DFI Wealth Management Blog

Wealth of Financial Information

Browsing Posts published in May, 2011

Alternative Indexes   Fundamentally weighted and equal weighted indexes have emerged as the dominant player to traditional market-cap weighted indexes and products. In an equal weight index securities or sector component makes up the same percentage of the index. Fundamental indexing adds some complexity by selecting indexing components based on financial data such as earnings, [...]

Gold ETF’s I am providing the following information on gold ETF’s only as to educate and not meant as a recommendation to purchase or sell gold ETF’s. Gold has long been used as a hedge against political and economic uncertainties. Should you own actual gold or shares in gold ETF? The advantage of gold ETF [...]

Where to park your money for liquidity and safety I was recently reading a blog post that described four safe places for your money and that being the following:   Treasury Inflation Protected Securities US Saving I-Bonds Short Term Bond Funds Bank CD’s In a previous post on this blog I wrote two articles recently [...]

Internet Marketing – Step by Step Guide (part 3)   In previous two articles I mentioned the need for training and education; in addition I provided a couple of resources to get you started for free. Next step is to decide whether you wish to purchase web design software such as Expression Studio 4 Web [...]

Treasury Bonds Treasury bonds pay a fixed rate of interest every six months until they mature. They are issued in a term of 30 years.   Minimum Purchase: $100 Maximum Purchase (in a single auction): Non-competitive: $5 million (Competitive: 35% of offering amount.) Investment Increments: Multiples of $100   The price and yield of a [...]

Stop Loss and Stop Limit Strategies   A stop order is an instruction to sell a security at a certain market price. Thus, if your shares of a company trade at $100 per share and you want to cap losses at 15%, you could set a stop-loss at $85 per share; if the price falls [...]

Employer 401k Plan vs. IRA Rollover Should you consider rolling over your former employer 401k plan into an IRA Rollover account? I read a blog post a few days ago suggesting you might want to consider leaving it with your former employer. The article pointed out that in considering whether to keep money in a [...]

Treasury Inflation-Protected Securities (TIPS) How does TIPS work? Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater. TIPS pay interest [...]

Market Timing The key to obtaining a decent return on your investment is “consistency.”  Strategies that will help grow the portfolio and protect it against loss. Day trading and market timing is a formula for disaster, so what strategies are acceptable? Buy and hold strategies no longer work, a better strategy is to monitor the [...]

US Savings Bonds – New Rates May 1, 2011 New rates were published May 2, 2011 for both the EE and I Savings Bonds. The I Bond rate is going to be hard to beat as its rate is 4.60 % compared to Bank CD’s and money market rates. The I Bond is adjusted every [...]