only about 55 percent. By the mid-
1970s the FDIC was examining more than 50 percent of the banks in the nation, which accounted for
about 20 percent of banking assets. It did not usually examine member banks of the Federal Reserve
System, which were the larger banks. There was a degree of rivalry between the large and small banks,
and the FDIC was viewed as the friend of the smaller banks.
Whereas in the 1920s banks failed at an average rate of about six hundred a year, during the first nine
years of the FDIC (1934–1942) there were 487 bank closings because of financial difficulties, mostly of
insured banks; 387 of these received disbursements from the FDIC. During the years from 1943 to 1972,
the average number of closings dropped to five per year. From 1934 to 1971 the corporation made
disbursements in 496 cases involving 1.8 million accounts, representing $1.215 billion in total deposits.
The FDIC in 1973 had $5.4 billion in assets. Through this protection, people were spared that traumatic
experience of past generations, a "run on the bank" and the loss of a large part of their savings. For
example, in 1974 the $5 billion Franklin National Bank of New York, twentieth in size in the nation,
failed. It was the largest failure in American banking history. The FDIC, the Federal Reserve, and the
controller of the currency arranged the sale of most of the bank's holdings, and no depositor lost a cent.
The bank holocaust of the early 1930s—9,106 bank failures in four years, 1,947 of them national
banks—culminating in President Franklin D. Roosevelt's executive order declaring a nationwide bank
moratorium in March 1933, at last produced the needed drastic reforms. In 1933 Congress passed the
Glass-Steagall Act, which forbade Federal Reserve member banks to pay interest on demand deposits,
and founded the Federal Deposit Insurance Corporation (FDIC). In an effort to protect bank deposits
from rapid swings in the market, the Glass-Steagall Banking Act of 1933 forced banks to decide
between deposit safeholding and investment. Executives of security firms, for example, were prohibited
from sitting as trustees of commercial banks.
The FDIC raised its initial capital by selling two kinds of stock. Class A stock (paying dividends) came
from assessing every insured bank 0.5 percent of its total deposits—half paid in full, half subject to call.
All member banks of the Federal Reserve System had to be insured. Federal Reserve Banks had to buy
Class B stock (paying no dividends) with 0.5 percent of their surplus—half payable immediately, half
subject to call. In addition, any bank desiring to be insured paid .083 percent of its average deposits
annually. The FDIC first insured each depositor in a bank up to $2,500; in mid-1934 Congress put the
figure at $5,000; on 21 September 1950, the maximum became $10,000; on 16 October 1966, the
limit went to $15,000; on 23 December 1969, to $20,000; and on 27 November 1974, to $40,000. At
the end of 1971 the FDIC was insuring 98.6 percent of all commercial banks and fully protecting 99
percent of all depositors. However, it was protecting only about 64 percent of all deposits, with savings
deposits protected at a high percentage but business deposits at only about 55 percent. By the mid-
1970s the FDIC was examining more than 50 percent of the banks in the nation, which accounted for
about 20 percent of banking assets. It did not usually examine member banks of the Federal Reserve
System, which were the larger banks. There was a degree of rivalry between the large and small banks,
and the FDIC was viewed as the friend of the smaller banks.
Whereas in the 1920s banks failed at an average rate of about six hundred a year, during the first nine
years of the FDIC (1934–1942) there were 487 bank closings because of financial difficulties, mostly of
insured banks; 387 of these received disbursements from the FDIC. During the years from 1943 to 1972,
the average number of closings dropped to five per year. From 1934 to 1971 the corporation made
disbursements in 496 cases involving 1.8 million accounts, representing $1.215 billion in total deposits.
The FDIC in 1973 had $5.4 billion in assets. Through this protection, people were spared that traumatic
experience of past generations, a "run on the bank" and the loss of a large part of their savings. For
example, in 1974 the $5 billion Franklin National Bank of New York, twentieth in size in the nation,
failed. It was the largest failure in American banking history. The FDIC, the Federal Reserve, and the
controller of the currency arranged the sale of most of the bank's holdings, and no depositor lost a cent.
The 1980s and the Savings and Loan Debacle
The widespread bank failures of the 1980s—more than sixteen hundred FDIC-insured banks were
closed or received financial assistance between 1980 and 1994—revealed major weaknesses in the
federal deposit insurance system. In the 1970s, mounting defense and social welfare costs, rising oil
prices, and the collapse of American manufacturing vitality in certain key industries (especially steel
and electronics) produced spiraling inflation and a depressed securities market. Securities
investments proved central to the economic recovery of the 1980s, as corporations cut costs through
mergers, takeovers, and leveraged buyouts.
The shifting corporate terrain created new opportunities for high-risk, high-yield investments known as
"junk bonds." The managers of the newly deregulated savings and loan (S&L) institutions, eager for
better returns, invested heavily in these and other investments—in particular, a booming commercial
real estate market.
When the real estate bubble burst, followed by a series of insider-trading indictments of Wall Street
financiers and revelations of corruption at the highest levels of the S&L industry, hundreds of the S&Ls
collapsed. In 1988 the Federal Home Loan Bank Board began the process of selling off the defunct
remains of 222 saving and loans. Congress passed sweeping legislation the following year that
authorized a massive government bailout and imposed strict new regulatory laws on the S&L industry.
The cost of the cleanup to U.S. taxpayers was $132 billion.
In addition to the S&L crisis, the overall trend within the banking industry during the 1980s was toward
weaker performance ratios, declining profitability, and a quick increase in loan charge-offs, all of which
placed an unusual strain on banks. Seeking stability in increased size, the banking industry responded
with a wave of consolidations and mergers.
This was possible in large part because Congress relaxed restrictions on branch banking in an effort to
give the industry flexibility in its attempts to adjust to the changing economy. Deregulation also made it
easier for banks to engage in risky behavior, however, contributing to a steep increase in bank failures
when loans and investments went bad in the volatile economic climate. Legislators found themselves
torn among the need to deregulate banks, the need to prevent failures, and the need to recapitalize
deposit insurance funds, which had suffered a huge loss during the decade. In general, they responded
by giving stronger tools to regulators but narrowly circumscribing the discretion of regulators to use
those tools.
During the 1990s, the globalization of the banking industry meant that instability abroad would have
rapid repercussions in American financial markets; this, along with banks' growing reliance on
computer systems, presented uncertain challenges to the stability of domestic banks in the final years
of the twentieth century. As the economy boomed in the second half of the decade, however, the
performance of the banking industry improved remarkably, and the number of bank failures rapidly
declined. Although it was unclear whether the industry had entered a new period of stability or was
merely benefiting from the improved economic context, the unsettling rise in bank failures of the 1980s
seemed to have been contained.
The widespread bank failures of the 1980s—more than sixteen hundred FDIC-insured banks were
closed or received financial assistance between 1980 and 1994—revealed major weaknesses in the
federal deposit insurance system. In the 1970s, mounting defense and social welfare costs, rising oil
prices, and the collapse of American manufacturing vitality in certain key industries (especially steel
and electronics) produced spiraling inflation and a depressed securities market. Securities
investments proved central to the economic recovery of the 1980s, as corporations cut costs through
mergers, takeovers, and leveraged buyouts.
