Which should you invest in- mutual funds or index funds? What's the difference and which is a better option for you? First, let's discuss the commonalities of these two types of investments. Both are great tools to help you diversify, allowing you to buy shares in many comnpanies at once. Basically, mutual funds and index funds both own shares in many stocks and when you purchase the fund you are buying a small portion of all the stocks owned by the fund. However, there are some major differences between index funds and mutual funds you should know about before you make a decision on which to invest in.
Active Management vs. Passive Management
The main difference between index funds and mutual funds is that mutual funds are actively managed while index funds are passively managed. This means that mutual funds own stocks purchased by a mutual fund manager, whereas index funds simply own shares in indexes like the S and P 500 or the Dow Jones Industrial Average. While mutual funds have a manager picking the stocks that constitute the mutual funds, index funds typically own shares in the companies that make up the index in roughly equal proportion to how much of the index the stock comprises.
Read More...
Unless you were born into mega wealth and never plan to borrow a cent, building your credit score is a great thing to do. It will help lower all you future payments on items such as cars, homes and other big ticket items you may plan to purchase on credit. The important caveat is that it takes time to properly build your credit, so the earlier you start the better. The good news is that you can significantly raise your credit score, it won't take much time and if you do it correctly, you won't have to spend much money.
Read More...
Warren Buffett, often referred to as the Oracle of Omaha, is one of the most renowned and successful investors in the world. As the chairman and CEO of Berkshire Hathaway, his wealth and investment strategies have made him an iconic figure in the finance world. While many are familiar with his remarkable financial achievements and investment philosophies, there are several lesser-known and intriguing facts about Warren Buffett that provide a more comprehensive understanding of this legendary investor.
Read More...
