http://www.cakefinancial.com Most investors know what a what a 401(k) plan is, but many aren’t sure why they should consider one. After all, retirement may seem far away, and current expenses may seem more pressing. It’s true that a 401(k) plan is designed to help you save for retirement. But it can also benefit you today. Let’s look at all of these advantages. First, when you contribute money to a 401(k) plan, your income is reduced by the amount of the contribution—and that can decrease your income taxes. Second, the money you put in a 401(k) plan grows, untaxed, until it’s withdrawn. That’s different from most investment accounts, where you have to pay taxes on interest, dividends and capital gains. So, with a 401(k) plan, you could experience higher overall investment returns. This can really add up, particularly if you’re a young worker with several decades to contribute. Finally, when you do withdraw the money from your 401(k) plan, ...
http://www.cakefinancial.com You may not be the only one contributing to your 401(k) plan, thanks to employer matches. What does that mean? Simply that your employer might match part or all of your 401(k) plan contributions. For example, your employer might match 100% of the first 4% you contribute and 50% of the second 2% you contribute. That can really add up. Let’s say you make $100,000 pear year and contribute 10% to your 401(k) plan. That makes your annual contribution is $10,000. Your employer matches your first 4% dollar-for-dollar, contributing $4,000. It matches your next 2 percent 50 cents on the dollar, contributing $1,000. You end up with $15,000 in your account—$5,000 more than you contributed! Keep in mind that your employer’s contributions may not be vested for a certain number of years. In other words, they’ll be in your account, growing. But, if you leave the company within a specified time, you can’t take them with you. Finally, there are limits as to ...
This week: Our CEO + our Sven discuss Google, the Eighties and why you should be looking at commodities. Plus kinky Swedes!
http://www.cakefinancial.com If youâ??re interested in trading options, you need to understand the difference between the two major typesâ??calls and puts. First, letâ??s review how options work. An option is a contract. It gives you the rightâ??but not the obligationâ??to buy or sell an asset at a specific price before a certain date. As I mentioned, there are two types of options. One is the call option. It gives you the right to buy an asset at a certain price by a certain date. That may seem complicated, so letâ??s look at an example. Say you think a particular stock, which is currently trading at $100 a share, is going to skyrocket, but youâ??re short on cash at the moment. So, you buy a call option on that stock for $1,000. It lets you buy 100 shares of the stock at $100 each anytime within the next three months. As you predicted, the stock goes through the roof, hitting $1,000 a share. But guess what? You have a contract. Someone has to sell you the stock for $100 a share. So, ...
http://www.cakefinancial.com So you’re interested in PowerShares ETFs? First, let’s review how ETFs, or exchange-traded funds, work. These investment vehicles, like mutual funds, hold assets, such as stocks or bonds. But, unlike mutual funds, they trade on an exchange, like stocks. PowerShares are simply a brand of ETFs. They’re managed by PowerShares Capital Management LLC, which is a unit of a UK-based investment management company called INVESCO PLC. There are almost 50 PowerShares ETFs available, and they focus on a variety of market sectors. Cake Financial supports powershares ETF's. http://www.cakefinancial.com
You may have heard of exchange-traded funds, ETF for short, which are investment vehicles that track an index. But did you know there are bond ETFs? ETFs work much like index mutual funds in that they hold assets in quantities mimicking an index. But, unlike mutual funds, ETFs trade on an exchange, like a stock. Bond ETFs are simply ETFs that track a bond index instead of a stock index. Some track broad bond indices, such as the Lehman US Aggregate Index. Others track narrower bond indices, such as the Lehman 1-3 Year Bond Index and the Lehman 7-10 Year Bond Index. This allows investors to obtain exposure to bonds of specific maturities. Bond ETFs are attractive because they offer easy diversification as well as low costs and tax efficiency. Because they aren’t actively managed, ETFs typically don’t have high fees. They also tend to have low turnover, to they generate relatively low capital gains.
June 13: What do Viagra and smoking have in common?
This week Steve and Sven discuss shorts, Swedish trucks and the whereabouts of Lindsey Campbell.
Oct 10. Which shorts are Cake's top investors buying this week? http://www.cakefinancial.com
http://www.cakefinancial.com Today’s energy markets are booming, fueling demand for new ways to invest in the sector—and making commodities ETFs more and more popular. First, let’s review how ETFs, or exchange-traded funds, work. These investment vehicles, like mutual funds, hold assets, such as stocks or bonds. But, unlike mutual funds, they trade on an exchange, like stocks. Commodities ETFs are simply ETFs that track commodities, such as precious metals, oil, gas, and crops. Different commodities ETFs do this in different ways. Some hold physical assets, so each share in an ETF might present a specified amount of the asset—say, one-tenth of an ounce of gold. Others track the performance of commodities-related stocks or futures contracts. Most investors won’t want to make commodities ETFs the bulk of their portfolio—it’s simply too risky. But commodities ETFs can be a good diversifier. That’s because they can help hedge your portfolio against rising ...
