Tag: financial planning

A similar folly can be seen with the way some people view real estate, which has many investment subcategories. Studies have shown that while residential realty values are immediately sensitive to interest rates and to recessions and booms, commercial real estate is less sensitive because of long-term leases. Experts agree, though, because of statistical studies, that real estate should be ...

Options as Investments The owner of a call option has paid a dollar or so for the right to buy 100 shares of XYZ corporation’s stock (currently selling at $100/share) from the owner who sold the call option for $102/share at any time within a specified period, such as a year. The buyer knows that in most years the price ...

Three-Tiered Cash Reserves   You don’t need a financial advisor to know you need a cash reserve. But how that is assembled profoundly affects your chances of success. Optimally, you should use three tiers and assemble a special kind of budget in order to estimate how much cash to place in each. You will need this structure regardless of whether you ...