The shifting corporate terrain created new opportunities for high-risk, high-yield investments known as
"junk bonds." The managers of the newly deregulated savings and loan (S&L) institutions, eager for
better returns, invested heavily in these and other investments—in particular, a booming commercial
real estate market.
When the real estate bubble burst, followed by a series of insider-trading indictments of Wall Street
financiers and revelations of corruption at the highest levels of the S&L industry, hundreds of the S&Ls
collapsed. In 1988 the Federal Home Loan Bank Board began the process of selling off the defunct
remains of 222 saving and loans. Congress passed sweeping legislation the following year that
authorized a massive government bailout and imposed strict new regulatory laws on the S&L industry.
The cost of the cleanup to U.S. taxpayers was $132 billion.
In addition to the S&L crisis, the overall trend within the banking industry during the 1980s was toward
weaker performance ratios, declining profitability, and a quick increase in loan charge-offs, all of which
placed an unusual strain on banks. Seeking stability in increased size, the banking industry responded
with a wave of consolidations and mergers.
This was possible in large part because Congress relaxed restrictions on branch banking in an effort to
give the industry flexibility in its attempts to adjust to the changing economy. Deregulation also made it
easier for banks to engage in risky behavior, however, contributing to a steep increase in bank failures
when loans and investments went bad in the volatile economic climate. Legislators found themselves
torn among the need to deregulate banks, the need to prevent failures, and the need to recapitalize
deposit insurance funds, which had suffered a huge loss during the decade. In general, they responded
by giving stronger tools to regulators but narrowly circumscribing the discretion of regulators to use
those tools.
During the 1990s, the globalization of the banking industry meant that instability abroad would have
rapid repercussions in American financial markets; this, along with banks' growing reliance on
computer systems, presented uncertain challenges to the stability of domestic banks in the final years
of the twentieth century. As the economy boomed in the second half of the decade, however, the
performance of the banking industry improved remarkably, and the number of bank failures rapidly
declined. Although it was unclear whether the industry had entered a new period of stability or was
merely benefiting from the improved economic context, the unsettling rise in bank failures of the 1980s
seemed to have been contained.
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Bank of America Financial Services
Wells Fargo Financial Services
PNC-National City Mortgage Financial Services
Citibank,Citifinancial, Citimortgage, Citigroup
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How & where to find money to invest in real estate? & How to make the Bank
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Top 6 Biggest U.S. Government Financial Bailouts In History!
The passage into U.S. law on October 3, 2008, of the $700 billion financial-sector rescue plan is the
latest in the long history of U.S. government bailouts that go back to the Panic of 1792,
when the federal government bailed out the 13 United States, which were over-burdened by their debt
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Influences money and credit conditions in the U.S., supervises and regulates banking, maintains the
stability of the financial system, and provides certain ...
Securities and Exchange Commission (SEC)
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Government. Treasury Direct Investment Programs...
U.S. Treasury securities are a great way to invest and save for the future. Here, you'll find overviews
regarding U.S. Treasury bonds, notes, bills, and TIPS....
Top 6 Biggest U.S. Government Financial Bailouts In History!
The passage into U.S. law on October 3, 2008, of the $700 billion financial-sector rescue plan is the
latest in the long history of U.S. government bailouts that go back to the Panic of 1792,
when the federal government bailed out the 13 United States, which were over-burdened by their debt
from the Revolutionary War
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..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN INVESTOR DECIDES TO
INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO NEGOTIATE SALE PRICE?...
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...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator Problems every investors should know about...
BUILDING FINANCIAL WEALTH, OBTAIN FINANCIAL FREEDOM, BECOME A RICH PERSON; YES YOU CAN...
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simple rule of financial success.
..MILLIONAIRE: How To Make Your First $1 Million? The Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE STOCK MARKET LEARN THIS FIRST!...
..GOVERNMENT: Government's general information; Local, State, and Federal.
Housing Finance Authority of Miami dade, Monroe, Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN INVESTOR DECIDES TO
INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator Problems every investors should know about...
The Twelve Federal Reserve Districts
Banks
Influences money and credit conditions in the U.S., supervises and
regulates banking, maintains the stability of the financial system, and
provides certain
Banks
Influences money and credit conditions in the U.S., supervises and
regulates banking, maintains the stability of the financial system, and
provides certain
..Life Insurance Advantages, Benefits, & Features While Alive and
After Death... Learn More Here!
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Money on Your Insurance. Learn More...
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Buy the Term, and invest the difference. Learn More...
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FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
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companies? Learn More.
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Protecting your most important assets is an important step in creating a solid
personal financial plan. The right insurance policies will go a long way toward
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THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE!
Your Financial Plan; Insurance is an important element of any sound financial
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Different types of insurance protect you and your loved ones in different ways
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INSURANCE KNOWLEDGE
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AFTER DEATH. INSURANCE GENERAL KNOWLEDGE, GLOBAL INSURANCE
INFORMATION FOR BETTER CHOICES, BETTER DECISION, BETTER
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Life insurance, payable when you die, can provide a surviving spouse,
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LIFE INSURANCE QUOTE. LEARN MORE..
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Ways to Reduce Your Life Insurance Premium
While you can't do anything about two of the three main factors affecting your
insurance premium (age and family medical history), there are steps you can
take regarding the third - lifestyle. You could lower your insurance premium if
you:
After Death... Learn More Here!
..Insurance General Information: Ways to Make Money & Save
Money on Your Insurance. Learn More...
..Term Insurance Advantages, Term Insurance General Knowledge.
Buy the Term, and invest the difference. Learn More...
..Life Insurance Quote. Find out if You Pay too much for Your
Insurance, Or Check How Much You Can Pay For a Life Insurance...
..Investment Products: Investing & Money Management Basics.
FINANCIAL SOLUTIONS, TOOLS & RESOURCES. LEARN MORE...
Insurance Products: How to make profits with the insurance
companies? Learn More.
..Five Insurance Policies Everyone Should Have
Protecting your most important assets is an important step in creating a solid
personal financial plan. The right insurance policies will go a long way toward
helping you safeguard your earning power and your possessions
THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE!
Your Financial Plan; Insurance is an important element of any sound financial
plan
Different types of insurance protect you and your loved ones in different ways
against the cost of accidents, illness, disability, and death.
INSURANCE KNOWLEDGE
LIFE INSURANCE ADVANTAGES, FEATURES AND BENEFITS WHILE ALIVE AND
AFTER DEATH. INSURANCE GENERAL KNOWLEDGE, GLOBAL INSURANCE
INFORMATION FOR BETTER CHOICES, BETTER DECISION, BETTER
GUARANTEE AND BETTER SATISFACTION. LEARN MORE HERE...
..HOW TO OBTAIN AN INSURANCE LICENSE, AND GET HIRED, START
WORKING IMMEDIATELY WITH ONE OF THE GREATEST INSURANCE COMPANY
IN THE WORLD?
FREE INSURANCE SCHOOL, FREE COURSE, FREE TRAINING, FREE
FINGERPRINT, FREE BOOKS FOR THOSE WHO LIVE IN MIAMI DADE AND
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Life Insurance
Life insurance, payable when you die, can provide a surviving spouse,
children, and other dependents with the funds necessary to maintain their
standards of living, can help repay debt, and can fund education tuition costs.
