More Posts by Robert Farrington

The New Trend In Automated Savings: Auto-Escalation

When signing up for benefits this year, you may notice something different when it comes to your 401k contribution – opt-out auto-escalation.  Confused?  It’s the idea that employees need to decide NOT to join the 401k and NOT to increase contributions each year, rather than opt in. When enrolling in your benefits, you’ll notice something similar [...]

Investing Tip #110: Focus on the Future

In investing, it’s what happens in the future that matters most. Though current and past data are relevant for any meaningful analysis, your decision has to based on future potential rather than on what has already happened in the past. If you want to learn more check out these resources: Cash Cow Stocks: Great for [...]

Investing Tip #109: Learn Technical Analysis Before Trading

Technical analysis is based on the study of charts and graphs of trading patterns and prices to forecast the future movement of prices through the study of past market data. Statistical tools provide technical indicators based on price and/or volume data. They use current and past market data to indicate market trends and to estimate [...]

The Five Worst IRA Mistakes Made Everyday

Individual retirement accounts (IRAs) are great vehicles for investing in for retirement. However, as with anything the government creates, they don’t always make it easy to navigate the ins-and-outs of the product. If you currently have an IRA, or are thinking about starting to invest in an IRA, make sure that you don’t do these [...]

Does Speculation or Accumulation Hold the Key to Saving?

In previous generations, saving money was a relatively simple and formulaic process. Individuals would either enter the workplace straight after leaving school or start an apprenticeship, after which time it is was usual for them to remain in the same role of employment for decades. Throughout the duration of their working life, they could rely [...]

How to Invest in Companies Outside the USA

Our world is becoming more and more globalized each day. In other words, there is more international trading, more foreign transactions, and simply more interconnectivity between business and countries that are thousands of miles from each other. It is definitely an exciting time to be alive because with this globalization comes many opportunities that did [...]

Investing Tip #106: Buy Companies with a High Sustainable Growth Rate

Buy companies with high sustainable growth rate. It is the reasonable growth rate that a firm can sustain and can finance using internally generated assets and without additional debt or equity. Its growth based on internal resource generation and the stock records consistent growth. If you want to learn more check out these resources: Key [...]

Investing Tip #105: Park Surplus Funds in Short Term Money Market Securities

The money market securities mainly include short-term fixed income instruments, treasuries and money market funds. Although they do not offer high returns, you still earn more compared a savings account. You may keep your money parked here until you get better medium term or long term investment options. If you want to learn more check out [...]

Investing Tip #104: Avoid Complex Investment Products

Many companies and funds come out with innovative financial products which are complex to understand. Analyze them meticulously. Before you invest in anything, you need to understand the risk and reward involved. If you want to learn more check out these resources: The Riskiest Investments You Can Make How to Keep Track of Your Portfolio, [...]

How To Find and Vet A Financial Advisor for Millennials

Millennials are just starting to consider hiring financial advisors en mass, and many different types of financial advisory firms are starting to market specifically to young adults.  Some of these are online services like we’ve reviewed here: WiseBanyan and iQuantifi.  Others are more traditional firms, like Sophia Bera’s Gen Y Financial Planning, but even these firms mix [...]

Investing Tip #103: Look for No Load Mutual Funds

You don’t have to pay a front-end or back-end load when purchasing or redeeming the mutual funds issued under the SEC rule 12b-1.  The mutual fund charges only an annual marketing or distribution fee as an operational expense @ 0.25-1% of the current value of the investment. To get the most out of your investments [...]

Investing Tip #102: Don’t Invest Based on Big Advertisements

Many companies promote IPOs or new funds through aggressive marketing tactics. Always do your own research before buying any financial products. Brokers and agents generally push higher-commission products. If you want to learn more check out these resources: 4 Easy Steps to Grow Your Money How to Use SWOT Analysis for Your Investments

Investing Tip #101: Keep Your Credit Score High

The banks check your credit score while approving you a personal, car or home loan or a new credit card. Your credit rating scores are maintained and updated by Credit Information Companies. Your score depends on your credit history showing timely payment of loans, credit card dues, telephone bills etc. Late payments and defaults drag [...]

Warren Buffett’s Top 5 Tips For Investing

Warren Buffett is one of the best investors in history, and is widely regarded as the “Oracle of Omaha”.  Buffett is a value investor at heart, but he also shares a lot of other insights during shareholder meetings and in his annual letter to shareholders.  As such, it is pretty easy to understand Warren Buffett’s [...]

Investing Tip #100: Invest only in Companies with Good Corporate Governance

Look for companies with a reputation of high ethical business conduct. A good corporate governance policy safeguards stockholders and stakeholders interest. If companies are well governed, they will usually outperform other companies. Poor corporate governance weakens a company’s potential and at worst can pave the way for financial difficulties and even fraud. You should see [...]

4 Finance Tips I Wish I Knew at 18

Man, sometimes don’t you wish you could go back in time and change something in your life – even your financial life?  Sometimes I wish I could go back to that time right after high school graduation and re-think some of the financial decisions I made.  While none of them have been detrimental to my [...]