I love talking about personal finance and wealth building. Stay tuned for regular updates to this section. I am sure you will find this useful!


How to Start Investing

If you have never made investment decisions before, the trickiest question is how to start investing. Where do you start? What are your investment options? How much should I invest in each investment class? Are there any systematic strategies? I am going to try to answer some of these questions. Debt First and foremost, I

Money Market Accounts

If you have a large sum of money that you don’t wish to risk yet would also like to earn some interest, money market account is the answer. Most online banks offer money market accounts to their customers. They generally pay higher interest rates or annual percentage yields (APY) than your regular checking and savings

What is a Business Cycle

A business cycle is a cycle of fluctuations of the economic activity measured by the gross domestic product, or GDP, of a country. From its trough to peak, it is divided into 5 important stages, as defined by Calverley, and shown below. The first stage after the trough is recovery. The economy slowly begins to

Why do I need a Diversified Portfolio

A diversified portfolio will minimize your portfolio risk and to do so you will have to invest in different types of assets instead of concentrating your bet in a single asset class. The picture below shows the annual performance of different asset classes from 2008 to 2018, ranked from best to worst. Now try finding

Investment Decision Process

The investment decision process should be very similar to the shopping process you follow for goods and services, such as clothes, or electronics. While shopping for any product, you try to evaluate how much that product is worth to you, is it good value for money, and are there comparable items that sell below that

Market Index

“The Dow hits an all time high”. “US Market Indexes start the week with gains”. “Nasdaq exits bear market as stocks rally”. You may have read similar headlines in the newspapers and heard them on evening news. But what exactly is a market index? A market index is a collection of securities with characteristics defined

Types of Investments

As an investor, you have a variety of vehicles to invest in. Each type of investment comes with its own risk-return profile. What that means is generally higher returns on a type of investment is associated with a higher level of risk. Here are some of the different types of investments that may be available

What is the Stock Market

S&P, Dow Jones, Nikkei, FTSE, Russell have become part of our everyday experience. Television and radio broadcasts over the world have hundreds of reports daily with experts analyzing every move of the stock market. Daily newspapers have reports from analysts linking events across the globe to movements of the stock market indices. Yet most common

Yield Curve

When markets get insecure, everyone talks about the yield curve. Its inversion is often seen as a sign of an impending recession. But what exactly is it? To understand a yield curve, you have to understand bonds. A bond is a promise made by a company or the government to an investor that the invested

Target-date funds

Target-date funds are designed to provide a simpler investment solution for portfolios with a set investment horizon, for example, a college savings plan or an individual retirement account (IRA). These funds start aggressive, and as the target date approaches, the fund mix becomes more conservative. Target-date funds are named by the year in which the