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February 25, 2011
Fixed Income Strategies

Your investment strategy should be driven by multiple factors, each of which deserve a careful thought. Personal goals, investment objectives, and the ability to assume risks are essential deliberations in constructing a sound investment strategy. Fixed income strategies may not sound appealing to most young people and one of the main reasons is the lack of education and/or information on fixed income securities and investments.

Fixed-income investments are securities that provide regular interest or dividend payments and, in many cases, a return of principal at maturity. Their primary objective is income with limited, if any, growth potential. Remember, the rate of return on a fixed-income investment can be fixed throughout its holding period (e.g., bonds) or can fluctuate with the general movement of interest rates (e.g., Series EE U.S. savings bonds and money market mutual funds). A good example of a variable interest rate is the money market account that you may have.

February 24, 2011
APR vs. APY | What is the Difference Between APY and APR?

APR and APY are two very different terms used in interest calculations. It is very easy to get confused even if you're financial savvy.

APR and APY are two very different terms used in interest calculations. It is very easy to get confused even if you're financial savvy. Remember, not understanding the proper financial language and terms can cost you money. This article attempts to clear up the difference between APR and APY and should come in handy when you shop for a loan or looking to deposit money in a saving or money market account.

February 21, 2011
All About Auto Loans

Understanding Auto Loans
Almost 80% of all new car purchases are financed. So there are lot of players in car loan market. More than likely your dealer will offer you its own loan as well. But remember, even though your car loan is approved at car dealership, it is not issued by them. They just provided a service to connect you to a bank that offers car loans.

Almost 80% of all new car purchases are financed. So there are lot of players in car loan market. More than likely your dealer will offer you its own loan as well. But remember, even though your car loan is approved at car dealership, it is not issued by them. They just provided a service to connect you to a bank that offers car loans.

February 20, 2011
CDs and Money Market Funds

CDs and Money market funds are both considered short term safe investment options. CDs offer a slightly higher yield than Treasury bills because of the slightly higher default risk for a bank but, overall, the likelihood that a large bank will go broke is pretty slim.

On the other hand, Money market mutual funds are a type of mutual fund consisting of high quality, short-term debt instruments such as Treasury bills and short term corporate IOUs. Like all mutual funds, money market mutual fund (MMMF) portfolios are professionally managed and a management fee is charged against fund assets to cover this expense.
 

CDs and Money market funds are both considered short term safe investment options. CDs offer a slightly higher yield than Treasury bills because of the slightly higher default risk for a bank but, overall, the likelihood that a large bank will go broke is pretty slim.