LIFE INSURANCE QUOTE. LEARN MORE..
the least amount of coverage, and vice versa.
Ways to Reduce Your Life Insurance Premium
While you can't do anything about two of the three main factors affecting your
insurance premium (age and family medical history), there are steps you can
take regarding the third - lifestyle. You could lower your insurance premium if
you:
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What Documents Do I Need?
What documents are needed for mortgage pre-approval? This is
another common question among first-time home buyers.
The list of documents will vary, depending on which lender you
use. But most of them will ask for some or all of the following items:
use. But most of them will ask for some or all of the following items:
mortgage docs
Your lender will give you a complete list of the documents they
need, at the time you submit an application. They might even
have this list published on their website somewhere.
----------------------------------
''How to Get Pre-Approved for a Mortgage What
is a pre-approval?
''A pre-approval Mortgage - is a commitment in writing
from a lender that a borrower would qualify for a particular loan
amount based on income and credit information.
Most pre-approval letters are good for 60 to 90 days.
--------------------------------
What documents are needed for mortgage pre-approval? This is
another common question among first-time home buyers.
The list of documents will vary, depending on which lender you
use. But most of them will ask for some or all of the following items:
use. But most of them will ask for some or all of the following items:
mortgage docs
Your lender will give you a complete list of the documents they
need, at the time you submit an application. They might even
have this list published on their website somewhere.
----------------------------------
''How to Get Pre-Approved for a Mortgage What
is a pre-approval?
''A pre-approval Mortgage - is a commitment in writing
from a lender that a borrower would qualify for a particular loan
amount based on income and credit information.
Most pre-approval letters are good for 60 to 90 days.
--------------------------------
''Financial Academy School - Academy Of Finance Is On Facebook''-
WhyFixed Income Investing?...
Fixed income is an investment approach focused on preservation of capital and income. It typically includes investments like government and
corporate bonds, CDs and money market funds. Fixed income can offer a steady stream of income with less risk than stocks.
-------------
If you’re seeking to grow your wealth investments over time to save for retirement or other long-term goals, you probably hold a significant amount
of stocks in your portfolio. But by allocating a portion of your portfolio to fixed income investments, you can potentially help offset losses when stock
markets swing.
Capital preservation means protecting the absolute value of your investment via assets that have a stated objective of return of
principal. Investors who are closer to retirement may rely on their investments to provide income .
Income generation
Fixed income investments can help you generate a steady source of income. Investors receive a fixed amount of income at regular intervals in the
form of coupon payments on their bond holdings. In the case of many, municipal bonds,
Fixed income is an investment approach focused on preservation of capital and income. It typically includes investments like government and
corporate bonds, CDs and money market funds. Fixed income can offer a steady stream of income with less risk than stocks.
-------------
If you’re seeking to grow your wealth investments over time to save for retirement or other long-term goals, you probably hold a significant amount
of stocks in your portfolio. But by allocating a portion of your portfolio to fixed income investments, you can potentially help offset losses when stock
markets swing.
Capital preservation means protecting the absolute value of your investment via assets that have a stated objective of return of
principal. Investors who are closer to retirement may rely on their investments to provide income .
Income generation
Fixed income investments can help you generate a steady source of income. Investors receive a fixed amount of income at regular intervals in the
form of coupon payments on their bond holdings. In the case of many, municipal bonds,
Things to Know About Government Bond Investing...
Bonds are seen as a safe haven for investors.
While government bonds such as U.S. Treasury and municipal bonds provide income to investors such as retirees, these assets face interest rate
risk when the Federal Reserve lowers rates for an extended period.
Bonds are often perceived by investors as a safe asset when stock returns are volatile but yields in bonds are sensitive to declining interest rates.
U.S. Treasury bonds are issued by the federal government while municipal bonds are issued by a state, city or government agency such as a toll
road authority or school district.
The government entity who issues the bond agrees to pay the face value of the bond when it is due or matures and interest on the bond for its
duration.
Bonds are seen as a safe haven for investors.
While government bonds such as U.S. Treasury and municipal bonds provide income to investors such as retirees, these assets face interest rate
risk when the Federal Reserve lowers rates for an extended period.
Bonds are often perceived by investors as a safe asset when stock returns are volatile but yields in bonds are sensitive to declining interest rates.
U.S. Treasury bonds are issued by the federal government while municipal bonds are issued by a state, city or government agency such as a toll
road authority or school district.
The government entity who issues the bond agrees to pay the face value of the bond when it is due or matures and interest on the bond for its
duration.
Fixed-income investing is a
strategy that focuses on low-risk
investments paying a reliable
return.
Fixed-income strategies
Laddering strategy Investors who believe that rates will rise in the
future often ladder their investments so that they don't miss out on
rising interest rates. ...
Barbell strategy A barbell strategy seeks to generate a
higher yield on fixed-income investments by putting a small amount of
capital in higher-risk investments. ...
Rebalancing strategy
Fixed-income investing involves assets that generate a stable and
often predetermined return, usually by way of set interest payments or
dividends.
Fixed-income investments are typically considered low risk, and
include bonds, CDs, annuities, and preferred stock.
Though relatively safe, fixed-income vehicles are subject to inflation
risk and don't offer much capital appreciation or growth.
Fixed-income investing is a strategy in
which the name of the game is income. It
aims to provide investors with a steady cash stream, like a regular
paycheck. It's a conservative approach — in fact, it's often considered
one the safest ways to invest, avoiding the risky equities market.
Income investing — and fixed-income investing in
particular — is the opposite of growth investing. The sort of assets
that generate steady money tend not to be the type that'll appreciate
in value much. On the other hand, they (usually) won't go down; they
offer financial security, especially if you hold onto them.
---------
strategy that focuses on low-risk
investments paying a reliable
return.
Fixed-income strategies
Laddering strategy Investors who believe that rates will rise in the
future often ladder their investments so that they don't miss out on
rising interest rates. ...
Barbell strategy A barbell strategy seeks to generate a
higher yield on fixed-income investments by putting a small amount of
capital in higher-risk investments. ...
Rebalancing strategy
Fixed-income investing involves assets that generate a stable and
often predetermined return, usually by way of set interest payments or
dividends.
Fixed-income investments are typically considered low risk, and
include bonds, CDs, annuities, and preferred stock.
Though relatively safe, fixed-income vehicles are subject to inflation
risk and don't offer much capital appreciation or growth.
Fixed-income investing is a strategy in
which the name of the game is income. It
aims to provide investors with a steady cash stream, like a regular
paycheck. It's a conservative approach — in fact, it's often considered
one the safest ways to invest, avoiding the risky equities market.
Income investing — and fixed-income investing in
particular — is the opposite of growth investing. The sort of assets
that generate steady money tend not to be the type that'll appreciate
in value much. On the other hand, they (usually) won't go down; they
offer financial security, especially if you hold onto them.
---------
Types of Fixed-Income Investments
Bonds provide income with less volatility in a portfolio.
Fixed-income investment?
Bonds are stable assets that offer income and a lower amount of
volatility compared to stocks.
