The Personal Finance Geek

The Rule of 72 is a simple way to estimate how long it will take for money to double at a given interest rate. To use the rule, divide 72 by the interest rate. The result is the number of years it will take for your money to double. For example, if you invest money at a 6% interest rate, it will take about 12 years to double (72 / 6 = 12). The Rule of 72 is a quick and easy way to get a general idea of how long it will take for your money to grow. However, it is important to note that it is just an estimate. The actual time it takes for your money to double may be longer or shorter than the number of years you get using the Rule of 72. This is because the Rule of 72 does not take into account compounding, which is when you earn interest on your interest. If you want to get a more accurate estimate of how long it will take for your money to double, you can use a compound interest calculator. A compound interest calculator will take into account the interest rate, the number of years you...

An ETF, or exchange-traded fund, is a type of investment fund that tracks an index, such as the S&P 500. ETFs trade like stocks on an exchange, which means you can buy and sell them just like you would any other stock. ETFs offer a number of advantages over other types of investments, including: Diversification: ETFs allow you to invest in a basket of assets, which can help to reduce your risk. Low costs: ETFs typically have lower fees than mutual funds. Transparency: ETFs are required to disclose their holdings daily, which gives you more information about what you're investing in. Tax efficiency: ETFs are generally more tax-efficient than mutual funds. To invest in ETFs, you'll need to open an account with a brokerage firm that offers ETF trading. Once you have an account, you can place an order to buy or sell ETFs just like you would any other stock. When choosing ETFs, it's important to consider the following factors: The index the ETF tracks: Make sure you und...

  A few weeks ago, I put out a post explaining the basics of Fedspeak , the cryptic language the Fed members use to signal to each other, to banks, and to the general public what they intend to do in the near future, and then to actually put those plans into action when they make official announcements of those plans. In that explainer, I mentioned two terms that are so important to what the Fed does as an institution, and to us, ordinary Americans, that I decided to write a more detailed explainer, about those two terms specifically: the difference between quantitative easing and tightening.  Quantitative easing (QE) and quantitative tightening (QT) are two monetary policy tools that central banks use to influence the money supply and interest rates. QE involves buying assets from banks and other financial institutions, while QT involves selling assets. QE is used to stimulate the economy when it is in a recession. By buying assets, central banks inject money into the economy...

  When you buy shares in a company, you become a shareholder. As a shareholder, you have the right to vote on major decisions that affect the company. This includes things like electing the board of directors, approving mergers and acquisitions, and setting executive compensation. Voting is one of the most important ways that shareholders can have a say in how a company is run. By voting, you can help to ensure that the company is managed in a way that is in the best interests of all shareholders. If you are a new investor, it is important to understand your voting rights. You can find information about voting in the company's proxy statement, which is sent to shareholders before each annual meeting. Your online brokerage portal will let you know when the issues have come up that will be voted on at the meeting, and they’ll probably include a secure link to the questions to be voted on, which you, as an investor which the brokerage knows has some share in the company that wants to ...

A quarterly earnings call is a conference call that publicly traded companies hold to discuss their financial results for the previous quarter. The call is typically hosted by the company's CEO and CFO, who answer questions from analysts and investors about the company's performance. Earnings calls are important because they provide investors with an opportunity to get insights into a company's financial health and future prospects. The calls can also be used by companies to manage investor expectations and build relationships with the investment community. If you're new to the stock market, it can be helpful to listen to a few earnings calls to get a sense of what they're like. You can find transcripts of earnings calls on the websites of many publicly traded companies. Here are a few things to keep in mind when listening to an earnings call: The CEO and CFO will typically start the call by providing an overview of the company's performance for the quarter. The...