Best Execution – Why It’s Critical

By

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. […]

(more...)

Understanding Tax-Adjusted Yield in Municipal Bonds

By

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 […]

(more...)

In Consideration of Purchasing Carbon Credits

By

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 […]

(more...)

The Power of Starting Young

By

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 […]

(more...)

What is a Financial Hedge?

By

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 […]

(more...)

Rising Interest Rates & Your Bond Portfolio

By

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 […]

(more...)

Merger Arbitrage & Why You Should Care?

By

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 […]

(more...)

Cumulative vs Annual Compound Rates of Return

By

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 […]

(more...)

Financial Advisor Compensation

By

The way in which a financial professional is compensated raises the question of whether they have your best interests in mind. You can judge for yourself by simply looking at the following three dominate models of compensation: Fee-Only Compensation This model minimizes conflicts of interest. A Fee-Only financial advisor only charges for his or her […]

(more...)