Risks and Benefits of Buying on Margin

eOptionMargin Accounts

Investors have used margin accounts to boost their buying ability for years. With these accounts, the investor borrows some money from his or her broker and uses an amount of stock – the margin – to secure the loan. Because stock is the collateral, there are some big risks inherent in the arrangement. There are, however, also big benefits that … Read More

When to Start Saving for Retirement

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At first, the answer to “when to start saving for retirement” seems simple. The sooner someone starts saving, the more that person will have when it is time to stop working. For most people, this means “immediately.” Life, however, is rarely as simple as that. When Is It a Bad Idea to Save for Retirement? The worst time to save … Read More

Brief Explanation of How Margin Accounts Work

eOptionMargin Accounts

The concept of margin accounts is one that often comes up in the business press. Since bad news makes headlines, they are often mentioned when someone ends up losing money. This, however, doesn’t mean that it is always a bad idea to use them or that losses are inevitable. It just means that publications skew perceptions. Here is an honest … Read More

Differences between Popular Types of IRAs

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People starting to save for retirement will quickly find that many sources recommend using individual retirement accounts (IRAs) for this purpose. However, they will see that there is a bewildering array of accounts with this name. What is the difference between IRA accounts? Here is a quick overview to help clear things up: Roth IRAs While most IRAs are tax-free … Read More