Determining total return typically utilizes the:Inflation-adjusted annual performance of all mutual-funds.Annual capital gain plus dividend payout of a stock or fund.Math skills learned in college-level calculus courses.Dividend yield on the Dow Jones Industrial Average.
Long-term care insurance:Is only for the very elderly.Can help protect assets from the cost of a nursing home stay.Is not necessary since Medicare always covers long-term care.Is always available regardless of your past health history.
Credit cards:Are a cost effective way of financing investment purchases.Have interest payments that are not tax deductible.Typically have lower interest rates than home equity loans.Often have 3 month grace periods on new purchases.
Gold may be a good investment if:Inflation is expected to increase.You like the color.World peace comes to pass.Foreign governments sell their gold reserves.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
The January Effect:Is the influence on the market of the mutual funds’ performance reported in December.Is another name for the Superbowl anomaly believed to affect stock prices.Is the result of several studies regarding inexplicably higher returns during January.Supports the predictabilityof cyclical prices determined by chaos theory.(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)
If you call your broker to purchase a "round lot" you are:Buying a mutual fund of 100 different stocks.Authorizing him/her to decide how many shares to buy.Negotiating commissions on future purchases and sales.Purchasing 100 shares of a specific stock.
Buying on margin::Precludes the advantage of using leverage.Is not affected by limits on borrowing established by ERISA.Minimizes losses if the price of a security declines.Is possible by borrowing from a broker.
