mutual funds – Sarah Long http://sarahlong.org/ Tue, 19 Apr 2022 14:02:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sarahlong.org/wp-content/uploads/2021/10/icon-44-120x120.png mutual funds – Sarah Long http://sarahlong.org/ 32 32 What type of brokerage account is right for you? https://sarahlong.org/what-type-of-brokerage-account-is-right-for-you/ Thu, 17 Feb 2022 20:26:15 +0000 https://sarahlong.org/what-type-of-brokerage-account-is-right-for-you/ A broker, also known as a brokerage, is a company that connects buyers and sellers of investment vehicles such as stocks and bonds. A brokerage account is often where an investor keeps assets. In general, there are three types to choose from. The type you choose depends on your needs and preferences. Key points to […]]]>

A broker, also known as a brokerage, is a company that connects buyers and sellers of investment vehicles such as stocks and bonds. A brokerage account is often where an investor keeps assets. In general, there are three types to choose from. The type you choose depends on your needs and preferences.

Key points to remember

  • A brokerage account is an investor’s financial account with a licensed brokerage firm to buy and sell securities.
  • Different companies appeal to different investors based on experience, desire for support, and asset levels.
  • Both traditional and online self-directed programs are popular with a variety of investors, especially those who are comfortable researching and interacting with an interface rather than a person.
  • Human advisors are a better option for those who prefer to interact more directly with a financial professional.
  • A robo-advisor automates investments and uses technology to manage your portfolio.

Quick history of brokerages

Prior to the mid-20th century, access to stock and bond markets was limited to those who had enough money to invest and use the services of a human broker.

In the 1970s and 1980s, “discount” brokerage firms such as Vanguard and Charles Schwab emerged. They were willing to go after a less affluent clientele because their business models were designed around investor volume.

Online brokers such as E*TRADE, FOREX.com and Ameritrade (now TD Ameritrade, under Charles Schwab) thrived by seizing the opportunity created by the Internet at the turn of the century. New technology has reduced costs and allowed them to expand the discount brokerage model by reducing commissions and minimum balances.

Brokerage houses exist to provide public access to exchanges. Without brokers, investing as it is today would not exist.

The rise of self-directed investing

Online brokerage accounts brought in the self-directed investor. This investor researches investments and chooses which stocks and bonds to buy for their portfolio.

Additionally, a new development in recent years has been the advent of the robo-advisor. These automated software platforms, often available as mobile apps, support almost all of your investment decisions at reduced costs.

Arguably the first robo-advisor – and the first to offer cryptocurrency wallets – Betterment was launched in 2010 after the Great Recession. Since then, robo-advising has seen exponential growth in adoption and a wave of startups and existing brokers adding a robo-advisor arm.

A wide range of traditional, discount and online self-directed brokerage platforms are available, each with advantages and disadvantages.

Human brokers and financial advisors

Some people prefer to entrust their finances to a human. If that’s you, then a traditional advisor may be a better fit than a robo-advisor. Human brokers and financial advisors have been around since the beginning of modern stock markets, and they have carved out a place for themselves in today’s competitive landscape by catering to investors with higher net worth or those who prefer the human interaction.

Good financial advisors build and monitor investment portfolios and offer advice on many aspects of their clients’ financial lives. They also provide ancillary services such as insurance, estate planning, accounting services and lines of credit.

Clients of these brokers can expect to pay 1% or more of their assets under management to the advisor; sometimes they can pay up to $50 per trade for individual trades. Many advisors say these fees are well worth the additional value they provide, such as stock picking for their clients’ portfolios, access to unique products and offers, or building comprehensive financial plans.

Many advisors are available by phone or email and are quite responsive. They can also meet their clients in person when needed.

When comparing brokers, pay attention to what the advisor is telling you. The brokerage may require them to push pre-packaged investments, funds, or financial plans; if so, be sure to educate yourself on developing a plan that meets your needs.

Also pay attention to fees. If they charge more than 1%, ask why and judge for yourself if the extra cost is worth it. Professional certifications such as the CFP (Certified Financial Planner) or CFA (Certified Financial Analyst) designation show that your broker has been trained and has passed a series of rigorous examinations related to financial markets and planning.

You can also use FINRA’s BrokerCheck tool to see if their broker has had any regulatory complaints or ethics violations.

Online self-directed brokerage accounts

Online self-managed platforms include E*TRADE, TD Ameritrade, Robinhood and many more. Be sure to check with your bank – you may already have access to a self-directed online brokerage account.

For the most part, these platforms leave it up to you to determine which investments are best, but they usually offer a suite of research and analysis tools. Many provide expert recommendations and insights to help you make informed decisions. You are then on your own to execute the trades to build your portfolio through their website or mobile app.

Human advisors charge higher fees than robo-advisors or platforms that facilitate self-directed investing – platforms tend to charge fees per trade.

