FINANCIAL NEWS UPDATE:
Jim Cramer takes a look at some of the biggest headlines of the week that have rocked stocks on the market.
Health and Science
SPECIAL DONATION REQUEST UPDATE:
BEST DEAL UPDATE:
Normally, it’s good to believe in yourself. But new research indicates that it can be bad advice for amateurs investing online in unregulated, sometimes risky, equity crowdfunded ventures.
Consumer Behavior News — ScienceDaily
High school basketball is so hot, it’s drawing star power. Carmelo Anthony and MSG Networks are announcing Thursday that they are backing Overtime, a Brooklyn-based sports network that focuses on emerging high school stars. The move pits Anthony, the former Knick forward, against the likes of LeBron James and Dwyane Wade, who have invested in…
Media | New York Post
SPECIAL DISCOUNT DEAL:
If you’ve spent so much as 10 minutes reading a personal finance blog — and clearly you have — chances are, you’ve heard that investing is one of the best ways to put your money to work for you.
The power of compound interest can turn even modest savings into an appreciable nest egg over time. And best of all, it’s passive income.
But if you’ve never put money into the stock market before, the prospect can be overwhelming. What exactly does “buying stocks” even mean? And what kind of account do you need to get started?
What Is Investing, Anyway?
Investing is a way to build wealth by purchasing assets today that you anticipate will grow in value, yielding a profit over time.
There are many different ways to invest, including purchasing tangible items (like real estate or fine art) with the intent of selling them later. But in this post, we’re going to be focusing primarily on stock market investments.
Investing for Beginners: A Quick Vocab Lesson
One of the first things new investors come to realize is how much lingo there is to know. It’s hard to feel confident about spending your money on stocks, bonds or mutual funds when you’re not even sure what any of those words mean!
The good news is, nobody knows what they’re talking about (or which words to use) when they’re first getting started. Here’s a quick vocabulary rundown.
The stock market is what we call the abstract space where investors buy and sell investments. There are many different types of investments, or “assets,” you can buy and sell on the stock market.
Stocks are shares, or small pieces of asset ownership, of a company. Stockholders earn money when the company performs well and increases in value — but they’re also vulnerable to losses if things don’t go as well as hoped. Thus, stocks can be a relatively high-risk investment.
Bonds are another common type of stock market investment, but they work differently than stocks do. Bonds are actually debts owed by corporations or, more commonly, governments.
When you purchase a bond, you’re essentially lending your money to the bond issuer. Bonds help investors earn money by accruing interest — and because bond issuers are obligated to repay their debts, they’re considered a safer investment than stocks.
What’s more, bonds are repaid after a fixed amount of time and at fixed rates (which is why they’re known as “fixed-income” assets), making them a reliable source of investment return. However, they don’t have the exponential growth potential that stocks do.
Mutual funds are pre-built collections of stocks, bonds and sometimes other types of investment assets, like real estate, which are created and managed by financial professionals.
Investing in mutual funds allows individual investors to buy a diverse segment of the market without doing all the research and footwork to assess individual stocks themselves.
Index Funds and Exchange-Traded Funds (ETFs)
These funds are similar to mutual funds in that they include a basket of different assets, but they’re not generally actively managed by a live human being. Instead, index funds are created based on a specific market index, like the S&P 500 or the Dow.
A market index is a representative collection of stocks that are used to track the performance of an area of the market.
Exchange-traded funds might be collections of companies that share industries, geographical locations or market capitalization — that is, the total dollar amount of the shares of the company available on the market.
Unlike mutual funds, they’re also traded throughout the day on the exchange, which may make them a better option for investors looking to play a more active role in their portfolios.
Your investment portfolio is the collection of all the investments you make and keep, otherwise known as your “holdings.” For example, you may have 12 shares of Corporation X, 27 shares of Corporation Y and 17 shares of an ETF which includes stocks, bonds and real estate.
Phew! It really is a word salad, huh? Now that you’ve got a better handle on basic investing terms, let’s learn more about doing some actual investing of your own.
How to Get Started With Investing
How best to get started investing will vary depending on your personal financial goals, as well as the amount of money you can afford to put toward your growing portfolio.
But if you don’t have a whole lot of extra cash lying around, don’t worry; there are many ways into the world of investing, even if your initial investment is only $ 100 (or less!).
Saving for Retirement
Aside from building wealth in general, one of the most common investing goals is to save for retirement. If that goal’s on your list, you’ve got lots of investment vehicles to choose from.
For example, if your employer offers a 401(k), contributing part of your wages to that company-sponsored retirement account is a way to get started investing. And if your benefits package includes an employer match, you’ll definitely want to take advantage of that — it’s free money!
Depending on your plan, you may have just a few curated investment options to choose from or access to a wide variety. (Psst — we’ll talk more about some basic investment skills in a second, so don’t hit that “buy” button just yet!)
