The Cost of Carry – How it Relates to Raw Land

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The cost of carry related to raw land refers to the ongoing expenses associated with holding a parcel of land over time. These costs are incurred regardless of whether the land is being actively developed or used. The cost of carry is important for landowners, developers, or investors to consider when evaluating the financial implications […]

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Best Execution – Why It’s Critical

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Best execution, in the context of brokerage transactions, refers to the obligation of brokers to execute client orders in a way that maximizes the value of the trade for the client. This concept ensures that brokers prioritize the client’s interests by striving to obtain the best possible price and overall outcome when executing a trade. […]

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Understanding Tax-Adjusted Yield in Municipal Bonds

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Understanding Tax-Adjusted Yield in Municipal Securities Municipal securities (munis) are debt instruments issued by government entities to fund public projects. A key advantage of munis is that their interest income is often exempt from federal income tax, and sometimes from state and local taxes. The tax-adjusted yield helps investors compare the after-tax return of municipal […]

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In Consideration of Purchasing Carbon Credits

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Investing in marketable carbon credits offers several key opportunities: The information in this post was compiled by S. Zachary Fineberg, CFP(r) Managing Member of Fineberg Wealth Management, LLC, a registered investment advisor. If you would like to schedule a consultation to discuss how Fineberg Wealth Management can help you reach your long-term financial goals, please make contact […]

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The Power of Starting Young

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It is always exciting to see people in their twenties beginning to save for retirement. They are making life so much easier on themselves by harnessing the power of compound interest. The following chart assumes a theoretical 6.5% annual investment return, a $5,500 annual contribution to a Roth IRA, and a retirement age of 65. Using […]

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What is a Financial Hedge?

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A hedge is an investment position intended to offset potential losses/gains that may be incurred as a result of a particular risk or vulnerability. In simple language, a hedge is used to reduce any substantial losses/gains suffered by an investor or institution. Hedging Against Inflation Certain investments are very vulnerable to the erosive effects of inflation. Consider […]

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Rising Interest Rates & Your Bond Portfolio

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Bond prices and interest rates have what is called an inverse relationship. This means that when one goes up the other goes down. To understand why this is the case, let’s look at an example. Suppose you purchased a treasury bond for $1000 that was issued with a 3% yield. At the time you purchased […]

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Merger Arbitrage & Why You Should Care?

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What is Arbitrage? Arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. Example: In the 19th century, the Rothschilds would buy gold in London one day and sell it […]

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Cumulative vs Annual Compound Rates of Return

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Returns can be presented on a cumulative basis or as an annual compound rate. It is critical that investors understand the difference between these two methods of reporting. Cumulative Returns Cumulative returns express the total percentage increase in the value of an investment from the time it was purchased. Example: You purchased XYZ shares 10 […]

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