The yields provided by corporate and government bonds such as
U.S. Treasurys and municipal bonds are currently low because the
Federal Reserve lowered interest rates for an extended period.
Fixed-income investments such as
intermediate- or longer-term bond funds are still providing a
decent yield despite the low interest rate environment,
Bonds provide income with less volatility in a portfolio.
Fixed-income investment?
Bonds are stable assets that offer income and a lower amount of
volatility compared to stocks.
The yields provided by corporate and government bonds such as
U.S. Treasurys and municipal bonds are currently low because the
Federal Reserve lowered interest rates for an extended period.
Fixed-income investments such as
intermediate- or longer-term bond funds are still providing a
decent yield despite the low interest rate environment,
Types of fixed-income investments
There are several types of fixed-income investments. Their
payouts vary, but the rates all tend to be higher than those of the
average savings account. Here are the most common:
1. Bonds
When people think of fixed-income investments, bonds are usually
the first thing that comes to mind. Government bonds, like US
Treasuries, are the most common. Other types include corporate
bonds and municipal bonds.
In most cases, you can think of these sorts of fixed-income
investments like a loan: The borrower is the bond's issuer, and the
investor, rather than a financial institution, is the lender.
A bond has a set lifespan; when it eventually
matures, the investor gets back what they initially paid along with
added interest along the way.
When it comes to risk, the issuer's creditworthiness is important.
But so is the bond's lifespan —that is, how long it takes to mature.
Overall, long-term bonds — particularly corporate
long-term bonds — provide the highest returns, but are also
considered the riskiest. This is because they're most vulnerable to
interest rate hikes, which can lessen the value of the bond if an
investor is trying to sell it before it reaches maturity.
===========
Bond ETFs and Bond Mutual Funds
Rather than purchasing an individual bond, an investor may wish
to invest in a bond ETF (exchange-traded fund) or bond mutual
funds.
In both these cases, you're buying into a portfolio of bonds. This
type of diversification leads to a more stable investment.
=============
Fixed annuities
A fixed annuity is actually a sort of contract with an insurance
company. The agreement calls for the company to pay the same
sum at regular intervals for a set period of time.
Since it functions sort of like a salary, annuities are very popular
among people who have retired or are nearing retirement.
When buying an annuity, investors will generally invest a lump sum
with the insurer. This money is repaid to them, with interest, over
time.
============
CDs
Like bonds, certificates of deposit (CDs)
offered by banks and credit unions are a slightly better-paying
alternative to the average savings account. And they work in a
similar way.
You buy a CD by depositing a lump sum in an account at the
financial institution. In layman's terms, you're giving them a loan.
The CD earns interest for a set period of time — between six
months and 10 years, depending on the CD. When the time's up,
you'll get back your initial deposit.
=============
5. Preferred Stocks
Most forms of fixed-income investing don't give you equity, or
ownership, in anything. Even corporate bonds function merely as a
loan to the company.
But preferred stock is sort of the best of both worlds —
possessing the prime features of both bonds and stock shares.
Preferred stock are shares in a company.
They offer regular dividends, which come from the company's
profits, that are paid out in a fixed amount every quarter — like
bond interest.
The payment doesn't typically fluctuate the same way a common
share dividend does, and it's usually higher, too.
But since preferred shares are stocks, they do trade on the
market, and they can appreciate in price — especially if the
company does well. However, they don't grow as much as common
shares do.
Preferred stock is riskier than other
fixed-income vehicles because it's tied
to a company's success. If a company runs into
serious financial trouble, it might have to suspend dividend
payments — though preferred shareholders still get paid before
common shareholders.
There are several types of fixed-income investments. Their
payouts vary, but the rates all tend to be higher than those of the
average savings account. Here are the most common:
1. Bonds
When people think of fixed-income investments, bonds are usually
the first thing that comes to mind. Government bonds, like US
Treasuries, are the most common. Other types include corporate
bonds and municipal bonds.
In most cases, you can think of these sorts of fixed-income
investments like a loan: The borrower is the bond's issuer, and the
investor, rather than a financial institution, is the lender.
A bond has a set lifespan; when it eventually
matures, the investor gets back what they initially paid along with
added interest along the way.
When it comes to risk, the issuer's creditworthiness is important.
But so is the bond's lifespan —that is, how long it takes to mature.
Overall, long-term bonds — particularly corporate
long-term bonds — provide the highest returns, but are also
considered the riskiest. This is because they're most vulnerable to
interest rate hikes, which can lessen the value of the bond if an
investor is trying to sell it before it reaches maturity.
===========
Bond ETFs and Bond Mutual Funds
Rather than purchasing an individual bond, an investor may wish
to invest in a bond ETF (exchange-traded fund) or bond mutual
funds.
In both these cases, you're buying into a portfolio of bonds. This
type of diversification leads to a more stable investment.
=============
Fixed annuities
A fixed annuity is actually a sort of contract with an insurance
company. The agreement calls for the company to pay the same
sum at regular intervals for a set period of time.
Since it functions sort of like a salary, annuities are very popular
among people who have retired or are nearing retirement.
When buying an annuity, investors will generally invest a lump sum
with the insurer. This money is repaid to them, with interest, over
time.
============
CDs
Like bonds, certificates of deposit (CDs)
offered by banks and credit unions are a slightly better-paying
alternative to the average savings account. And they work in a
similar way.
You buy a CD by depositing a lump sum in an account at the
financial institution. In layman's terms, you're giving them a loan.
The CD earns interest for a set period of time — between six
months and 10 years, depending on the CD. When the time's up,
you'll get back your initial deposit.
=============
5. Preferred Stocks
Most forms of fixed-income investing don't give you equity, or
ownership, in anything. Even corporate bonds function merely as a
loan to the company.
But preferred stock is sort of the best of both worlds —
possessing the prime features of both bonds and stock shares.
Preferred stock are shares in a company.
They offer regular dividends, which come from the company's
profits, that are paid out in a fixed amount every quarter — like
bond interest.
The payment doesn't typically fluctuate the same way a common
share dividend does, and it's usually higher, too.
But since preferred shares are stocks, they do trade on the
market, and they can appreciate in price — especially if the
company does well. However, they don't grow as much as common
shares do.
Preferred stock is riskier than other
fixed-income vehicles because it's tied
to a company's success. If a company runs into
serious financial trouble, it might have to suspend dividend
payments — though preferred shareholders still get paid before
common shareholders.
Benefits of fixed-income investing...
Fixed-income investments are particularly
secure because:
They provide steady interest throughout the investment's lifetime.
You've got a locked-in interest rate.
Your principal is backed or guaranteed by the US government (T-
bonds) or the FDIC (CDs).
Unlike stockholders, fixed-income investors can become creditors
during a bankruptcy, meaning all or a portion of their initial investment
may be returned.
Bonds are given grades by credit rating agencies, signifying their
issuers' ability to repay, so investors can understand their risk before
they buy.
===========
RISKS OF FIXED INCOME INVESTMENTS...
Credit risk: an issuer defaulting on interest payments or paying
back the principal at maturity.
Inflation risk. If prices rise, it'll eat into the value of your fixed
payments. Your initial investment may not have as much buying power
when it is returned, either.
Interest rate risk. You'll miss out on higher returns if
interest rates rise and you're locked into a lower fixed rate.