Types of Investment Accounts
Even if you don’t have access to a 401(k), you can open a retirement plan like a traditional or Roth IRA — that is, individual retirement account.
These are investment accounts designed specifically for retirement, which are governed by special rules and tax incentives. For instance, contributions to a traditional IRA are taken pretax today, but they’re later taxed upon withdrawal; Roth IRA contributions are taxed now but grow tax-free.
And in both cases, it’s not as simple as pulling your money out whenever you want; except in specified circumstances, you’ll need to wait until you reach age 59 1/2 to fully access that money.
IRAs are available through a huge range of financial firms, from nationwide banks like Chase to brokerage firms like TD Ameritrade. Financial companies like these may also offer brokerage accounts, which aren’t subject to the same special rules and regulations as investment vehicles built specifically for retirement.
A brokerage account allows you access to a trading interface where you can purchase individual stocks, bonds or ETFs, creating your own portfolio from scratch. But if you’re not feeling up to DIYing your investments, you can also use a robo-advisor, like Ellevest, which will allocate your assets for you.
Apps, ETFs and Automatic Contributions
Only have a few bucks to spare? Apps like Stash and Acorns make it easier than ever to get started investing with as little as $ 5, and they offer curated ETFs to help you diversify your holdings.
You can also set up regular, automatic contributions, which will fuel your portfolio’s growth over time.
Basic Investing Strategies to Know Before You Go
Now that you’re versed in the lingo and you’ve got the lowdown on a few accessible investment options, there are just a few more things you need to know before you take the next step and become an investor yourself.
Since all investments involve some risk, it’s imperative to be prepared and informed on how to best mitigate those risks ahead of time.
Perhaps the most important investment strategy is one you’ve doubtless heard before: diversification. Diversifying your portfolio means purchasing a wide range of assets, including different types of holdings and different issuers.
Why is diversification so important? Well, it’s just like that old saying about not putting all your eggs in one basket. If you drop that over-laden basket and don’t have any other eggs in reserve, you’re in a messy situation.
Similarly, when market values fall, your portfolio will have a lot more margin for error if you’ve got a variety of holdings. If one of the companies you own stock in goes under, for instance, you won’t be entirely sunk if you own shares of other firms — and some government bonds, for good measure.
Diversification is one of the reasons mutual funds, index funds and ETFs are so popular among new investors.
However, some of these funds do come at an additional cost — particularly mutual funds, which are actively managed by a financial professional. That’s why it’s important to check out the expense ratios before making your purchase decision, especially if you don’t have a lot of investment capital to work with.
Do Your Homework
No matter what types of investments you’re most interested in owning or how you go about getting started, research the assets you’re considering, keeping both historical performance of interest rates and current events in mind. You might even consider hiring a financial advisor to help you make your decisions.
Although no investment is a sure thing, putting your money in the market feels a lot less like a harebrained bet when you have evidence and reason behind your choices. Investment advisors can help you assess your risk tolerance and make more informed investment decisions.
Keep Calm When the Market Gets Rough
And finally, keep in mind that investing is a long game, and market fluctuations are an everyday reality. Although it can be tempting to rip your money out of the market as soon as you see a scary headline, if you diversify your holdings and sit tight through the lean times, the market usually corrects itself.
Even taking major recessions into account, the market’s overall growth curve is historically positive — and stashing your cash under the mattress (or even in a traditional savings account) can’t come close to the earnings you can glean through compound interest.
Good luck, new investor!
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.
BEST DEAL UPDATE:
Super-wealthy investors are making some changes to their portfolios for 2019.
BEST DEAL UPDATE:
SPECIAL DEAL UPDATE:
Jim Cramer flags seven long-term trends that are working despite political turmoil, slowing growth around the world and a fairly hawkish Federal Reserve.
BEST DEAL UPDATE:
Investing in commercial real estate can be confusing to new investors—dizzying numbers and jargon can make investors wary. However, investing in commercial real estate is actually easier than you think—and the perks are great to boot. Sound income potential, solid stability, and downside protection against market volatility are some of those perks.
Investing in Commercial Real Estate Doesn’t Require You to Be an Expert
Investing in real estate doesn’t demand you be an expert in real estate This is where sponsors come in. And no, a sponsor isn’t an advertiser. A sponsor is an asset operator who syndicates the funds and makes the deal happen.The sponsor handles anything from funding to managing the investment. They manage the asset. You collect the income.
Commercial Real Estate is a Long-Term Investment
Another upside to investing in commercial real estate is its long-term focus. It protects your downside and is engineered to collect big returns over time. On the flip side, if you’re just looking to make quick buck, real estate might not be the right investment space for you. Plus your money’s locked up for a pre-set contractual period — you can’t just cash out anytime you want.
