Category: Credit Investing
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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What Is Credit Default Risk and How Can You Mitigate It In Your Portfolio?
Credit default risk is a crucial concept for anyone involved in lending or investing. It refers to the chance that a borrower won’t be able to make the required payments on their debt obligations. This failure to pay can affect the investor or lender’s financial health and decision-making process. Understanding this risk can help you…
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How to Reach $100K Invested in 3 Years?
The first $100K invested is a b*tch! Reaching $100K invested within three years requires a solid plan and consistent effort but I know you are willing to do it. Start by setting clear financial plan and assessing your current financial health to understand where you stand and what you need to adjust. It’s important to…
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Portfolio Update: September 1st, 2024
I want to share my portfolio to provide a learning experience for others based on my failures and successes, to be transparent about my personal financial interests, and to gain feedback from others. The plan is to make these portfolio updates on a somewhat regular basis. I will include snapshots of my portfolio from Google…
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What is Reinvestment Risk and Why is it Important?
Reinvestment risk is a critical concern for anyone invested in debt securities or who have positions they are going to exit with a high return. It refers to the risk that an investor will not be able to reinvest their income or capital at the same rate of return as their original investment. This risk…
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What is the 60/40 Portfolio Allocation?
A 60/40 portfolio allocation is a common investment strategy where you allocate 60% of your assets to stocks and 40% to bonds. This balance aims to combine the growth potential of stocks with the stability of bonds. Many investors turn to this strategy to mitigate risk while seeking steady returns. This type of portfolio is…
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What Was the Yen Carry Trade that Unwound on August 5th?
The Yen Carry Trade was a popular investment strategy that took advantage of Japan’s low interest rates. Investors borrowed money in Japanese Yen at very low rates and then invested that money in assets with higher returns in other countries. This strategy allowed investors to profit from the difference in interest rates between Japan and…
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The 5 Most Popular Portfolio Allocation Models
Investing your money wisely is key to building wealth over time. Portfolio allocation is an important part of investing, it is deciding how to split your capital between different types of assets. The below portfolio allocation models are incredibly common and are good bases for how you may want to allocate your capital. However, your…
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What Are Municipal Bonds?
If you’re looking into investment options, you’ve likely come across municipal bonds. Municipal bonds are debt securities issued by state and local governments to finance public projects like roads, schools, and hospitals. They are appealing to many investors because of their tax advantages; interest earned on these bonds is often exempt from federal income tax…
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Do I Bonds Fit Into Your Portfolio in 2024? Assessing Inflation-Linked Savings Bonds
Check out our 2025 I Bond post for more insight on inflation and if I Bonds are something you should consider. Assessing the role of I Bonds in your investment portfolio in 2024 is a significant consideration, particularly in an economic climate characterized by uncertainty. These bonds are specifically designed to protect against inflation, which…
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What Are Defensive Investments That I Can Add to My Portfolio?
When market volatility is high, it’s crucial to know how to protect your portfolio. Defensive investments can help you achieve this goal by reducing overall risk. These investment types aim to provide steady returns or reduced volatility even during uncertain times. Defensive investments often include stocks from well-established companies, treasury bonds, ETFs focusing on stability,…