Liquidity risk
Liquidity risk is the chance that an investor might want to sell
a fixed income asset, but they’re unable to find a buyer.
---------
Sustainable investing is about investing in progress, and recognizing
that companies solving the world’s biggest challenges can be best
positioned to grow.
It is about pioneering better ways of doing business .
===========
Fixed-income investments are particularly
secure because:
They provide steady interest throughout the investment's lifetime.
You've got a locked-in interest rate.
Your principal is backed or guaranteed by the US government (T-
bonds) or the FDIC (CDs).
Unlike stockholders, fixed-income investors can become creditors
during a bankruptcy, meaning all or a portion of their initial investment
may be returned.
Bonds are given grades by credit rating agencies, signifying their
issuers' ability to repay, so investors can understand their risk before
they buy.
===========
RISKS OF FIXED INCOME INVESTMENTS...
Credit risk: an issuer defaulting on interest payments or paying
back the principal at maturity.
Inflation risk. If prices rise, it'll eat into the value of your fixed
payments. Your initial investment may not have as much buying power
when it is returned, either.
Interest rate risk. You'll miss out on higher returns if
interest rates rise and you're locked into a lower fixed rate.
Liquidity risk
Liquidity risk is the chance that an investor might want to sell
a fixed income asset, but they’re unable to find a buyer.
---------
Sustainable investing is about investing in progress, and recognizing
that companies solving the world’s biggest challenges can be best
positioned to grow.
It is about pioneering better ways of doing business .
===========
| Fixed Income Analyst... A fixed income analyst has three areas of responsibility: determine the value of debt securities, create advice reports, and monitor performance. The analyst typically has a university degree in finance, accounting, or related field. Employment opportunities for this type of analyst are available in investment firms, large banks, and related industries. ------------ What is an independent financial advisor? Independent Registered Investment Advisors (RIAs) are professional independent advisory firms that provide personalized financial advice to their clients, many of whom have complex financial needs. They are registered with either the Securities and Exchange Commission or state securities regulators. --------- Knowledge Financial Group is helping women invest esier, smarter with more confidence. ========= Knowledge Financial Group is where the future millionaires come to get inspiration. ========= Knowledge Financial Group is where business oriented people, investors and traders come to increase their knowledge and improve their sharping their skill. ========= People anywhere in the world can buy and sell whatever they want, building wealth is more easier than ever. Debt is a powerful weapon used to make the middle, poor work for the rich. ======== Many people in America are 1 to 3 paychecks away from financial disaster from foreclosure from eviction that's why people should have multiple sources of income. ========== INFORMATION PROVIDED BY THE FINANCIAL ANALYST, ANTHONY JEANTY. FOR KNOWLEDGE FINANCIAL GROUP - WWW.KNOWLEDGEFINANCIALGROUP.COM - WWW.KNOWLEDGEFINANCIALGROUP.BLOGSPOT.COM Knowledge Financial Group and absolute guide to financial independence the real source for financial knowledge and useful tool for investors and traders. WWW.FACEBOOK.COM/KNOWLEDGEFINANCIAL |
Knocking barriers for ordinary investors has always been our mission. At Visionone Holding Company and
@ Visionone Vapital Management Promise to never stop innovating and delivering quality, reliable
information, investing winning methods, techniques and
excellent strategies --
=============
By the fixed income analyst of: FEMKONSA CAPITAL INVESTMENT - WWW.FACEBOOK.COM/FEMKONSA
== WWW.FEMKONSA.BLOGSPOT.COM
Index mutual funds track various indexes. The Standard & Poor’s 500 index is one of the
best-known indexes''''
Index funds benefits and advantages ...
1. Owning a very large share of the market instead of owning one company
2. Cheaper than actively managed mutual funds, less cost.
3. They can produce passive income via dividend payments
4. Diversification instead of one company you own many companies
5. Compound interest by reinvesting the dividend, money making money.
6. Less work, less time consuming in looking for looking for individual stocks.
@ Visionone Vapital Management Promise to never stop innovating and delivering quality, reliable
information, investing winning methods, techniques and
excellent strategies --
=============
By the fixed income analyst of: FEMKONSA CAPITAL INVESTMENT - WWW.FACEBOOK.COM/FEMKONSA
== WWW.FEMKONSA.BLOGSPOT.COM
Index mutual funds track various indexes. The Standard & Poor’s 500 index is one of the
best-known indexes''''
Index funds benefits and advantages ...
1. Owning a very large share of the market instead of owning one company
2. Cheaper than actively managed mutual funds, less cost.
3. They can produce passive income via dividend payments
4. Diversification instead of one company you own many companies
5. Compound interest by reinvesting the dividend, money making money.
6. Less work, less time consuming in looking for looking for individual stocks.
| Fixed Income Investing General Information At: KNOWLEDGE FINANCIAL GROUP.. |
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Elite Dividend Stocks With Unreal
Track Records
These are the "dividend aristocrats," the best dividend stocks
in the
S&P 500.Rock-solid dividend stocks you can bank on.
Finding great dividend stocks is hard work. Any company
can pay a dividend. But is it prudent, sustainable, based on
a sound and stable long-term business, and liable to grow?
A complete list of dividend aristocrats.
To review, here’s a complete list of the “dividend
aristocrats,” the only companies in the S&P 500 that have
raised dividends for 25 straight years:
3M (MMM) - Abbott Laboratories (ABT)AbbVie (ABBV)
Aflac (AFL) - Air Products & Chemicals (APD)A.
O. Smith Corp. (AOS)Archer-Daniels Midland
(ADM)AT&T (T)Automatic Data Processing
(ADP)Becton, Dickinson and Co.
(BDX)Brown-Forman Corp.
(BF.B)Chevron Corp.
(CVX)Chubb (CB)Cincinnati Financial Corp.
(CINF)Cintas Corp. (CTAS)The Clorox Co.
(CLX)The Coca-Cola Co. (KO)Colgate-Palmolive Co.
(CL)Consolidated Edison (ED)Dover Corp.
(DOV)Ecolab (ECL)Emerson Electric Co.
(EMR)Exxon Mobil Corp. (XOM)
Federal Realty Investment Trust
(FRT)Franklin Resources (BEN)General Dynamics Corp.
(GD)Genuine Parts Co. (GPC)Hormel Foods Corp.
(HRL)Illinois Tool Works (ITW)Johnson and Johnson
(JNJ)Kimberly-Clark Corp. (KMB)Leggett & Platt
(LEG)Lowe's Companies (LOW)McCormick & Co.
(MKC)McDonald's Corp. (MCD)Medtronic
(MDT)Nucor Corp. (NUE)Pentair (PNR)People's United
Financial
(PBCT)PepsiCo (PEP)PPG Industries
(PPG)Procter & Gamble Co. (PG)Roper Technologies
(ROP)S&P Global (SPGI)The Sherwin-Williams Co.
(SHW)Stanley Black & Decker (SWK)Sysco Corp. (SYY)T.
Rowe Price Group (TROW)Target Corp. (TGT)United
Technologies
(UTX)V.F. Corp. (VFC)Walgreens Boots Alliance
(WBA)Walmart (WMT)W.W. Grainger (GWW)
The best tech stocks to buy...