Crowdfunding Allows Everyday Folks to Own Commercial Property for Under $ 1000
The Jumpstart Our Business Startups (JOBS) Act, signed in 2012, allows everyday investors to own a piece of assets such as the World Trade Center through real estate crowdfunding. There are tons of online marketplaces that give you access to syndicated deals. And if you’re not into that? Well, there’s always REITs.
A version of this story appeared on WealthLAB.
The post Here’s Why Black Investors Should Consider Investing in Commercial Real Estate appeared first on Black Enterprise.
FASHION DEAL UPDATE:
There is more to socially responsible investing than just avoiding stocks that are against your principles, whether it be guns or tobacco or bad environmental practices.
BEST DEAL UPDATE:
The tech giant declined to disclose how much it will invest in Grab, but the start-up said it is on track to raise about $ 3 billion in funds this year and has already secured $ 2 billion from Toyota and institutional investors.
BEST DEAL UPDATE:
BEST DEAL UPDATE:
The social climate has always impacted the art world. Currently, women’s issues are at the forefront of politics and social justice; in turn, the art industry is affected—particularly its women. Research conducted by the National Endowment for the Arts found women artists, who account for 51% of all visual artists, make only $ 0.81 to every dollar earned by their male counterparts. This data matches, eerily, the national gender wage gap reported by the Bureau of Labor Statistics and speaks sorely to the sign of the times.
However, on the flip side of grossing significantly less than men, women are having a profound influence on art sales, breaking records now more than ever. According to the New York Times, “last spring in New York, auction sales records were shattered for the works of 15 female artists.” Among them, artist Cecily Brown’s sale topped the bunch at $ 6.6 million. Of the group, only two women were black—Lorna Simpson and Xaviera Simmons—whose sales came in unsurprisingly lower at $ 350,000 and about $ 30,000.
But even a few black women realizing success at the auction level is a major inspiration for others.
“I celebrated when I read that Lynette Yiadom-Boakye’s portraits of black figures sold for a total of $ 2.5 million last year and Njideka Akunyili Crosby reached $ 3.4 million earlier this year,” expresses Tracy Murrell, an Atlanta-based artist. “I am a huge fan of both artists and to see the work of black bodies by black female artists at that level of the art world is symbolic validation that there is a place in the high-end art world for what I create.”
Traditionally, a lofty auction sale results in an increase of value for a given artists’ work and their visibility as well as the opportunity to exhibit in art institutions and become part of their collection. So this news should have a trickle-down effect: recognition and an uptick in sales for other women artists. At least that is how it worked for white male artists throughout history. However, along with gender disparity, race disparity is reflected in the art market.
Artnet performed an analysis which explores how African American artists fare financially at auctions using the volume of sales. It was discovered black art sales at auctions are on the rise, yet “of the contemporary American artists selling for over a million dollars at auction, a mere one-tenth are black,” and of the top 100, only two are women—Kara Walker and Mickalene Thomas.
The upside is that the disparity makes it a good time to consider a serious investment in women’s art— and particularly black women’s art.
This is where art collectors and enthusiasts can effect change. Aside from the personal financial gains, investing in black art establishes greater market value for an otherwise underrecognized demographic and contributes to the black economy. Lauren Harris, gallery manager and curator for Zucot Gallery explains:
“Investing in art created by black women is something we all should be doing. There are two main reasons: our narratives and our worth.”
“In my 10 years of being in the art world, black women have had the truest and most unapologetic voice personified in their art,” Harris says. “From Lorna Simpson to Kara Walker and more recently Njideka Akunyili Crosby and Simone Leigh, black female artists break the mold, driving ‘cultural shifts’ in the market.”
If you’ve been considering investing in art created by black women, Harris suggests the timing is right:
“Now that artwork by black women are ‘trending’ in the mainstream art world due to high sales at auctions and acquisitions by notable collectors, there can come a time when their work is less attainable. The same way Amy Sherald shot to fame after being revealed as the artist behind former FLOTUS Michelle Obama’s portrait for the National Portrait Gallery, can apply to the many working professional black female artists from all over.”
Harris warns: “Invest now, so you won’t be sorry later.”
The value of art is typically stable; the average annual return on art investments is +7.6%, according to Artprice. And if that doesn’t get your coins twerking, check these five black women artists for motivation:
On Thursday, Oct. 4, Swann Gallery, which is one of the only major auction houses for African American artwork, is holding their autumn auction. This is a fine time to get in on investing in fine art from artists ranging from Thelma Johnson Streat to Elizabeth Catlett. Bidding starts at 2:30 p.m. ET. You can attend in-person or livestream on the gallery’s website.
The post Why Investing in Black Women’s Art is a Power Move appeared first on Black Enterprise.
FASHION DEALS UPDATE: