Author: PortfolioLiteracy
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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How to Grow a 3-Fund Dividend Portfolio?
Building a 3-fund dividend portfolio offers a straightforward path to generating dividend income while maintaining simplicity in your investment strategy. By carefully selecting three complementary funds, you can create a balanced approach that provides regular dividend payments without requiring constant portfolio adjustments. Creating a successful 3-fund dividend portfolio requires focusing on total return potential rather…
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Boglehead 3-Fund Portfolio vs 4-Fund Portfolio
Investors seeking straightforward, low-cost investment strategies often encounter the Boglehead approach, inspired by Vanguard founder Jack Bogle’s principles of simplicity and diversification. The classic Three-Fund Portfolio consists of domestic stocks, international stocks, and U.S. bonds—creating a globally diversified investment mix with minimal complexity. Adding a fourth fund, typically international bonds or TIPS, can potentially enhance…
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Building a Dividend Portfolio with Private Credit
Many dividend investors build their portfolio for continued income growth to achieve their financial goals long term. By incorporating private credit, you can potentially enhance this strategy through diversification of asset classes and return structure. Private credit can offer higher yields and diversified returns, benefiting dividend investors seeking a stable income stream long term. When…
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What are US Series EE Bonds?
Series EE Bonds are a non-marketable, interest-bearing savings bonds issued by the U.S. government. When you purchase this type of bond, you’re essentially lending money to the federal government, which promises to pay you back with interest. These bonds are guaranteed to at least double in value when held to their full term, making them…
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6 Defensive Assets for Your Portfolio in 2025
As economic uncertainties increase, preparing your portfolio for potential market downturns becomes essential. Recent market volatility has already wiped out $4 trillion in stock market value, highlighting the importance of adding defensive assets to your portfolio in 2025. Knowing which assets can provide stability during economic turbulence can help protect your wealth and potentially offer…
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What Does HENRY mean in Personal Finance?
Ever wondered why some people with impressive salaries still don’t feel financially secure? Enter the HENRY – an acronym for “High Earner, Not Rich Yet” – a term describing professionals who make substantial incomes but haven’t accumulated significant wealth yet. These individuals typically earn six-figure salaries but find much of their income allocated to expenses…
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3 Reasons Why Illiquid Assets Can Be Good for Your Overall Portfolio
In today’s investment landscape, portfolio diversification extends beyond traditional stocks and bonds. Many investors overlook the potential benefits of adding illiquid assets in private markets to their financial strategy. These investments, which cannot be quickly converted to cash without potential loss of value, offer unique advantages worth considering. Illiquid assets can help diversify your portfolio…
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How to Understand Credit Spreads in Bonds?
In the complex world of financial markets, credit spreads serve as crucial indicators of risk perception and economic health. When you examine credit spreads, you’re looking at the difference in yield between two debt securities with similar maturity dates but different credit ratings. Credit spreads represent the additional yield investors demand as compensation for taking…
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What Is the Difference Between Investment Grade and High-Yield Bonds?
Bonds serve as essential tools in investment portfolios, offering steady income streams and potential returns. Investment-grade bonds are issued by financially stable companies with high credit ratings and offer lower yields but greater security, while high-yield bonds come from companies with lower credit ratings and provide higher potential returns with increased risk. Investment-grade bonds typically…
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What is Private Credit and How Can I Add It to My Portfolio?
Private credit became a hot topic in recent years as the Fed started rate hikes in March of 2022. Private credit involves investments in non-bank lending to private companies. Private credit can provide steady returns and reduce overall risk through varied investment vehicles however the asset class comes with its own risks. Private credit can…