Microsoft Corp. (MSFT)Dell
Technologies (DELL)Adobe (ADBE) AT&T (T)Facebook (FB)
STMicroelectronics (STM)Alibaba Group Holding (BABA)
IAC/Interactive Corp. (IAC)58.com (WUBA) The Rubicon
Project (RUBI)
Best Blue-Chip Stocks to Buy The best blue-chip stocks
this year When investors think of blue-chip stocks, they
think of tried and true, large companies with entrenched
businesses.
They think of robust cash flows, healthy financials, and
stocks they can own and still sleep well at night regardless
of short-term gyrations.
The best blue-chip stocks to buy for this
year....
Berkshire Hathaway (BRK.B, BRK.A)AbbVie (ABBV)Alibaba Group
Holding (BABA)Johnson & Johnson (JNJ)Facebook (FB)
British American Tobacco p.l.c. (BTI)McDonald’s Corp.
(MCD)Duke Energy (DUK) Dollar General Corp. (DG)
Novartis (NVS)
The Best Health Care Stocks to BuyDaVita (DVA)Novartis
(NVS)Idexx Labs (IDXX)AbbVie (ABBV)Anthem (ANTM)
Takeda Pharmaceutical (TAK) CVS Corp. (CVS)Cigna
(CI)
Intercept Pharmaceuticals (ICPT)Johnson & Johnson (JNJ)
ETFs can entail risks similar to direct stock ownership,
including
market, sector, or industry risks. Some
ETFs may involve
international risk, currency risk, commodity risk, and interest
rate
risk. Trading prices may not reflect the net asset value of the
underlying securities. Commission fees typically apply.
Track Records
These are the "dividend aristocrats," the best dividend stocks
in the
S&P 500.Rock-solid dividend stocks you can bank on.
Finding great dividend stocks is hard work. Any company
can pay a dividend. But is it prudent, sustainable, based on
a sound and stable long-term business, and liable to grow?
A complete list of dividend aristocrats.
To review, here’s a complete list of the “dividend
aristocrats,” the only companies in the S&P 500 that have
raised dividends for 25 straight years:
3M (MMM) - Abbott Laboratories (ABT)AbbVie (ABBV)
Aflac (AFL) - Air Products & Chemicals (APD)A.
O. Smith Corp. (AOS)Archer-Daniels Midland
(ADM)AT&T (T)Automatic Data Processing
(ADP)Becton, Dickinson and Co.
(BDX)Brown-Forman Corp.
(BF.B)Chevron Corp.
(CVX)Chubb (CB)Cincinnati Financial Corp.
(CINF)Cintas Corp. (CTAS)The Clorox Co.
(CLX)The Coca-Cola Co. (KO)Colgate-Palmolive Co.
(CL)Consolidated Edison (ED)Dover Corp.
(DOV)Ecolab (ECL)Emerson Electric Co.
(EMR)Exxon Mobil Corp. (XOM)
Federal Realty Investment Trust
(FRT)Franklin Resources (BEN)General Dynamics Corp.
(GD)Genuine Parts Co. (GPC)Hormel Foods Corp.
(HRL)Illinois Tool Works (ITW)Johnson and Johnson
(JNJ)Kimberly-Clark Corp. (KMB)Leggett & Platt
(LEG)Lowe's Companies (LOW)McCormick & Co.
(MKC)McDonald's Corp. (MCD)Medtronic
(MDT)Nucor Corp. (NUE)Pentair (PNR)People's United
Financial
(PBCT)PepsiCo (PEP)PPG Industries
(PPG)Procter & Gamble Co. (PG)Roper Technologies
(ROP)S&P Global (SPGI)The Sherwin-Williams Co.
(SHW)Stanley Black & Decker (SWK)Sysco Corp. (SYY)T.
Rowe Price Group (TROW)Target Corp. (TGT)United
Technologies
(UTX)V.F. Corp. (VFC)Walgreens Boots Alliance
(WBA)Walmart (WMT)W.W. Grainger (GWW)
The best tech stocks to buy...
Microsoft Corp. (MSFT)Dell
Technologies (DELL)Adobe (ADBE) AT&T (T)Facebook (FB)
STMicroelectronics (STM)Alibaba Group Holding (BABA)
IAC/Interactive Corp. (IAC)58.com (WUBA) The Rubicon
Project (RUBI)
Best Blue-Chip Stocks to Buy The best blue-chip stocks
this year When investors think of blue-chip stocks, they
think of tried and true, large companies with entrenched
businesses.
They think of robust cash flows, healthy financials, and
stocks they can own and still sleep well at night regardless
of short-term gyrations.
The best blue-chip stocks to buy for this
year....
Berkshire Hathaway (BRK.B, BRK.A)AbbVie (ABBV)Alibaba Group
Holding (BABA)Johnson & Johnson (JNJ)Facebook (FB)
British American Tobacco p.l.c. (BTI)McDonald’s Corp.
(MCD)Duke Energy (DUK) Dollar General Corp. (DG)
Novartis (NVS)
The Best Health Care Stocks to BuyDaVita (DVA)Novartis
(NVS)Idexx Labs (IDXX)AbbVie (ABBV)Anthem (ANTM)
Takeda Pharmaceutical (TAK) CVS Corp. (CVS)Cigna
(CI)
Intercept Pharmaceuticals (ICPT)Johnson & Johnson (JNJ)
ETFs can entail risks similar to direct stock ownership,
including
market, sector, or industry risks. Some
ETFs may involve
international risk, currency risk, commodity risk, and interest
rate
risk. Trading prices may not reflect the net asset value of the
underlying securities. Commission fees typically apply.
How much money you need to start investing: Not
a lot. In fact, it’s
mathematically proven that it’s better to start small than to
wait until you have more to deploy — even if you try to play
catch-up down the road.
That little eye-opener is thanks to a magic formula called
compound interest.
----------------
What to invest in: Hedge funds, Venture capital,
Private equity firms,or the easiest way is: Stocks. Or at least
investment vehicles that provide exposure to the stock
market. The stock market is the place that will deliver the best
long-term return on your money.ALSO INDEX FUNDS AND
ETF,S
ETFs (exchange-traded funds).
Like index funds, ETFs contain a bundle of investments that
can range from stocks to bonds to currencies and cash.
The beauty of an ETF is that it trades like a stock, which
means investors can purchase them for a share price that is
often less than the $500-plus minimum investment many
mutual funds require.
----------------
Index Funds: How to Invest and Best Funds to Choose
Index funds are a low-fee, no-fuss way to invest. It might be
the smartest and easiest investment you ever make.
Index Funds:
They’re an easy, hands-off, diversified, low-cost way to
invest in the stock market.
When investors buy an index fund, they get a well-rounded
selection of many stocks in one package without having to
purchase each individually.
And because these funds simply hold all the investments in a
given index — versus an actively managed fund that pays a
professional to do the stock picking — management fees
tend to be low.
The result: Higher investment returns for individual investors.
Decide where to buy
You can purchase an index fund directly from a mutual fund
company or a brokerage. Same goes for exchange-traded
funds (ETFs), which are like mini mutual funds that trade like
stocks throughout the day (more on these below).
