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Total Return is the measure of all appreciation and interest as well as dividends and other distributions from an investment.
Often computations of return will only consider appreciation, and it can be an easy mistake to make when looking at performance data at times. When a stock pays significant and consistent dividends, it needs to be factored in to the computation of total return.
This adds a significant compounding effect to the investment’s overall performance, but if you just looked at the sheets that said it had a 4% return and a 2% dividend yield, you would be missing the most important part. Total return can be calculated for different kinds of investments or an entire portfolio, and is often done on an annual basis once all distributions have been made.
There is no such thing as a mix of assets that is right for everyone. It depends on your age, employment situation...
There is no vesting required for self-employed 401(k) (aka Solo K) plans, since you are the employer and the employee
It is believed that the asset allocation decision is responsible for a majority of an investor’s returns (direct correlation)
Over time, a less diversified approach can hurt an investor’s chance of achieving the long-term desired result for retirement
Treasury notes are government-issued coupon bonds with maturities between 1 and 10 years
A common stock is the one you’re most familiar with - having a share of ownership in a company
Companies in the Materials sector have business interests in raw materials, such as steel, aluminum, and iron ore
Hedging against future price risk was the main reason Futures contracts came into being. Buying a hedge is a Forward...
Sidechains are blockchains which handle assets off of a main blockchain and are able to return them to the main blockchain at a future date
Ripple’s XRP has the third-largest market cap in the cryptocurrency world, but what gives it value?