Do you find yourself confused about what your max contributions are for your different retirement accounts? It can be hard enough just keeping your accounts straight, let alone trying to track down what the contributions are.
Mutual funds are a mixture of stocks, bonds, and other securities that allow you to pool your money with other investors to create a strategy that may be difficult to get on your own. This portfolio holds a price known as a net asset value (NAV) and is determined by the total value of securities in the portfolio divided by the number of fund’s outstanding (not purchased) shares.
Many of you have probably heard the investment term “stock” or have even purchased stock. But what is a stock? Buying stock, also known as equities or shares, of a company means you are buying into the company for part ownership and dividends on a portion of profits. You are what is called a shareholder.
Are you new to investing and curious what is a bond? A bond is a loan to an entity that you get paid back at the maturity date while collecting interest. They are considered debt because the entity that sold the bond now owes you money. Bonds can be sold by companies and banks, cities, and governments.
What is compounding interest? We’ve created an infographic to teach you what compounding interest is!