Investing

Top 5 Investments According to RobinHood App

May 28, 2020 By Tamila McDonald Leave a Comment

As 2019 drew to a close, Robinhood had over 10 million user accounts on its books. Many people flock to the app for its commission-free trades, allowing them to get involved in stock market investing without some of the costs. With so much activity flowing through the company, Robinhood can easily track which investments are popular. Here’s a look at the top five investments, based on Robinhood user popularity (as of May 21, 2020).

1. Ford

Analysts have Ford listed as a solid buy, causing the somewhat low-cost stock to trend upward. Over 848,000 users decided to take a risk on the auto manufacturer, adding Ford to their portfolio or simply holding onto the stock.

Before the coronavirus pandemic, Ford danced mainly between the $8 and $12 marks. Considering its sitting below $6, that may make it look like a bargain to new investors who think the automaker will bounce back.

2. GE

GE has been through its share of COVID-19 ups and down, but that doesn’t mean investors aren’t willing to take a chance on the company. More than 766,000 Robinhood App users have the company in their portfolio.

Currently, GE stock is available at around $6.50. Plus, it’s rated as a strong buy, according to the Robinhood analyst ratings, which may be bolstering its appeal with those who are looking for potential bargains with bounce-back potential.

3. Disney

Disney took some major hits as the COVID-19 pandemic delayed movie releases and led to park closures. However, the company is well-positioned to recover, recently reopening its Shanghai park and making significant strides in Florida. Plus, it still owns valuable properties, including Marvel, and has had success with its streaming service, Disney+.

While a price around $118 might not seem like a bargain, Disney is listed as a strong buy on Robinhood. Plus, the company was significantly higher before the pandemic, coming in near $150. Apparently, at least 550,000 investors think the company has what it takes to weather the storm.

4. American Airlines

Airlines felt the pain when the coronavirus made travel incredibly unappealing, if not completely impossible in some areas. While American Airline’s stock took a tumble (sitting near $9.90), investors seem to have faith that the industry and airline will recover as the pandemic calms.

Plus, the price reduction could make the stock seem like a bargain, suggesting that the travel industry improves in a reasonable amount of time. Over 530,000 Robinhood App users have the company in their portfolio, and the analyst rating has the airline listed as a solid buy.

5. Delta Airlines

Like American Airlines, Delta Airlines saw its stock value tumble in response to the pandemic. Today, it’s considered a strong buy, with a stock price situated near the $23 mark. In total, nearly 519,000 Robinhood App investors agree, adding or keeping the company in their portfolio.

It’s possible investors and analysts believe that the price dip won’t be long-term, and there’s a reasonable chance, though no guarantee, that they will be right in the end. However, it’s mainly dependent on the recovery of the larger travel industry, and only time will tell if or when that will ultimately occur.

Have you invested in any of the stocks above? Do you think focusing on the top 5 is a smart move for new investors? Share your thoughts in the comments below.

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Can You Make a Passive Income With Affiliate Marketing?

May 21, 2020 By Susan Paige Leave a Comment

Everybody loves an extra source of income. Who doesn’t love a passive income? Just imagine you are on a holiday, having fun with your family, spending your hard-earned money on this vacation, and still managing to have a great amount of money at the end of the vacation. That’s cool, right?

This might look impossible as per some people that are not aware of affiliate marketing. But, indeed, affiliate marketing can surely help you earn a decent amount of money if you do it right.

For those who don’t have any idea about affiliate marketing, let’s start with the basics.

So, what is affiliate marketing?

Keeping things brief, affiliate marketing is all about selling a company’s goods and services to another company or individual. The affiliate marketer is like a referral service provider who connects to or more companies or a company with the potential customers.

One of the few things that you need to get started includes a website or a blog and an affiliate program. That’s it! You are good to go.

You believe it or not, that’s how it works in the affiliate marketing world. The idea is to share the revenue in parts. Suppose you are an affiliate marketer, you sell a company’s product or any goods or services and get a commission on every unit sold. So, ultimately you get a portion of the total sales of the brand’s product.

