Tag: investing

5 Reasons Why I Don’t Short-Sell Stocks

Most rideshare drivers probably have a checking account. Many might also have a separate savings account too, possibly with a high interest rate. Even fewer drivers are likely to have a retirement account setup, which would need to be done independently (since no rideshare-app companies currently offer 401Ks). And if you’re a rideshare driver that’s currently investing some of your profits into a brokerage account, it’s far more likely that you’re purchasing Exchange Traded Funds (ETFs) or Mutual funds.

These characteristics described are exactly what my financial picture looks like right now. I’m using a business checking account, a linked high-yield savings account, am socking money away into a brokerage account, and have an Individual Retirement Account (IRA). What I don’t do with my rainy day money is buy/sell individual stocks. And especially don’t short-sell stocks through a trading platform of any kind. Here’s why. Read more

How to Invest While Paying Off Debt?

The age old question of how to allocate available income is best resolved by either paying off pre-existing consumer (credit card, car loans, etc.) debt, and/or investing for the future.  Presumably, when we speak of investing the most popular way to accomplish this is through stocks and bonds.  But how much to throw at debt, and how much to invest is often under debate.  Are there fixed percentages that financially responsible individuals use (e.g., 85:15%, 60:40%, etc.)?  Can we just add an extra $100 on top of our minimum monthly payments and live with that?  Does investing in asset classes that average a certain percentage of return justify putting our dollars there [e.g., if I can confidently assume a 9% rate of return year-over-year (YOY) but my car loan interest rate is only 6%, I should choose funding that particular asset class]?

All of these questions will be explored, and more, in this article.  But first, it’s worthwhile mentioning that no two snowflakes are identical.  And thus, not everyone will have the same savings strategy.  Although the strategies contained herein may be effective for some, and not others, the basic idea(s) are almost universal.  So take what you can from me, and absolutely feel free to tweak according to personal preferences.

Now, let’s go tackle some debt.

Read more