Basic financial terms, explained in such a way I can not only comprehended, but apply on road to financial independence.
The simple answer is NO. Worthy Bonds are not FDIC insured per their website. But don’t stop there; there are many questions I, too, had when I was looking at Are Worthy Bonds A Good Investment Alternative To Outlet Finance, for my ‘spare’ cash. Let me share the thoughts and questions I had going through … Read more
Averaging down on stocks is often a knee-jerk response to an already-held price decline. Getting caught up in the hype of a rapidly moving market can cause us to lose track of our goals. Curious, do you even calculate the break-even point when averaging down? To meet our goals, we need to understand how we … Read more
Let’s talk about averaging down stocks and how it can help as an investor. What Is Averaging Down In Stocks? Averaging down stocks is where you continue to buy stocks you already hold as the stock prices decline. This strategy has you buying your latest stocks at a lower price than your earlier ones, and … Read more
What Is A High-yield Savings Account? – A High-Yield Savings Account (HYSA) is a type of savings account that offers a higher rate of return(interest) than the standard savings account you find with a typical bank. That is the “canned response,” but what does this mean? Simply put, a High-Yield Savings Account (HYSA) pays you … Read more
Now, this FAQ is about something other than how to make the most money with the Wheel Strategy or the best Wheel Strategy stocks to maximize return. It’s a simple question; if asked, I would answer… What Are Good Stocks For The Wheel Strategy? Good stocks for the Wheel Strategy are stocks you are willing … Read more
So, in my words, what is a Wheel Strategy? The Wheel Strategy is a systematic, repeating approach to writing PUT and CALL options in a repeating process where you maximize your premiums(and sometimes capital gains) returns.
When it comes to trading stocks, there are some terms/jargon that you might hear, and once you learn what they mean, it makes you cringe a little when spoken. Well, bag-holding is one of those terms. Bag Holding In Stocks. Bag-holding in stocks refers to holding under-performing stocks in the hope of a future increase … Read more
Which Factor Is Important To Consider When Building An Emergency Fund? – Determining your minimum monthly expenditures is the most important factor in building an emergency fund. The goal of an emergency fund is to replace income used to keep a roof over your head, food in your stomach, and utilities. Beyond that, there is … Read more
A Naked Call Option is an investment strategy where you sell a CALL option, collect a premium, and secure the exercising of the call with no underlying security. This means that if the buyer exercises the CALL option, you are obligated to sell the securities, stock, or ETFs to the option owner at the strike … Read more
Covered Calls are call options secured with your existing stocks/ETFs. You are writing or selling a CALL option, and the buyer can call away your stocks at a specific price, strike price. To cover your position against massive losses, you use your existing stocks as collateral for the option contract. Selling Covered Calls (CCs) is … Read more
This debt elimination technique pays off personal debt from the highest interest rate to the lowest. All personal debt is organized from the highest interest rate to the lowest. Once you have this list, these are the steps. Avalanche Debt Method Steps: 1.- Budget And Make Minimum Payments On All Debts. 2.- Focus on Extra … Read more
A Buy-Write strategy involves buying a security, such as a stock or ETF, and immediately writing (selling to open) a covered-call option against it. This strategy lowers the initial price of the security immediately by capturing an income premium at the time of purchase. Are There Different Types Of Buy-Writes? Yes, depending on the strike price you … Read more
Often, you hear financial advisors mention “fast cash” and having it available for the proverbial rainy day. When I was in a chat with another F.I.R.E. believer, I noticed she mentioned where she kept her Fast Cash. I found it conflicting since her “Fast Cash” was in a High Yield Savings Account (HYSA). There is … Read more
Ever wondered what it means when someone says an option is ‘in the money,” ”out of the money,” or “at the money?” These terms are like secret codes used in the world of options trading. There are many ways to explain this, including intrinsic and extrinsic value comparisons, but I’m going to consider it a number … Read more
In the context of finances and money. FPU is the abbreviation for any use for Financial Peace University, including myself. A financial wealth growth education program created/taught by Dave Ramsey. FPU is often called Dave Ramsey’s Financial Peace University. Note: Not to be confused with the computer FPU abbreviations, which means Floating Point Unit. Read more … Read more
Only people who use Passive and Hustle in the same sentence are trying to sell you something. What are passive side hustles? Let’s break down the sentence if you think there are passive side hustles. Definition of “Passive”: Passive is an adjective meaning: “not active or operating.” Source: https://www.merriam-webster.com/dictionary/passive Defination of “Side Hustle”: Side Hustle … Read more
A Leap Option, or LEAP, is short for Long-Term Equity Anticipated Securities, publicly traded options with expiration dates longer than one year. Are LEAP Options Different From Regular Options? A LEAP option is still an option with an expiration date beyond a year from its creation. Now, let’s delve into the details. A LEAP option shares … Read more
This question often brings me to a screeching halt when I find a fellow F.I.R.E-type or novice investor with whom I start talking shop. We could have some high-level conversation about the latest job reports and how they will affect the FED‘s stance on monetary easing, and then bam! “What is the best Gold to … Read more
If you go to Treasury Direct, https://www.TreasuryDirect.gov, you can see when you selected to buy any treasury items; it lists out T-Bills, T-Notes, and T-Bonds, with their maturity ranges. How Does Treasury Direct List T-Bill, T-notes, and T-Bond Dates? T-Bills are short-term fixed-rate securities, so they are measured by weeks and only go up to … Read more
Oh no, this was the worst for me. A paycheck came in, and somehow, I had money left over. I could make extra money by working overtime. When in the situation, I was often perplexed about the best way to invest spare cash. First, that thought about investing was not the first thing I thought … Read more