These platforms charge a commission per trade per stock trade and a surcharge per options contract. Plus, they allow you to trade on margin and create options strategies. You can also invest in mutual funds, individual stocks, currencies (forex) and exchange-traded funds (ETFs).

Online brokers are best for the self-directed investor who knows the markets or does research to choose a portfolio best suited to their goals. If you only trade a few times a year, you might want to pay a little more per trade to get access to better research and analytics. If you’re a day trader, you’ll probably want to consider a site that offers its most active users free trades.

Robo-advisors

Robo-advisors automate investments and use technology to manage your portfolio. Since the launch of Betterment in 2010, there has been a proliferation of startups and existing financial firms offering this algorithmic trading service.

Unlike the trading algorithms that power the high-frequency trading desks (HFTs) of hedge funds and banks, robo-advisors are likely to grow your money using low-cost index-linked ETFs. In fact, the convergence of ultra-low-fee ETFs with low-cost technology solutions available on mobile platforms makes robo-advising possible.

You can now invest as little as $1 on select platforms for 0.15% per year in fees. Many sites do not charge consulting fees, but they do charge for optional add-on services.

Before robo-advisors, if you only had a few hundred or thousand dollars to invest, you had to go online to a self-managed platform. Now you can invest $200 or $2,000 without having to do investment research, choose individual stocks, or worry about rebalancing your portfolio.

Algorithm-based robo-advisors aim to place you in an efficient and diversified passive portfolio. Many of these platforms will even tax-optimize your portfolios through tax-loss harvesting, a process by which an investor sells losing positions to offset the capital gains generated by winning positions. The algorithms themselves are a proprietary trade secret of the robo-advisors.

Robo-advisors are ideal for new or young investors who don’t have much to invest. These platforms are also suitable for people who follow passive investment strategies because your robo-advisor develops a portfolio of index ETFs for you.

Robo-advisors also shine for long-term investors who lack the time or desire to research and find the ETFs that suit their investment needs and strategy.

If you are a more sophisticated investor or trader who needs margin, options trading, and technical charting, a robo-advisor may not meet your needs.

But robo-advisors are definitely not for everyone. Many brokerages are adapting their robo-advisors to allow for greater customization in their portfolio choices. However, this defeats the purpose of these products: to build and maintain a growing portfolio.

If you choose a robo-advisor, the main factors to consider are cost, reputation, and added services. Be sure to keep an eye on the cost of additional services: some are free, but others may incur additional charges.

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3 Annoying Brokerage Account Fees to Avoid https://sarahlong.org/3-annoying-brokerage-account-fees-to-avoid/ Tue, 25 Jan 2022 12:00:26 +0000 https://sarahlong.org/3-annoying-brokerage-account-fees-to-avoid/ Image source: Getty Images Any money you have set aside for emergencies or expenses should be deposited in a savings account. But if you have extra funds that you don’t think you need right away, then investing that money is a good bet. In this way, you will have the opportunity to grow this money […]]]>

Image source: Getty Images

Any money you have set aside for emergencies or expenses should be deposited in a savings account. But if you have extra funds that you don’t think you need right away, then investing that money is a good bet. In this way, you will have the opportunity to grow this money into a larger sum. However, you should keep in mind that investing comes with inherent risks and it is possible to end up with less money than you started with.

If you’re new to investing, you may be tasked with finding the right brokerage account. With all the choices available to you, this is no small feat.

But there’s a relatively easy way to narrow your options, and it focuses on brokerage accounts that don’t charge pesky fees that can eat away at your returns. Here are three specific fees you should do your best to avoid.

1. Trading fees

Some people open a brokerage account and buy or sell stocks every few months. Or, you might end up buying or selling stocks several times a week. This is something you should have the freedom to do without being held back by expensive fees. It is definitely beneficial to look for a brokerage account with commission-free trading so that you are not be charged each time you make a move.

The good news is that commission-free stock trading is pretty much the norm these days. And while you may be charged fees for buying and selling shares of mutual funds or ETFs, some brokerages also offer no-fee options for these assets. It pays to dig in and see what choices you have.

2. Maintenance costs

You may be familiar with account maintenance fees for checking accounts. Unfortunately, some brokerage accounts also charge these fees. Fortunately, however, these fees have become less common in recent years. If you sign up with a well-known brokerage, you will usually be able to avoid them.

3. Inactivity Fees

You may go through periods where you transact daily in your brokerage account. And you may also have periods where you want to sit back and leave your wallet alone for months. The latter should be an option you can explore without penalty. That’s why it pays to avoid a brokerage account that charges inactivity fees for not making trades in your wallet.

If you have a brokerage account that charges inactivity fees and you intend to adopt a “buy and hold” strategy (where you load up quality investments and hold them for many years), you risk to lose money due to inactivity. Luckily, there are plenty of brokerages out there that don’t charge idle fees, so all you need to do is research them.

