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Investing Archives - Page 3 of 16 - Wealthspire | Page: 3

When Is the Right Time to Hire a Financial Advisor?

By Blog
Many people think you shouldn’t hire a financial advisor until you have accrued a great deal of assets.  However, that’s not necessarily true. In reality, it’s never too early to start securing your financial future. That said, there are certainly some milestones that strongly indicate it’s time to partner with a financial advisor and begin planning your path to long-term financial freedom. Keep reading to learn five key indicators that may mean it’s time to look for a financial advisor.  1. You have disposable income. Maybe you recently paid off your student debt or car loans and suddenly have more…
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q4 2021 commentary

2021 4th Quarter Commentary: “A Bit of Déjà Vu”

Market Commentary
Recap A reasonable person could sit here at the end of 2021 and have a sense of Groundhog Day – like last year at this time, COVID is dominating headlines and impacting the way we live, work, travel, and socialize. On the positive side, we also have equity markets generating robust performance. In fact, in 2021, the S&P 500 returned greater than 15% for the third straight year – you have to go back to the dot-com boom in the late 90s to see such consecutive performance, and besides then, no other time since 1940. We will recap some of…
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Rate of Return

Financial Dictionary
What Is Rate of Return? The rate of return measures the performance of an investment. Rate of return is calculated by dividing any gain or loss by an investment’s initial cost, or the percentage change of the investment’s value in a given period. Rates of return usually account for any income received from the investment in addition to any realized capital gains. What Is the Internal Rate of Return (IRR)? The internal rate of return is used to estimate the profitability of potential investments. More specifically, IRR is the exact discount rate that makes the net present value (NPV) of…
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Liquidity

Financial Dictionary
What is Liquidity? Liquidity is the ease and speed with which an asset or security can be bought or sold. What Does Liquidity Mean in Finance? Financial liquidity refers to how easily assets can be converted to ready cash without affecting its market price. Assets like stocks and bonds are very liquid and can be converted into cash within days. Larger assets and tangible items such as property and equipment are often not as liquid since they need to be sold before you can use and spend the cash that they are worth, which can take weeks or months. Cash…
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Beneficiary

Financial Dictionary
What Is a Beneficiary? A beneficiary is the person or entity who will receive benefits from a life insurance policy, qualified retirement plan, annuity, trust, or will upon the death of an individual. What Does it Mean When Someone Is the Beneficiary? The beneficiary of a life insurance policy, qualified retirement plan, annuity, trust, or a will is the person or charity that receives the death benefit. A beneficiary can be one person or two or more people or charities. Learn more about what to do if you inherit an IRA. Who Gets Money if There Is No Beneficiary? Generally,…
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Benchmark

Financial Dictionary
What Is a Benchmark in Finance? Financial benchmarking involves running financial analyses in order to compare business practices and the standards of a firm to other firms within the same industry. A benchmark is a standard, or a baseline, that’s used for comparative purposes when assessing a portfolio or mutual fund. What is a Benchmark in a Portfolio? Benchmarks are used to analyze and manage allocation, risk, and the given returns of a portfolio. They can also be used to assess how a portfolio is performing against different market segments. To track the performance of an asset group, companies use…
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Dividend

Financial Dictionary
Dividend Definition A dividend is a portion of a company’s profit paid to common and preferred shareholders. They provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends. How do Dividends Work? Dividends are payments a company makes to its shareholders to share its earnings and can be thought of as rewards paid to shareholders for their investments. There are many reasons why companies pay dividends, including the intent to increase investors’ faith in the company and signal optimism about future growth and earnings. Dividends are…
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Yield Curve

Financial Dictionary
What Is a Yield Curve? A yield curve is the relationship between interest rates and time, and is determined by plotting the yields of bonds with equal credit quality against their maturities. What Does the Yield Curve Tell You? By looking at the yield curve of bonds having equal credit quality but differing maturity dates, the slope of the curve will give you a good idea of the future interest rate changes and economic activity. Yield curves can take the form of three shapes: normal (upward sloping curve), inverted (downward sloping curve), and flat. A normal yield curve shows yields…
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