A debt-to-income ratio is the comparison of one’s gross monthly income to what one spends every month. Generally, the higher the percentage, the less likely an individual will be able to afford repayment for any debts incurred. For example, if your gross monthly income is $5,000 and you spend $4,500 every month, your debt-to-income ratio Read More
COVID-19 has everyone on edge. The pandemic has forced businesses and schools to close, and it seems to be spreading at an alarming rate. This also means that their student loan payments are deferred for some people. If you’re one of those people, it’s essential to understand you can make the best decision for your Read More
Many people have different views on the right time to start investing. Some people might wait until they have a good-paying job. Others maybe had parents who invested early for them. There are a few things to consider when you invest in your or your child’s future. Do you have an emergency fund? An emergency Read More
A major concern of most people is where to invest the retirement savings. Nobody wants to put their savings at risk and there are concerns about fluctuations in the stock market. Many people are uncomfortable investing in the stock market because of the higher risk associated with stocks. However, you should consider the following two Read More
One of the major components of the personal financial planning process is Retirement Planning. After all, we all want to have enough money so that we can retire comfortably and not all of us will win the lottery. In addition to having enough money to be able to retire, many of us also want to Read More
As I’ve been doing research to better understand benchmarking and what individuals should and should not do, it was interesting to me how individuals did this. My methodology was very unscientific, largely based on conversations that I’ve had with acquaintances and friends, but also looking at what people ask on forums like Reddit in the Read More
Sharpe Index – The Sharpe Index is a measure with which you may measure the performance of your portfolio over a given period. The important aspect of the Sharpe Index is that this performance indicator takes into consideration the risk of the portfolio. In order to use the Sharpe Index, you must know three things; Read More
A Dividend Reinvestment Plan (DRIP) is a program or plan that allows you to buy stock directly from that company. You will receive dividends as you normally would, with the exception that rather than receiving a cash dividend, the company will give you stock of an equal value to the cash that you would have Read More
Over the last several years, ETFs (Exchange Traded Funds) have emerged as a very serious alternative to the mutual fund. Investing in an ETF offers many of the advantages that mutual fund offers, such as a diversified basket of assets that closely track a market index. The ETF and the mutual fund are also similar Read More
Those of us who are monetarily-minded tend to make a living managing funds. Whether you work as an accountant for a small business or for a hedge fund manager, you likely spend time handling wealth in some form or another. When managing this money, you will frequently need to supply business reports to the owner, Read More