The less money you lose in brokerage account fees, the more money you have to earn and keep. It pays to avoid these specific fees when looking for a new brokerage account. And if you already have a brokerage account, take a look and see if any of these fees apply. If they do, it might be time to move your money elsewhere.

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We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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4 tips for opening your first brokerage account https://sarahlong.org/4-tips-for-opening-your-first-brokerage-account/ Fri, 21 Jan 2022 11:00:32 +0000 https://sarahlong.org/4-tips-for-opening-your-first-brokerage-account/ Image source: Getty Images The money you have in a savings account may not increase very much. That’s because savings accounts don’t always earn the most interest. On the other hand, if you were to invest the money you don’t need for emergencies or short-term goals, you will have the opportunity to grow it into […]]]>

Image source: Getty Images

The money you have in a savings account may not increase very much. That’s because savings accounts don’t always earn the most interest. On the other hand, if you were to invest the money you don’t need for emergencies or short-term goals, you will have the opportunity to grow it into a much larger sum.

If you’ve never used a brokerage account before, you might be overwhelmed with the choices available to you. Here are four tips to consider when making your decision.

1. Determine what you want to invest in

Deciding which assets you would like to own will help you find the right brokerage. Some brokerage accounts, for example, do not allow you to buy cryptocurrency. If it’s something you want to invest in, you’ll want to find an account that allows it. Otherwise, if you’re sure to stick with stocks, bonds, and mutual funds, it doesn’t matter that a given brokerage doesn’t offer crypto.

2. Determine what you want to invest in

If you’re investing money that you want unrestricted access to, it pays to put your money in a traditional brokerage account. But if your investment goal is to build a nest egg for retirement, you might want to open an IRA.

IRAs come in two varieties – traditional and Roth. Both choices come with their own tax breaks. Traditional IRAs allow you to make contributions with non-taxable dollars, so if you put $5,000 into one, that’s $5,000 of income that the IRS may not tax you on, depending on your income.

Meanwhile, Roth IRAs allow for tax-free investment gains and withdrawals. Both accounts, however, require you to leave your money untapped until age 59.5, so if you think you’ll want the option to cash out your assets sooner, then an IRA may not be the place. Good choice.

3. Determine how much you need to invest

Many brokerages don’t have minimum balance requirements, but some charge fees if your balance gets too low. Of course, you can always avoid these brokerages altogether, but some may offer other benefits that may make them useful. Calculate how much money you have to open a brokerage account and how much you intend to keep putting into that account.

4. Pay attention to fees – and avoid as many as possible

Some brokerage accounts charge a fee each time you make a trade. For the most part, these are accounts you should try to avoid, as these fees could pile up and eat away at your returns. There are so many options today for commission-free trading that it rarely makes sense to get charged in this area.

That said, some brokerages charge other fees, such as an inactivity fee for leaving your account inactive for too long. Learn about the different fees and compare your choices.

Opening your first brokerage account doesn’t have to be a daunting task. Use these four tips to make the process smoother so you can launch your investing career.

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Business News | Stock market and stock market news | Financial news https://sarahlong.org/business-news-stock-market-and-stock-market-news-financial-news/ Mon, 03 Jan 2022 04:07:07 +0000 https://sarahlong.org/business-news-stock-market-and-stock-market-news-financial-news/ Search for quotes, news, net asset values ​​of mutual funds Vodafone idea INE669E01016, IDEA, 532822 Suzlon Energy INE040H01021, SUZLON, 532667 Tata Engines INE155A01022, TATAMOTORS, 500570 Yes Bank INE528G01035, OUIBANQUE, 532648 RBL Bank INE976G01028, BANK RBL, 540065 Search for quotes, news, net asset values ​​of mutual funds Vodafone idea INE669E01016, IDEA, 532822 Suzlon Energy INE040H01021, SUZLON, […]]]>















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On the daily chart, the index continues to rise, forming a series of higher ups and downs. Any pullback rally to the 17,400-17,300 levels should be used as a buying opportunity with a 17,150 stop loss rising to the 17,800-18,000 levels, said Rajesh Palviya of Axis Securities.

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Claire 43 29-12 45.70 44.00 2.33 47.10 9.53
Wherrelz IT 171 29-12 179.90 177.20 3.63 205.10 19.94

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Brandbucket Med See profile

SME IPO 55 8.25 0 20-12 23-12

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Brokerage Account vs IRA: What’s the Difference? https://sarahlong.org/brokerage-account-vs-ira-whats-the-difference/ Mon, 27 Dec 2021 19:53:23 +0000 https://sarahlong.org/brokerage-account-vs-ira-whats-the-difference/ If you are new to investing, you may want to compare brokerage accounts to IRA accounts to decide where to invest. After all, you can invest in stocks and other securities in either account, so what’s the difference? Generally speaking, brokerage accounts are taxable accounts that allow you to buy and sell various investments whenever […]]]>


If you are new to investing, you may want to compare brokerage accounts to IRA accounts to decide where to invest. After all, you can invest in stocks and other securities in either account, so what’s the difference?

