People fret about rising volatility but are not prepared to handle it. Having a financial plan tailor-made to achieve your goals and objectives will help and also provide an opportunity to earn a better return.Continue reading
Low or zero fee funds are good investment options provided their returns net of fees is higher than that of their peers.Continue reading
A typical retirement plan may have anywhere between 15 to 30 investment options. In certain cases, the list may contain 100+ options. Honestly, the longer the list, the harder it is for employees to make a sensible choice. Keeping a tab and trying to understand so many options is not an easy task and requires a lot of time. And that dilemma sometimes results in inaction and you may end up parking your hard earned money in assets that don’t offer a good return or charge higher fees.
Let’s take an example of a retirement plan that has 15 options. A typical line up consists of 7-8 equity funds,4-5 bonds and 1-2 options focused on specific assets like real estate, oil & gas etc.
Let’s dig deeper into equity options. The first question in your mind may be ‘why 7-8 equity funds?’ The idea is to offer choice and diversification so that you don’t pull all your eggs in one basket.
2017 was undoubtedly the year of Bitcoin. The price of bitcoin rose from less than $1,000 to 14,822 as of Dec 28, 2017, resulting in 15 times plus return in just one year. Bitcoin is the brainchild of Satoshi Nakamoto, the top cryptocurrency in the world and dominates the cryptocurrency trade per CoinMarketCap. There is significant interest from Asian countries, especially neighbors of the famous Rocket Man – Japan, South Korea and Vietnam, accounted for 80% trading of Bitcoin in Nov 2017. The market cap of all cryptocurrency was $576B as of January 16, 2018, and Winklevoss twins of Facebook fame became first bitcoin billionaires by investing a portion of their Facebook settlement in Bitcoin. The price of Bitcoin remains volatile and may go up and down 20% in a matter of hours. There are many success stories of Bitcoin millionaires and billionaires and now everyone wants to have a piece of the action.Continue reading