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.
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.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
The financial pyramid implies that:An investment near the top of the pyramid has a higher potential return, but also carries higher risk.Egyptian pharoahs were astute investors.Eating nutritious meals from the "food pyramid" will make you a better investor."Pyramid" or "Ponzi" schemes are good investments.
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.
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.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.
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.