Generally speaking, brokerage accounts are taxable accounts that allow you to buy and sell various investments whenever you want, with no contribution limits or penalties for withdrawals. On the flip side, IRAs are tax-deferred or non-taxable accounts (depending on what type of IRA you choose), but there are strict contribution limits and withdrawals can result in a penalty. Here’s a more in-depth look at brokerage accounts and IRAs, with tips to help you decide where to put your hard-earned money.

Key points to remember

  • Brokerage accounts are taxable investment accounts through which you can buy and sell stocks and other securities.
  • IRAs are designed for retirement savings and allow tax-free or tax-deferred growth on the investments you hold in the account.
  • Unlike brokerage accounts, IRAs have strict contribution limits, and withdrawals can result in a penalty.
  • Brokerage accounts and IRAs are taxed differently, which can be a deciding factor when choosing an account.

Brokerage Account vs IRA: An Overview

Brokerage accounts and IRAs are investment accounts that allow you to buy and sell stocks, ETFs, bonds, mutual funds, real estate investment trusts (REITs) and other securities. .

Generally, investors use brokerage accounts for day trading, long-term investments, and to save for short-term financial goals, such as buying a house or a car. Meanwhile, IRAs offer investors a tax-efficient way to save for retirement.

Having both types of accounts can be a smart financial decision. This way, you can simultaneously enjoy the flexibility of the brokerage account and the tax advantages of the IRA. Financial planners often recommend investing in this order:

  1. If you have a 401 (k) plan, contribute enough to get the business first, it’s like getting free money.
  2. Maximize your IRAs to take advantage of tax benefits and the power of compounding.
  3. Invest through your brokerage account.

What is a brokerage account?

As noted, a brokerage account is a taxable account that allows you to buy and sell stocks and other securities. You can buy and sell securities freely, with no cap on the amount you invest, and you can sell your investments at any time without penalty. In terms of tax treatment, you’ll pay taxes on interest, dividend, and capital gains income in the tax year you earn it.

There are dozens of brokerage firms out there, and choosing the best broker for you depends on your investing style, preferred investments, and what features you want in a trading platform. Once you’ve chosen a brokerage firm, you can open and fund an account online, usually within minutes.

What is an IRA?

An Individual Retirement Account, or IRA, is a tax-advantaged investment account designed for retirement savings. Investment choices are limited compared to brokerage accounts (for example, you can’t hold bare options), but income grows tax-free or tax-deferred, depending on whether you have a Roth or a Traditional IRA.

Unlike brokerage accounts, IRAs have strict contribution limits. For the 2021 and 2022 tax years, you can contribute up to $ 6,000 to your IRA accounts, or $ 7,000 if you are 50 or older.

Roth IRAs (but not traditional IRAs) also have income limits: for 2021, you can only contribute the full amount if your income is less than $ 125,000 for single filers or $ 198,000 if you’re married. and file jointly. These limits increase for the 2022 tax year when the elimination begins at $ 129,000 for single filers and $ 204,000 for married couples filing jointly.

In general, withdrawals made before the age of 59.5 can trigger a 10% penalty with either type of IRA, although there are some exceptions to this rule. However, you can withdraw your Roth IRA contributions at any time, for any reason, tax-free and without penalty.

You can open an IRA with a bank or brokerage firm. Keep in mind that an IRA is not an investment in itself, it is an account that holds the investments you choose. You can choose from a variety of investments, including stocks, bonds, mutual funds, ETFs, REITs, and even real estate.

How are brokerage accounts and IRAs taxed?

No one would say that choosing profitable investments is an essential part of investing and growing wealth. However, investing in a tax-efficient way is just as important, because it allows you to keep your earnings as much as possible. Depending on the type of account you have, dividend, interest, and capital gains income may or may not be taxable, which brings us to a key difference between brokerage accounts and IRAs.

Taxes on brokerage accounts

Brokerage accounts are taxable investment accounts. If you earn money because your investments earn interest or dividends, or because your investments increase in value, you will owe tax on that income. Tax liability depends on the source of income:

  • The interest. You can earn interest on investments such as bonds, certificates of deposit (CDs) or on uninvested cash you hold in the account. In general, interest income is taxed like ordinary income, with two exceptions: U.S. Treasuries are not subject to state or local income tax, and municipal bonds are generally exempt from tax. ‘federal taxes (and sometimes state and local taxes as well).
  • Dividends. Dividends are your share of a company’s profits. There are two types of dividends and each has a specific tax treatment. Eligible dividends, which represent most of the dividends paid to shareholders by public companies, are taxed at the lower long-term capital gains rate. Unqualified dividends, which generally apply to REITs, Master Limited Partnerships (MLPs) and Business Development Corporations (BDCs), are taxed at the highest regular tax rate.
  • Capital gains. If you sell an investment for a profit, you will owe tax on that gain, but the amount of tax depends on how long you have held the investment. Gains on investments you have held for less than a year are considered short-term capital gains and taxed as ordinary income. In contrast, gains on investments that you have held for more than a year are taxed at the more favorable long-term capital gains rate.

