Category: Equity 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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Family Office Portfolio Allocation Data
When it comes to managing significant wealth, a family office has become the gold standard for the ultra-wealthy. These entities, often private firms established to manage and preserve the wealth of affluent families, are known for their tailored approach for the family’s goals. One of the critical aspects of their operations is asset allocation, a…
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I Just Graduated College, How Do I Build Wealth?
Congratulations on graduating from college! Stepping out into the world can feel overwhelming, but it’s also a great time to start thinking about achieving your goals in life and how to build wealth to achieve those goals, after all money is only a tool for you to live the life you want to live. Thankfully,…
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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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How Do Target Date Retirement Funds Work?
Target date retirement funds are designed to simplify your portfolio savings by automatically adjusting your investment mix as you approach retirement age. These funds typically start with a higher allocation to stocks and gradually shift towards more conservative investments like bonds and cash equivalents. This automatic adjustment helps manage risk and aligns with your changing…
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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,…
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What is Interest Rate Risk and Why is it Important?
Interest rate risk is the possibility that changes in interest rates will negatively affect the value of your assets or portfolio. This risk can impact both borrowers and investors, leading to losses when unexpected fluctuations occur. Imagine you have investments in bonds; if interest rates rise, the value of your bonds might decrease, as newer…
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5 Things to Know About Private Equity Before You Invest
Investing in private equity can be an appealing opportunity for many investors looking to gain exposure to private markets and diversify their portfolio. This type of investment involves committing capital to PE firms that buy and sell privately held companies or purchase public companies and take them private. Understanding the key aspects of private equity…
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Why Exposure to Private Markets Provides Better Portfolio Performance
Investing in private markets can significantly enhance your portfolio performance. Private markets offer diversification and can provide resilience during market downturns. By allocating assets into private equity, private debt, and real estate, you tap into sources of return less correlated to the public markets. Exposure to private markets enables you to optimize performance while managing…