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Investing Archives - Wealthspire

Oct 27 2021
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investors just starting out

3 Financial Skills for Investors Who Are Just Starting Out

By Blog
When starting out, knowing how to manage your money can feel daunting. In this post, we will offer simple steps to help you begin taking control of your financial life. #1: Set Priorities and Goals When you get your first paycheck, it is easy to want to spend it all right away, but what are all the things you should be putting your money toward with these limited resources? Strategies to help you save regularly and effectively: Automatically direct a portion of your paycheck to your separate savings account. Studies show that if you don’t see the money, it makes…
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Oct 19 2021
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Q3 2021 commentary

2021 3rd Quarter Commentary: “Updating an Outdated Jigsaw Puzzle”

Market Commentary
In this letter: We take a break from the U.S. to focus on markets overseas by looking at a dated jigsaw puzzle. A discussion of how some rules of thumb need to adjust with changing market composition. China, and how it may not fit several emerging market prerequisites (growth and demographics). Europe and Japan are changing, just very slowly. A few notes on the debt ceiling and inflation. In my experience, kids love a geography puzzle. Give them a jigsaw of the U.S. and it will not take long for them to point to Florida, where the alligators live, Arizona,…
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Oct 14 2021
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fixed income investing rising rate

Fixed Income Investment

Financial Dictionary
What are Fixed Income Investments? A fixed income investment is a fund or portfolio in which bonds are primarily purchased as investments. There is no fixed maturity date and no repayment guarantee. Fixed Income Investment Examples Common fixed income investments include Treasury Bonds, Government & Agency bonds, Municipal Bonds, Corporate Bonds, Mortgage-Backed Securities, Certificates of Deposit (CDs), and Preferred Stock. Can You Lose Money in a Fixed Income Fund? Fixed income funds typically carry less risk and are a good option for a steady source of income. Fixed income funds are great for investors who have less time to recoup…
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Oct 14 2021
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Share Classes

Financial Dictionary
What are Share Classes? Share classes represent ownership in the same fund that charge different fees. This can enable shareholders to choose the type of fee structure that best suits their particular needs. Why Do Stocks Come in Different Classes? A company’s shareholders own a percentage of that company’s total assets and profits, so these shareholders also have voting rights in proportion to the number of shares each individual owns. Share classes help to make sure that voting rights are protected and stay in specific hands. What are Class A and Class B Shares? Companies issue share classes at their…
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Oct 14 2021
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Capital Gains

Financial Dictionary
What are Capital Gains? Capital gains are the difference between a security’s purchase price and its selling price, when the difference is positive and sold at a profit. When it comes to mutual funds, capital gains may also be realized without selling the security as a distribution of gains the fund has made and pays out to shareholders. Capital Gains Calculator To determine capital gains, subtract your basis (what you paid), from the amount realized (how much you sold it for). The difference is your capital gain if it is a positive number, or capital loss if it is negative.…
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Oct 14 2021
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Money Market Fund

Financial Dictionary
What is a Money Market Fund? A money market fund is a mutual fund with investments in high-yield money market instruments such as federal securities, CDs, and commercial paper. The intent is to make such instruments (normally purchased in large denominations by institutions) available indirectly to individuals. Are Money Market Funds a Safe Investment? Money markets are relatively safe because money in these accounts is invested in low-risk, short-term securities. Money market funds are still susceptible to volatility and although it may be lower than other vehicles, there is still some risk involved. How Does a Money Market Fund Work?…
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Oct 14 2021
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stocks covid

Small Cap

Financial Dictionary
What is a Small Cap Stock? Small cap refers to the market capitalization of stocks of companies with market values less than $2 Billion. Company’s stocks are generally referred to as large cap, mid cap, or small cap. What is the Difference Between Small, Mid, and Large Cap? Small cap companies are smaller in size and are generally valued between $300 Million and $2 Billion. Since they are less established than larger companies, they have more room to grow and potential to produce higher returns, but this can also mean more severe effects of volatility in the market. Mid-cap companies…
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Oct 14 2021
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stocks covid

Mid-Cap

Financial Dictionary
What is a Mid-Cap Stock? Mid-cap refers to the market capitalization of stocks of companies with market values between $2 and $10 Billion. Companies and their stocks are generally classified, based on valuation size, as large cap, mid-cap, or small cap. Are Mid-Cap Stocks a Good Investment? Mid-caps are appealing because they split the difference between the risks and rewards of small cap and large cap stocks. They can be a better investment than small cap stocks because they’re historically more financially stable and established. Mid-cap stocks may also be a better investment than large cap because they have more…
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