Resource Center - Investing

Choose from the resource categories below to discover and learn more about personal finance across the topics of budgeting, debt, income, insurance, investing, and retirement.

Investing 101: Introduction

Have you ever wondered how the rich got their wealth and then kept it growing? Do you dream of retiring early (or of being able to retire at all)? Do you know that you should invest, but don't know where to start? If you answered "yes" to any of the above questions, you've come to the right place. In this tutorial we will cover the practice of investing from the ground up. The world of finance can be extremely intimidating, but we firmly believe that the stock market and greater financial world... Read More >>>

Investing 101: What Is Investing

Investing (n-vsting) The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. It's actually pretty simple: investing means putting your money to work for you. Essentially, it's a different way to think about how to make money. Growing up, most of us were taught that you can earn an income only by getting a job and working. And that's exactly what most of us do. There's one big problem with this: if you want more money, you have to... Read More >>>

Investing 101: The Concept Of Compounding

Albert Einstein called compound interest "the greatest mathematical discovery of all time". We think this is true partly because, unlike the trigonometry or calculus you studied back in high school, compounding can be applied to everyday life. The wonder of compounding (sometimes called "compound interest") transforms your working money into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating earnings on an asset's reinvested earnings. To work,... Read More >>>

Investing 101: Knowing Yourself

Investors can learn a lot from the famous Greek maxim inscribed on the Temple of Apollo's Oracle at Delphi: "Know Thyself". In the context of investing, the wise words of the oracle emphasize that success depends on ensuring that your investment strategy fits your personal characteristics. Even though all investors are trying to make money, each one comes from a diverse background and has different needs. It follows that specific investing vehicles and methods are suitable for certain types of... Read More >>>

Investing 101: Preparing For Contradictions

An important fact about investing is that there are no indisputable laws, nor is there one correct way to go about it. Furthermore, within the vast array of different investing styles and strategies, two opposite approaches may both be successful at the same time. One explanation for the appearance of contradictions in investing is that economics and finance are social (or soft) sciences. In a hard science, like physics or chemistry, there are precise measurements and well-defined laws that can... Read More >>>

Investing 101: Types Of Investments

We've already mentioned that there are many ways to invest your money. Of course, to decide which investment vehicles are suitable for you, you need to know their characteristics and why they may be suitable for a particular investing objective. Bonds... Read More >>>

Investing 101: Portfolios And Diversification

It's good to clarify how securities are different from each other, but it's even more important to understand how their different characteristics can work together to accomplish an objective.... Read More >>>

Investing 101: Conclusion

We've introduced many topics in this tutorial: Investing is about making your money work for you. Reinvesting your earnings allows you to take advantage of compounding. Each investor is different in his or her objectives and risk tolerance. There isn't just one strategy that can be used to invest successfully. Each investment vehicle has its own unique characteristics. Diversifying investments in a portfolio helps to manage risk. Together, all these points make up a foundation of knowledge with... Read More >>>

The 8-Part Recipe to Making a Fortune from Your Investments

In the United States, the lifetime earnings of a person with a bachelor's degree stand at roughly $2,100,000.  Overwhelmingly, college graduates marry other college graduates, bringing that figure to $4,200,000.  (From an economic standpoint, it's not a stretch to say that wedding rings are the new social status indicator and marriage patterns are not immune to assortative mating, which has some interesting implications for income inequality.)  As the CEO of your life, how you and your husband... Read More >>>

7 Ways to Destroy Your Wealth and Guarantee You Spend Your Life

Famed investor and businessman Charlie Munger has said one of the best ways to study how to accomplish something is to invert it and look at what not to do. In that spirit, here are seven things you can do to destroy your wealth and guarantee you spend your life in much less affluence than you would have enjoyed. 1. Trade as Frequently as Possible One of the surest ways to squander your wealth is to spend the maximum amount possible on commissions, fees, spreads, and other expenses.... Read More >>>