Taxes on IRA accounts

Contributions to a traditional IRA are made with pre-tax dollars and may be tax deductible, depending on your income and whether you or your spouse is covered by a workplace pension plan. Roth IRA contributions are made in after-tax dollars, so there is no tax relief in the year you make the contribution. Instead, the tax benefit comes in retirement, when your withdrawals are tax-free.

Income from IRAs increases tax-free or tax-deferred, depending on the type of IRA you have:

  • Roth IRA. There is no initial tax relief, so contributions do not reduce your taxable income. But withdrawals eligible for retirement are tax-free, and you can withdraw your contributions at any time, for any reason, without penalty. And, unlike traditional IRAs, there are no minimum required distributions (RMDs) for Roth IRAs.
  • Traditional IRA. You may be able to deduct traditional IRA contributions in the year you make them, which can reduce your taxable income (and your tax liability). But withdrawals are subject to income tax, and early withdrawals usually carry a 10% penalty. You can avoid the penalty (but not the tax) in certain circumstances, such as using the money to pay for a first-time buyer’s qualifying expenses.

Should I open an IRA at a bank or brokerage firm?

While you can open an IRA at a bank or brokerage firm, you will have more investment options and higher potential income with the latter. Banks tend to offer very limited, low return investment options, such as savings accounts and certificates of deposit (CDs). These low-risk investments may appeal to some retirement savers, but they won’t allow your nest egg to grow substantially, even over the long term. You will usually find a much wider selection of investments and greater growth potential if you open an IRA on a brokerage account.

Is there a minimum to open a brokerage account?

It depends on the brokerage firm. Many brokers today offer very low minimum deposits (eg, even zero) to start with. Of course, you will need to deposit at least $ 2,000 if you want to enable margin trading.

Is a Roth or a Traditional IRA Better?

With a Roth IRA, contributions are not tax deductible, but withdrawals eligible for retirement are tax-exempt (even for income). Traditional IRA contributions are tax deductible, so you could save money at tax time for the year you contribute. But you will owe income tax on withdrawals at retirement, including all that growth. In general, you’re better off with a Traditional IRA if you expect to be in a lower tax bracket when you retire than you are today. If you think you will be in the same or higher tax bracket when you retire, a Roth may be the best choice because you will get your tax bill at your current and lower tax rate.

The bottom line

Financial planners recommend having both accounts, if possible. You can use a brokerage account for day trading, long-term investing, and for saving for short-term financial goals, while an IRA is for retirement savings. Brokerage accounts offer more flexibility and there are no limits on contributions, withdrawals or income to fund one. IRAs, on the other hand, have lower annual contribution limits, withdrawals may incur a penalty, and if your income is too high, you may not be able to contribute.


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Make these 3 brokerage account movements before the end of the year https://sarahlong.org/make-these-3-brokerage-account-movements-before-the-end-of-the-year/ https://sarahlong.org/make-these-3-brokerage-account-movements-before-the-end-of-the-year/#respond Mon, 08 Nov 2021 13:00:22 +0000 https://sarahlong.org/make-these-3-brokerage-account-movements-before-the-end-of-the-year/ Investing in a brokerage account is a great way to turn the money you don’t use right away into more. These days, many brokerage accounts offer a range of investment options, from stocks to mutual funds to cryptocurrency. If you have money in a brokerage account, it is important to check it several times a […]]]>


Investing in a brokerage account is a great way to turn the money you don’t use right away into more. These days, many brokerage accounts offer a range of investment options, from stocks to mutual funds to cryptocurrency.

If you have money in a brokerage account, it is important to check it several times a year. In fact, now is a great time to take a closer look at your brokerage account. Here are three movements to focus on in particular.

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1. Check your investment mix

It is important to maintain a diverse mix of investments in your brokerage account. If you are too invested in a single segment of the market and that segment takes a hit, you could end up losing money if you have to sell. Having a diversified portfolio can also facilitate wealth growth over time, as you venture into different industries, each of which has the potential to gain value.

But sometimes you can start with a diverse mix of investments and end up with a less diverse one. How? ‘Or’ What? Since the value of stocks fluctuates over time, it is possible that the stocks in your portfolio will gain or lose in value to the point that your investments are less balanced.

