In Plus episode 491, we explore why buffer ETFs use European-style options with a set exercise date rather than American-style options that can be exercised at any time. We look at the maximum loss for purchasing a Treasury Inflation Protection Security in the secondary market. We consider what happens to individual bond holdings in the case a brokerage firm goes bankrupt. Finally, we consider the estate tax implications of Health Savings Accounts. … [Read more...]
478 and 479 Plus: Public and Private REIT Update, Analyzing Individual Stocks, Comparing Brokerage Firms, and Direct Indexing
In this combined Plus episodes 478 and 479, we review public equity REITs' historical performance, expected returns, and current valuations. We also compare public equity REITs to private REITs and explain why private REITs continue to limit redemptions. We review how stock managers evaluate individual stocks. We compare Schwab's, Fidelity's, and Vanguard's ownership and explain why Schwab has less compelling cash sweep options. Finally, we look at FREC, a new competitor in the direct … [Read more...]
474 Plus: Who Really Owns Our Stock Shares, a New Private Tech Company CEF, and a Canadian Cash Equivalent
In Plus episode 474, we review what it means that investors who purchase stock through a brokerage firm don't really own the stock but are only entitled to the dividends. We explore a new closed-end fund, DXYZ, that invests in private technology companies like SpaceX. Finally, we review a Canadian cash equivalent ETF, HSAV, that allows investors to avoid paying income tax. … [Read more...]
410: Is Cryptocurrency Dead?
How the bankruptcy of FTX, the world's third-largest crypto exchange, undermines trust in cryptocurrency and decentralized finance, making it even more difficult for crypto to ever be taken seriously as a monetary alternative. Topics covered include: How FTX squandered its customers' deposits How FTX is another example of a private money bank run How traditional securities lending works and why it is very low risk compared to the highly speculative nature of cryptocurrency … [Read more...]
393: What Happens If Your Brokerage Firm Goes Bankrupt
How protected are you if the brokerage firm where you hold your stocks, bonds, and crypto assets files for bankruptcy? Why you shouldn't store your crypto assets with an online broker. Topics covered include: How traditional brokerage firms protect their client assets in case of bankruptucy How cryptocurrency brokers, such as Voyager, mistreat their clients in bankruptcy proceedings What is the safest way to hold cryptocurrency Show Notes Voyager To Acquire Circle … [Read more...]
223: How To Invest When You Have Little Money
How commission free ETFs, mobile apps and zero fee index funds make it easier to invest if you have little money. What are some examples of commission fee ETFs and funds for Vanguard, Fidelity, Robinhood and TD Ameritrade. Photo by Alex Block In this episode you’ll learn: What are the options for investing when you have little money..How brokerage firms make money apart from commissions.What happens if a brokerage firm goes bankrupt.Why are companies destroying billions … [Read more...]
182 Plus: Immediate Annuities, Broker Expenses, and Shorting Stocks
This week November 25, 2017 on Money For the Rest of Us Plus, we review how to analyze an immediate annuity that pays income for life. We review a member's broker expenses to see if they are reasonable. We look at shorting stocks using an ETF. Finally, we review how to classify a pension-like vehicle within one's retirement portfolio in terms of asset allocation. … [Read more...]
164 Plus: An Egregious Violation of the Fiduciary Standard
This week July 15, 2017 on Money For the Rest of Us Plus we look at an egregious example of a broker that sold a series of complex, illiquid investments to a 97 year old man, violating both a suitability test and the new fiduciary rule. We also look at a 25 year-old member's asset allocation and look at changes he might consider. … [Read more...]
153 Plus: Evaluating Annuities, Directed Trades and Private Real Estate
This week April 15, 2017 on Money For the Rest of Us Plus we help a member analyze whether it is better to take a lump sum payment or an annuity that a former employer is offering. We look at how major retail brokerage firms such as Schwab and Fidelity direct trades to market makers and whether that is a good thing or not. We analyze how an investor might adjust their publicly traded portfolio mix if they own rental real estate. Finally, we try to determine which precious metal is most … [Read more...]
MNY115 Plus: Valuations, Brokerage Collapses and Lazy Portfolios
This week on Money For the Rest of Us Plus we look at U.S. stock market valuations using the Fed Model which compares earnings yield to ten-year treasury bonds. It shows the market is 75% undervalued. We also look at why that notion is absurd, but why we shouldn't ignore relative valuations measures that utilize interest rates. We also look at what would happen if the brokerage firm where you have your assets collapses. We revisit lazy portfolios as we answer a member's asset allocation … [Read more...]