Fund selection. Do you want to purchase index
funds from various fund families? The big mutual fund
companies carry some of their competitors’ funds, but the
selection may be more limited than what’s available in a
discount broker’s lineup.
Convenience. Find a single provider who can
accommodate all your needs For example, if you’re just
going to invest in mutual funds (or even a mix of funds and
stocks), a mutual fund company may be able to serve as
your investment hub.
But if you require sophisticated stock research and
screening tools, a discount broker that also sells the index
funds you want may be better. (If you don't have a brokerage
account, here's how to open one.)
------------
Trading costs. If the commission or transaction fee
isn’t waived, consider how much a broker or fund company
charges to buy or sell the index fund.
Mutual fund commissions are higher than stock trading
ones, about $20 or more, compared with less than $10 a
trade for stocks and ETFs.
Commission-free options. Do they offer no-transaction-fee
mutual funds or commission-free ETFs?
------------------
Index mutual funds track various
indexes. The Standard & Poor’s 500 index is one of the
best-known indexes because the 500 companies it tracks
include large, well-known U.S.-based businesses
representing a wide range of industries.
But the S&P 500 isn’t the only index in town. There are
indexes — and corresponding index funds — composed of
stocks or other assets that are chosen based on:
Company size and capitalization. Index
funds that track small, medium-sized or large companies
(also known as small-, mid- or large-cap indexes).
Geography. These funds focus on stocks that trade on
foreign exchanges or a combination of international
exchanges.
Business sector or industry. Funds that focus on consumer
goods, technology, health-related businesses, for example.
Asset type. Funds that track domestic and
foreign bonds, commodities, cash.
Market opportunities. Emerging markets or other nascent but
growing sectors for investment.
The main costs to consider:
Investment minimum. The minimum required to
invest in a mutual fund can run as high as a few thousand
dollars. Once you’ve crossed that threshold, most funds
allow investors to add money in smaller increments.
a lot. In fact, it’s
mathematically proven that it’s better to start small than to
wait until you have more to deploy — even if you try to play
catch-up down the road.
That little eye-opener is thanks to a magic formula called
compound interest.
----------------
What to invest in: Hedge funds, Venture capital,
Private equity firms,or the easiest way is: Stocks. Or at least
investment vehicles that provide exposure to the stock
market. The stock market is the place that will deliver the best
long-term return on your money.ALSO INDEX FUNDS AND
ETF,S
ETFs (exchange-traded funds).
Like index funds, ETFs contain a bundle of investments that
can range from stocks to bonds to currencies and cash.
The beauty of an ETF is that it trades like a stock, which
means investors can purchase them for a share price that is
often less than the $500-plus minimum investment many
mutual funds require.
----------------
Index Funds: How to Invest and Best Funds to Choose
Index funds are a low-fee, no-fuss way to invest. It might be
the smartest and easiest investment you ever make.
Index Funds:
They’re an easy, hands-off, diversified, low-cost way to
invest in the stock market.
When investors buy an index fund, they get a well-rounded
selection of many stocks in one package without having to
purchase each individually.
And because these funds simply hold all the investments in a
given index — versus an actively managed fund that pays a
professional to do the stock picking — management fees
tend to be low.
The result: Higher investment returns for individual investors.
Decide where to buy
You can purchase an index fund directly from a mutual fund
company or a brokerage. Same goes for exchange-traded
funds (ETFs), which are like mini mutual funds that trade like
stocks throughout the day (more on these below).
Fund selection. Do you want to purchase index
funds from various fund families? The big mutual fund
companies carry some of their competitors’ funds, but the
selection may be more limited than what’s available in a
discount broker’s lineup.
Convenience. Find a single provider who can
accommodate all your needs For example, if you’re just
going to invest in mutual funds (or even a mix of funds and
stocks), a mutual fund company may be able to serve as
your investment hub.
But if you require sophisticated stock research and
screening tools, a discount broker that also sells the index
funds you want may be better. (If you don't have a brokerage
account, here's how to open one.)
------------
Trading costs. If the commission or transaction fee
isn’t waived, consider how much a broker or fund company
charges to buy or sell the index fund.
Mutual fund commissions are higher than stock trading
ones, about $20 or more, compared with less than $10 a
trade for stocks and ETFs.
Commission-free options. Do they offer no-transaction-fee
mutual funds or commission-free ETFs?
------------------
Index mutual funds track various
indexes. The Standard & Poor’s 500 index is one of the
best-known indexes because the 500 companies it tracks
include large, well-known U.S.-based businesses
representing a wide range of industries.
But the S&P 500 isn’t the only index in town. There are
indexes — and corresponding index funds — composed of
stocks or other assets that are chosen based on:
Company size and capitalization. Index
funds that track small, medium-sized or large companies
(also known as small-, mid- or large-cap indexes).
Geography. These funds focus on stocks that trade on
foreign exchanges or a combination of international
exchanges.
Business sector or industry. Funds that focus on consumer
goods, technology, health-related businesses, for example.
Asset type. Funds that track domestic and
foreign bonds, commodities, cash.
Market opportunities. Emerging markets or other nascent but
growing sectors for investment.
The main costs to consider:
Investment minimum. The minimum required to
invest in a mutual fund can run as high as a few thousand
dollars. Once you’ve crossed that threshold, most funds
allow investors to add money in smaller increments.
// Self Directed IRA // Retirement Planning // Rollover Account // Social Security // Life Insurance //
IRA/Roth IRA
// Estate Planning // Annuity // Trust Account // Pension Plan // Living Trust // Financial Planning //
- Personal Finance // = Affirmative Action - // - Terminsurance // = Custodial Account - //
Inurancequote = //
IRA/Roth IRA
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- Personal Finance // = Affirmative Action - // - Terminsurance // = Custodial Account - //
Inurancequote = //
Account minimum.
This is different than the investment
minimum. Although a brokerage's account minimum may be $0 (common for customers who open a traditional or Roth
IRA), that doesn’t remove the investment minimum for a particular index fund.
---------------
Expense ratio. This is one of the main costs are subtracted from each fund shareholder’s returns as a percentage of
their overall investment.
Find the expense ratio in the mutual fund’s prospectus or when you call up a quote of a mutual fund on a financial site.
------------
For context, the average annual expense ratio was 0.09% for stock index funds and 0.07% for bond index funds, versus
0.82% for actively managed stock funds and 0.58% for actively managed bond funds, according a 2016 report from
the Investment Company Institute.
Tax-cost ratio. In addition to paying fees, owning the fund may trigger capital gains taxes if held outside tax-
advantaged accounts like a 401(k) or an IRA.
Like the expense ratio, these taxes can take a bite out of investment returns: typically 0.3% of returns when invested
in an index fund, according to a 2014 study by Vanguard founder John Bogle.
Fund tracker Morningstar calculates the tax-cost ratio, which shows the percentage by which a fund’s performance has
been reduced by taxes.
------------
By far, the most popular class of index funds are linked to the S&P 500 — in 2018, nearly 30% of all investor cash in
index funds tracked that benchmark index, according to the Investment Company Institute. Here are some of the best
index funds pegged to the S&P 500.