Here is an example. Suppose you started with a portfolio of 20% tech stocks. If these tech stocks gain a lot of value in any given year, they could end up making up 50% of your portfolio on time.

Now you might think that’s not a bad thing as it means this segment has seen huge growth. But it also means that your portfolio is now heavily invested in a single segment, which can be risky. In this case, you would want to move some investments for a more even mixture. It’s a good thing to have in your wallet before the end of the year.

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2. Check if the stocks you hold are underperforming

When the stock market as a whole is going through a rough patch, it is possible that all of your stocks will lose value. If the stock market is doing well and only one stock in your portfolio is losing money, that could be a red flag that it’s time to get rid of that specific investment. If you are planning to sell a stock at a loss, it is best to do so before the end of 2021.

Why? Investment losses in a brokerage account can help offset investment gains. If you sell a stock and incur a loss of $ 1,000, but you also sell a stock and make a profit of $ 1,000, you would normally have to pay IRS taxes on that profit. But since that $ 1,000 loss may offset your gain, you don’t owe the IRS anything.

In addition, if you have no gain in your brokerage account, you can use up to $ 3,000 in investment losses each year to offset regular income. If you sell your investment losing this year, you will be able to offset some of that year’s income. Wait until 2022 to incur this loss, and you will have to wait to take advantage of this tax break.

3. See if there is a better account for you.

If your brokerage account has expensive fees, such as fees to complete transactions or inactivity fees for not transacting, maybe it’s time to move your money somewhere else. There are plenty of brokerage options out there that don’t impose these nagging fees, so take some time to do your research if the fees are costing you money.

The end of the year is a great time to take stock, and that includes digging into your brokerage account. It pays to take these steps in the coming weeks so that you can start 2022 on a high note.


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Why you should review your brokerage account every 3 months https://sarahlong.org/why-you-should-review-your-brokerage-account-every-3-months/ https://sarahlong.org/why-you-should-review-your-brokerage-account-every-3-months/#respond Sun, 31 Oct 2021 10:32:39 +0000 https://sarahlong.org/why-you-should-review-your-brokerage-account-every-3-months/ One of the smartest ways to grow your wealth is by investing the money you don’t need to pay your bills or fund emergency funds. In fact, it’s a good idea to open a brokerage account and start buying stocks, mutual funds, and any other investment that matches your financial goals and appetite for risk. […]]]>


One of the smartest ways to grow your wealth is by investing the money you don’t need to pay your bills or fund emergency funds. In fact, it’s a good idea to open a brokerage account and start buying stocks, mutual funds, and any other investment that matches your financial goals and appetite for risk.

But building a portfolio of investments in a brokerage account is not the only important step to take. Make sure to check your investments throughout the year. In fact, a good bet is to do a quarterly review every three months. Here’s why.

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It’s all about performance and balance

A great approach to investing is to stock up on stocks and other quality assets and hold them for a long time. This could increase your chances of developing a lot of wealth (whereas if you invest and cash out quickly, you could actually lose money rather than earn it).

If you take this long-term investment approach, you may not feel pressured to check your holdings too often. Suppose your portfolio loses some value from month to month. If you’re investing over a 30-year period, that’s really okay.

At the same time, however, there may be a few investments in your portfolio that are underperforming. And a good way to find out is to do a quarterly review.

It could be that one of the stocks you own will continue to lose value month after month. If this is part of a general stock market downturn, there is probably no need to take action. But if every other stock in your portfolio is gaining in value month after month, you’ll probably want to get rid of the stock that does the opposite. And checking every three months could alert you to a downtrend.

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Another reason why it’s important to check your portfolio every three months is that over time the value of different investments can fluctuate. It is a good idea to maintain a diverse mix of investments. If you have too many investments in the same market segment and that specific segment takes a hit, the value of your portfolio could go down.

For example, let’s say you start with a portfolio made up of 30% tech stocks, but over time those stocks gain so much value that they now represent 50% of your portfolio. This situation likely calls for rebalancing by loading stocks from different market segments or other assets. And doing this quarterly recording could help you avoid a scenario where you are suddenly overloaded in a market segment to a risky degree.

Pay attention to your brokerage account

An investment portfolio is not something you just have to define and forget. Instead, make an effort to review your brokerage account every few months.

Having said that, one thing you not want to do is check your investments every day. The stock market can fluctuate wildly from day to day, and you could stress yourself out by checking your portfolio too often. Plus, seeing your balance drop overnight could lead you to make rash decisions, like offloading inventory before they’ve had a chance to recover from a drop. As such, it makes sense to check in quarterly, but not much more often than that.


