Averaging Down Stocks – FAQ

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

Which Factor Is Important To Consider When Building An Emergency Fund? – FAQ

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

What Are Covered Call Options? – FAQ

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

What Is A Buy-Write? – FAQ

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

What Is Fast Cash? – FAQ

Money Running Fast, Fast Money.

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

What Is At The Money Vs Out Of The Money Vs In The Money? – FAQ

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

What is FPU? – FAQ

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

What Are Passive Side Hustles? – FAQ

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

What Is A LEAP Option? – FAQ

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

How Do T-bills, T-notes, and T-bonds Differ In Maturity Dates?

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