Wednesday, June 25, 2014

Seven Smart Investments You Can Make With Just $25 A Week

by Libby Kane

Even if you only have $25 a week, you can still make your money work for you.

How? Over on Quora, a user asked the community what they would recommend he do with his limited cash, and they were full of ideas.

Here are our favorite answers:

Thursday, June 19, 2014

How to Invest Like A Rich Guy

by Paul Merriman

From time to time over the years I've been invited to talk to high-school students about financial matters. I always enjoy this opportunity to learn from them and - I hope - teach them some important things.
One question I often ask is:
"Would you rather invest like a rich person or a poor person?"
Of course they always choose the first option.
I use this question to introduce a couple of important concepts: Mutual funds versus individual stocks and index funds versus actively managed ones. High-school students, most of whom have little or no exposure to investments, have no trouble comprehending that a wealthy investor will own thousands of stocks, while a poor one might own only a few.
My point: Buy a handful of individual stocks, and you will be following the poor person's example. On the other hand, if you buy mutual funds - especially index funds - you will be investing like the rich investor.
As it turns out, the divide between poor investors and rich ones is deeper than I had thought.
A recent article published at summed it up this way: "Rich people prefer productive companies while the poor prefer gold. That's bad news."