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4 ways to get the most from your brokerage account https://sarahlong.org/4-ways-to-get-the-most-from-your-brokerage-account/ https://sarahlong.org/4-ways-to-get-the-most-from-your-brokerage-account/#respond Sat, 23 Oct 2021 13:00:23 +0000 https://sarahlong.org/4-ways-to-get-the-most-from-your-brokerage-account/ Investing in a brokerage account is a great way to grow wealth over the long term. If you have money that you don’t need to cover your bills and have an emergency fund, you might want to set up a brokerage account to buy stocks, mutual funds and other assets. But it’s important to get […]]]>


Investing in a brokerage account is a great way to grow wealth over the long term. If you have money that you don’t need to cover your bills and have an emergency fund, you might want to set up a brokerage account to buy stocks, mutual funds and other assets.

But it’s important to get the most out of your brokerage account. Here are a few ways to do it.

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1. Buy fractional shares

The option to buy fractional shares was previously more difficult to find. But nowadays, a growing number of brokerage houses are offering investors fractional purchases of shares.

When you buy fractional shares, you own part of a share, as opposed to a full share. Why would you want to do this?

Suppose there is a company that you want to invest in that is trading at $ 500 a share. If you only have $ 250 on hand, you can’t afford a full share. But if your brokerage account allows you to buy fractional shares, you can still get a part of the company that you hope to add to your portfolio.

Fractions of shares can help assemble a more diverse mix of investments. And this is important, because the more diversified your portfolio, the easier it can be to grow your wealth over time. In addition, a diversified portfolio could protect you in the event that a segment of the market is seriously affected.

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See the selections

2. Borrow money to trade

Some brokerage accounts allow you to trade on margin, which means you borrow money to trade. To be clear, margin trading can be a dangerous prospect, and it’s an option best reserved for seasoned investors who understand the risks. But if you know what you’re doing, borrowing money to trade could help you take advantage of investment opportunities when you’re strapped for cash.

3. Put your investments on autopilot

When life is busy, it’s easy to forget to go to your brokerage account and buy stocks for the stocks you want. You can set up recurring investments with many brokerage firms, so that you can effectively put the process on autopilot and reduce your chances of missing out on opportunities.

4. Take advantage of educational resources

Whether you are new to investing or just want to learn more, many brokerage accounts come with educational resources that can teach you more about buying stocks and other assets. Reading investment guides can make buying stocks less intimidating. And in some cases, it could prevent you from making choices that result in losses.

There is a lot to be gained by investing in a brokerage account, but the key is to make sure you get the most out of your account. It’s worth exploring the benefits of your account, whether you’ve opened it recently or have had it for many years.


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Five Ways the Account Aggregator Framework Will Benefit Customers https://sarahlong.org/five-ways-the-account-aggregator-framework-will-benefit-customers/ https://sarahlong.org/five-ways-the-account-aggregator-framework-will-benefit-customers/#respond Fri, 22 Oct 2021 13:22:05 +0000 https://sarahlong.org/five-ways-the-account-aggregator-framework-will-benefit-customers/ Last month the Account aggregator (AA) framework has been launched. It is a data sharing system that will provide easy access to financial data to different parts of the financial ecosystem. AA has been a boon for individuals and small businesses as it is expected to close the credit gap in the country. It will […]]]>


Last month the Account aggregator (AA) framework has been launched. It is a data sharing system that will provide easy access to financial data to different parts of the financial ecosystem. AA has been a boon for individuals and small businesses as it is expected to close the credit gap in the country. It will allow lenders to make a quick and easy assessment of the borrower’s creditworthiness. This framework aims to give Indian citizens and businesses a single view of their financial data for a better financial future, anywhere, anytime.

Before we delve into the benefits of the system for customers, it is important to know how the AA framework works.

The system consists of three main components: the account aggregator (AA), the financial information user (FIU) and the financial information provider (FIP). An AA is a new class of NBFC approved by the Reserve Bank of India (RBI) to manage consent to share users’ financial data. The AA was born out of an inter-regulatory decision by several regulatory bodies: the RBI, the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority (IRDAI), the Authority of regulation and development of pension funds (PFRDA) through financial stability. and Development Council (FSDC).

FIUs, such as banks, lending agencies, and NBFCs, can receive data digitally authorized by financial information providers (FIPs). FIPs are institutions that oversee user data. Typically banks, mutual funds, pension funds, and some NBFCs are the source of personal or business data that FIUs can access through requests through an account aggregator.

The operation of the system is quite simple. In the AA application, users need to bind their FIP through which a user can share the data of that FIP ​​with a CRF. Currently only bank accounts can be linked and not all banks are active in the ecosystem yet. Later GST data, mutual fund data, etc. should also be included in the same.

While AA will make the credit risk assessment process easier and simpler for FIUs, here are some ways the AA framework is poised to benefit individual users and small businesses:

1. Consolidated dashboard: User can get an aggregated view of all their bank accounts in one place with just one click in the use case of personal financial management. In addition, the user will not have to run to collect bank documents to obtain loans or access other financial products.

