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 […]
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 […]
These days, it is not uncommon to move from employer to employer every few years. During these transitions it can be all too easy to leave your 401(k) or 403(b) with your old employer. Here are three quick and simple reasons why you should stay organized and consider rolling these old accounts into an IRA […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
