Investing for first-time investors can be pretty overwhelming. There are so many variables out there and they can be pretty confusing. There are different retirement accounts, investment accounts, some account let you invest in different things, etc. But perhaps the most overlooked item is not knowing what your tolerance for risk is. And not only that, making sure your investments actually reflect how much risk you are willing to take on.
When it comes to your own personal finances there are no dumb questions; however, many people are intimidated by the industry jargon, or things they don’t know much about, and thus are very self-conscious to not ask questions for the fear they may come off as unintelligent. I’ve made it my mission to make my company as inviting as possible because I understand how complicated many of these topics can be. So, today’s post is about one of the fundamental building blocks for personal finance. To make this as simple as possible, this post is part dictionary, part examples. The concept is the difference between a stock and a bond.
Before starting Melby Wealth Management, I was a business manager for 10 years. I helped those in the entertainment industry do everything from paying their water bill to getting a mortgage to creating budgets for arena tours. I saw how an artist’s business impacts their personal life and how their personal life can impact their business. In those 10 years, I learned a thing or two on what works and what doesn’t. I wanted help put that knowledge into some sort of guide to help those artists who are starting out. They know where they want to go, but aren’t quite sure how to get there. This eBook is meant to help them out.
The purchase of your home could easily be one of the largest transactions you will make in your life. Buying a home can be an emotional process-- one where you are tempted to think more about what you want right now and therefore lose sight of what is best for you and your family in the long run. The decision to choose a 15 year mortgage or a 30 year mortgage may end up affecting your personal finances more than any other decision you'll make. Unfortunately, many people don’t look much further than the larger monthly payment of the 15 year mortgage, so they instinctively choose the 30-year mortgage. This is a decision that can cost them hundreds of thousands of dollars.
As you likely have heard, Uber is having its IPO (Initial Public Offering) on Friday, May 10th in what is being hailed as the largest IPO in history. There is a ton of excitement and hype surrounding the IPO. It’s even likely that you have bought into some of this excitement. After all, you have probably used the service and heard of the people who are going to make a killing because they invested in Uber during the early stages. But is this something you should invest in?