2. Unique digital frame: Account aggregators allow the user to easily share data with financial service providers such as lenders or portfolio management / wealth service providers, consolidating their own data in one place and providing a unique digital framework to share them in reality. time.

3. User controlled data sharing: Data will only be shared with the consent of the user. The customer will have access to all the consents given. All consents provided by AA are also designed to be revocable. If the person revokes their consent for their personal or business data, the FIU should engage with the borrower offline to find a solution. Thus, the customer becomes the true owner of his data.

4. Simplistic control: The framework for consent is very simple. The user will always know –
a. Who is the data shared with?
b. What is the purpose of data sharing?
vs. What is the frequency and duration of consent?

Currently, only bank data can be made available through the AA system, but with the imminent integration of investment, insurance and tax data, a holistic view of the user’s net worth can be created, this which will facilitate the credit decision for lenders. As a result, improved access to credit for small businesses, which often have difficulty with documentation when applying for a loan.

5. Data security: The framework will also reduce cases of misuse of data related to shared accounts in physical form. The user can breathe easily as the shared data is encrypted and decrypted only at the end of the receiver. FIUs will need to adhere strictly to data governance guidelines that are currently being developed to prevent data misuse.

Since the system was introduced recently, only a limited number of users have yet created a handful of account aggregators. As more and more users enter the account aggregator ecosystem, more instant product and service use cases will be created for the customer. Especially for small businesses looking for loans to modernize their business, using the AA framework will be of huge benefit in increasing their competitiveness. The ultimate beneficiary is the user and, like the UPI, this account aggregation framework is expected to revolutionize the financial ecosystem in India for many years to come.

The author is CEO of NeoGrowth. The opinions expressed are those of the author.


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Should you open a brokerage account if you don’t have a lot of money? https://sarahlong.org/should-you-open-a-brokerage-account-if-you-dont-have-a-lot-of-money/ https://sarahlong.org/should-you-open-a-brokerage-account-if-you-dont-have-a-lot-of-money/#respond Fri, 22 Oct 2021 11:00:25 +0000 https://sarahlong.org/should-you-open-a-brokerage-account-if-you-dont-have-a-lot-of-money/ If you want to invest in stocks, exchange traded funds (ETFs), or many other types of assets, you will need a brokerage account. There are many discount brokerage firms online, so you will have a wide variety of choices. But if you don’t have a lot of money, you might be wondering if opening a […]]]>


If you want to invest in stocks, exchange traded funds (ETFs), or many other types of assets, you will need a brokerage account. There are many discount brokerage firms online, so you will have a wide variety of choices.

But if you don’t have a lot of money, you might be wondering if opening a brokerage account is worth it. The answer is that it depends on whether you have money that you can afford to lose and whether you have reached certain financial milestones.

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Take care of the basics before opening a brokerage account

Investing in ETFs and building a diversified portfolio of stocks, bonds and mutual funds can offer the potential to generate generous returns. And if you are smart about the way you invest and put your money in solid long-term assets, the risk of major and permanent losses is minimal.

However, investing inherently involves some risk, so you shouldn’t invest money that you can’t afford to lose. As a rule of thumb, you also shouldn’t invest the money you might need over the next two to five years. This is because the stock market goes through cycles and stock declines are inevitable. If you are investing funds that you will need soon, you are too likely to have to sell at a loss at an inopportune time.

For that reason, here’s what to do before opening a brokerage account:

  • Set up an emergency fund with three to six months of expenses
  • Pay off very high interest debt (like payday loans)
  • Have some extra cash that you can use to try and build a more secure future

You don’t need a lot of money to get started

The good news, however, is that you can open a brokerage account and even get started with a very small amount of extra money. You don’t need thousands – or even hundreds – of dollars to get started.

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Find the best stock broker for you from these top picks. Whether you’re looking for a special sign-up offer, exceptional customer support, $ 0 commissions, intuitive mobile apps, or more, you’ll find a broker who will meet your trading needs.

See the selections

There is an abundance of brokerage firms that have no minimum investment requirements and charge no monthly fees. Most have eliminated commissions on transactions, so you can buy stocks and ETFs without paying a fee. And many allow you to buy fractional shares, which means you can buy partial shares if you can’t afford full shares.

With these brokerage account features, it might be a good idea to open an account once you have as little as $ 5 or $ 10 to invest. You can transfer small amounts of money to your account whenever you have cash available, and you can buy almost any asset you want. You’re not limited to high-risk penny stocks – and if you buy fractional stocks, you’ll earn the same percentage return as any investor, no matter how many stocks they have. possess.

While it might seem silly to open a brokerage account to invest small amounts, the reality is that you can bet that amount and put your money to work for you. Over time, a bunch of small investments can end up being a lot, so it can be beneficial to start once you have some cash to spend. It can be the first step towards a better future.


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