-----------
VANGUARD 500 INDEX FUND ADMIRAL SHARES (VFIAX) Also known as the Vanguard S&P 500 Index fund, this fund
was founded in 1976 and is the granddaddy of all index funds.
Like the other S&P 500 funds on this list, this fund gives exposure to 500 of the largest U.S. companies, which make
up about 75% of the U.S. stock market’s total value.
Minimum investment: $3,000. Expense ratio: 0.04%.
-------------
SCHWAB S&P 500 INDEX FUND (SWPPX)
As research firm Morningstar notes, this is one of the cheapest and most accessible S&P 500-tracking funds out
there.
Launched in 1997, this Schwab fund charges a scant 0.02% expense ratio and requires no minimum investment, making
it attractive for investors concerned about costs.
Minimum investment: No minimum. Expense ratio: 0.02%.
------------
FIDELITY 500 INDEX FUND (FXAIX)
Founded in 1988 (formerly known as Institutional Premium Class fund),
Fidelity removed this fund's investment minimum last year, so investors with any budget size can get into the low-cost
index fund action.
Minimum investment: No minimum. Expense ratio: 0.015%.
-------------
FIDELITY ZERO LARGE CAP INDEX (FNILX)
In the race for the lowest of the low-cost index funds, this Fidelity fund made news last summer by being among the
first to charge no annual expenses, meaning investors can keep all their cash invested for the long run.
Minimum investment: No minimum. Expense ratio: 0.0%.
----------------
T. ROWE PRICE EQUITY INDEX 500 FUND (PREIX)
Founded in 1990, the fund’s expense ratio is competitive with other providers, but the $2,500 minimum may be steep for
beginning investors.
Minimum investment: $2,500. Expense ratio: 0.2%.
Anyone who has reaped the benefits of an index mutual fund owes a debt of gratitude to John Bogle.
Bogle, founder of the Vanguard Group, died Wednesday at age 89. Even if you’ve never heard his name, if you have a
401(k) or an IRA, you may have profited from his life’s work.
His pioneering efforts to develop and popularize index funds — investment bundles that offer investors an easy way to
diversify their holdings, slash costs and minimize risks — changed individual investing forever.
-------------
'' ' ''Real Estate Investing: Here are more than 15 ways to start investing in real estate to make money...''
------------------
'' Investment Properties Knowledge And Useful Information... Everything To Know About Rental Property For Monthly Cash-flow From A To Z. ...
LEARN MORE...
-----------
''Types of Property Ownership: There are a variety of forms of ownership of
property people need to know about...
---------
''Find 55+ Communities and Senior Living. Affordable Retirement
Communities. Resort Properties For Seniors...
-------------------
''How to Make Money in Real Estate? Types of Real Estate to Invest in... Real Estate Invesing, Active vs Passive??
------------------
'' Ways To Invest In Real Estate Without Buying Property... How to Better Investing in Real Estate With No MORTGAGE?
-------------------
How to Make Money in Real Estate: 10 basic Ways ...
There are many ways to make money in real estate / Investors can realize attractive
returns from multiple income streams in real estate investments'''
-----------------------------
'' Ways to Value a Real Estate Rental Property
Determining the cost of and the return on an investment property are just as important as figuring out its value.''
---------------
'' Income Property - Everything People Need To Know About Rental Property. What are the
best ways to make money in real estate? LEARN MORE..
------------
'' Types of Property Ownership...
There are a variety of forms of ownership of property.----
'' How to Invest In Real Estate without Having to Buy Houses?
-----------
'' Home Warranties, Why Many People Need Them?
Owning a home is a pricey endeavor. It requires attention and upkeep simply because things get old a need to be
replaced...
----------------
'' How to invest and Make Money in Real Estate?…
''Making Money On These Major Types of Properties''
There are many different property types that you can use to make money...
--------------
''General Knowledge For Investing in Commercial Real Estate:
''cash for today or wealth for tomorrow?-
'' Residential Vs. Commercial'' LEARN MORE...
--------------
'' How To Make Money In Real Estate When Buying Investments
It’s often said “You make your money when you buy.” There are many
different strategies you can use to ensure profitability... LEARN MORE''
-----------------
'' How To Make Money In These Real Estate Related Careers...
You don’t need to invest in real estate to begin making money from
it...''LEARN MORE...
-----------
'' Invest In Real Estate With less than $1,000 To Start With. Get Your
Fair Share. Easy And Simple To Build Your Portfolio / Real Estate
Investment Trust Can Help..
Personal Finance: Where are the safe places to put your money in time of financial crises, economic turmoil?
---------------
Finance: Fixed Income Security Investment: Types Of Fixed Income Investments..
---------------
Preferred Stocks vs. Common Stocks. = // Types of Preferred Stocks... Why Do Companies Issue
Preferred Stock? = LEARN MORE HERE...
--------------
Femkonsa Capital: Best Index Funds vs Best ETF"s = Exchange Traded Funds.
LEARN MORE HERE...
-------------------
Millionaire Portfolio: Passive Income - Residual Income - Earned Income - Portfolio Income. HERE ARE
MUCH MORE... = Research & Learning -/
-----------------
Dividend Stocks: List Of Dividend Paying Companies. Quarterly monthly cash-flow = Return On Investment...
LEARN MUCH MORE HERE...
-----------------
Knowledge Center: 101 Ways to Make Money Online We often recommend earning some extra income on the
side .
---------------
Entrepreneur: Business Ideas And Opportunities.
---------------
Economic: Different Types Of Market To Invest in...
--------------
Freeknowledge: Things to Know About Government Bonds & Municipal Bonds...
-------------
Resource Center: Different ways to protect your money…
What to do when we have a market panic, or economic uncertainty...
Last Will And Testament...
What Not to Include When Making a Will...
Ways to Avoid Probate... LEARN MORE HERE...
---------------
Finance: Fixed Income Security Investment: Types Of Fixed Income Investments..
---------------
Preferred Stocks vs. Common Stocks. = // Types of Preferred Stocks... Why Do Companies Issue
Preferred Stock? = LEARN MORE HERE...
--------------
Femkonsa Capital: Best Index Funds vs Best ETF"s = Exchange Traded Funds.
LEARN MORE HERE...
-------------------
Millionaire Portfolio: Passive Income - Residual Income - Earned Income - Portfolio Income. HERE ARE
MUCH MORE... = Research & Learning -/
-----------------
Dividend Stocks: List Of Dividend Paying Companies. Quarterly monthly cash-flow = Return On Investment...
LEARN MUCH MORE HERE...
-----------------
Knowledge Center: 101 Ways to Make Money Online We often recommend earning some extra income on the
side .
---------------
Entrepreneur: Business Ideas And Opportunities.
---------------
Economic: Different Types Of Market To Invest in...
--------------
Freeknowledge: Things to Know About Government Bonds & Municipal Bonds...
-------------
Resource Center: Different ways to protect your money…
What to do when we have a market panic, or economic uncertainty...
Last Will And Testament...
What Not to Include When Making a Will...
Ways to Avoid Probate... LEARN MORE HERE...
''HERE ARE SOME OF THE DOCUMENTS NEEDED WHEN
APPLYING FOR MORTGAG HOME LOAN''
APPLYING FOR MORTGAG HOME LOAN''