This week: Our CEO + our Sven mix complex bond analysis with the company's groundbreaking bathroom recruiting strategy.
http://www.cakefinancial.com If you’re interested in trading options, you need to understand the difference between the two major types—calls and puts. First, let’s review how options work. An option is a contract. It gives you the right—but not the obligation—to buy or sell an asset at a specific price before a certain date. As I mentioned, there are two types of options. One is the put option. It gives you the right to sell an asset at a certain price by a certain date. That may seem complicated, so let’s look at an example. Let’s say you own 100 shares of a company called Lemon Car Dealers, which you bought at $100 a share, and is still trading at $100 a share. For some reason, you think the stock might decline in value, and you want to protect yourself. After all, if the company goes out of business, you’d be out 100 shares at $100 each, which is a total of $10,000. So, you buy an options contract for $1,000. This particular contract lets you ...
http://wwww.cakefinancial.com Mortgage-backed securities may sound complicated, but they really aren’t. When you take out a mortgage with a local bank, that bank typically sells the mortgage to another entity—usually a big financial institution, such as an investment bank or one of the two U.S. mortgage giants, Fannie Mae and Freddie Mac. Those financial institutions take your mortgage, packages it with hundreds of other mortgages, and sell shares of the package. These shares are called mortgage-backed securities. Simple, right? If you’re familiar with the term, it’s probably because mortgage-backed securities became controversial during the housing boom of 2004 and 2005. Around that time, lower interest rates increased consumer demand for loans, and banks responded by creating a new type of mortgage. It was called the subprime mortgage, and it was made to individuals with questionable credit histories. Banks then sold these subprime mortgages, which were packaged ...
http://www.cakefinancial.com Exchange-traded funds. Index funds. What’s the difference? An exchange-traded fund, ETF for short, is an investment vehicle. Like a mutual fund, it holds assets, such as stocks or bonds. But, unlike a mutual fund, it trades on an exchange, like a stock. Most ETFs track an index, such as the Dow Jones Industrial Average or the S&P 500 Index. As a result, many people think of ETFs as modified index funds. ETFs, which are relatively new investments, are attractive because of their low costs and tax efficiency. Because they aren’t actively managed, ETFs typically don’t have high fees. They also tend to have low turnover, to they generate relatively low capital gains. The Best Way to Manage Your Investments. http://www.cakefinancial.com
July 25: Steve & Sven gush about Hidden Gems... and Justin Timberlake!
Sep. 19 2008. Steve and Sven talk about joining the Revision3 family, investments that "spit" money and why Vaseline is important, plus much much more...
http://www.cakefinancial.com An IRA, short for Individual Retirement Account, is an investment account in which you save money for retirement. Although there are several types of IRAs, the most common is the Traditional IRA. How does it work? Anyone under age 70½ who earns money can make contributions to a Traditional IRA. The contribution limit changes each year. Once the money is in your IRA, you can invest it in a number of different securities, such as stocks, bonds and mutual funds. As the years go by, all of the income from those investments—that is, interest, dividends, and capital gains—accumulate tax-free. As a result, your savings can really add up. You can begin taking distributions from an IRA at age 59½. At that time, you pay taxes on the withdrawals at your ordinary income tax rate. Join Cake Financial Today for FREE! http://www.cakefinancial.com
http://www.cakefinancial.com If you’re taking a position with a new employer or even retiring, you’re faced with a major financial decision: what to do with the money in your 401(k) plan. No problem! One of the benefits of a 401(k) plan is that it can follow you throughout your career, thanks to rollovers. When you change jobs or retire, you have several options for your 401(k) plan. You can leave your money in the plan. Or, you can roll your money into another retirement plan—another 401(k) plan, if available, or an Individual Retirement Account, also called an IRA. If you’re changing jobs and like the investment options in your new employer’s 401(k) plan, rolling your money into that plan might make life easier. With all of your retirement money in one account, it should be easier to track. But, if you’re unsatisfied with the investment choices in your new employer’s 401(k) plan, or you’re retiring, you can open an IRA through a bank or brokerage ...
Cake Financial: The best way to manage your investments. The question is... how do you get started with Cake Financial... or better yet, how do you get started down the path of becoming a better investor? In this screencast we cover the basics of Cake Financial with the hopes of getting you on your way to becoming a better investor! Learn more at http://cakefinancial.com
This week Sven welcomes guest host Jeff White to riff about GE, E*Trade and Apple. Plus rich Swedes for a change!
Not finding what you want? View results from YouTube.
Comments