All you need to do is to perform your job well and affiliate marketing will keep reloading your bank account with the passive income you always desired.

While you may find a huge number of blogs and websites showcasing affiliate marketing as an easy way to earn money and become rich overnight, but I must tell you that this is wrong. Things are not that simple too!

There is a lot to learn on this journey before you become a successful affiliate. One of the most important decisions here for you is to decide the commission model of your affiliate marketing business or affiliate marketing program. Commonly, there are two types of commission model, let’s know more about them.

If you are doing it for fun then go for the one-time commission model

The one-time commission model is very simple. The catch is that the more you refer the more you earn From the program. You need to keep promoting the product to the potential customers among your audience from whatever medium you have, for example, your blog.

Such programs run with a referral link or URL. Therefore, when a person purchases a product from the link in your blog, you earn a commission.

For those who want long-term revenue – recurring affiliate program or commission model

If we talk about the recurring commission model, it is made for those who want to do this for a long period. Therefore, you can earn long term passive income from this commission model.

One of the best things about this model is you don’t just get paid for the referrals, you get paid monthly if the customer continues the subscription of the service that you referred. Common examples of such services are web hosting and online courses.

Now, let’s talk about the main thing, money! How can you earn through affiliate marketing?

In the past few years, the affiliate marketing industry is thriving at a steady pace. Many reports and surveys show the progress too. A report by statistica says that the actual spending on the affiliate marketing industry in the U.S. is estimated to reach the $8.2 billion mark by the year 2022. This was about $5.4 billion in 2017 and $1.6 billion in the year 2010.

Also, a report by VigLink discloses that about nine percent of the publishers earned a revenue of more than fifty thousand dollars in the year past few years each. Merchants in the U.S. said that they are making about five to twenty percent of the annual revenue from affiliate marketing.

Here one of the most important factors that matter is your experience as most of the surveys disclosed that almost 60% of the merchants with most revenue, were those who have been in this industry for 5 years or more than that.

Not that you know that all you need is constant traffic and to make engaging content to make people click the link you shared. Therefore, always try to put up fresh content on your website regularly to keep the flow of revenue in your favor.

Don’t forget to choose the best affiliate program for yourself. Popular programs like the forex affiliate programs can really help you start your journey in the best way possible

A big question! How to make a bang on affiliate marketing strategy?

Here is the thing, the beginning will be easy, but you have to work harder along the way to keep generating reasonable revenue from your program. Let’s break things into simple steps to help you understand what makes a lucrative marketing strategy

Plan your audience

The first step is to understand your target audience. You need to understand their choices and preferences. Start with solving common questions like – What are the goods and services they are looking for? What are the goods that you are dealing in and does your audience like it?

Add suitable links on your website

This is a fact that you can add any kind of links to your site or content, but I would suggest you add links that are somehow connected to the content of your website. Don’t go out of context. That’s how you can increase the clicks on your link and improve traffic as well.

See what the biggies are doing

This is an imperative step if you are just a newbie in this game (affiliate marketing industry). See what other individual affiliate marketing programs are offering in their structure. Compare with your program and keep an eye on the rules and regulations imposed by those programs on the members.

The rule is simple, to select the best program, you have to know more about what all are offering. Also, make sure that you select a program that has similar content to what you make, and then only you can earn more money.

Conclusion

Affiliate marketing is a new and popular lucrative way to earn a passive income. However, don’t think that it is not going to be mainstream any time soon. It is already widespread among many young entrepreneurs.

Also, no matter how fascinating it may look, only your time, patience, hard work, consistency and your choice of affiliate program can help you make a satisfactory amount of revenue from your affiliate marketing program.

Is the Stock Market Closed on Memorial Day 2020?

May 20, 2020 By Tamila McDonald Leave a Comment

Memorial Day is on Monday, May 25, for 2020. It’s an official federal holiday, and many members of the American workforce will have the day off. However, because government offices, banks, and other companies close for the holiday, figuring out what is open can be a challenge. Is the stock market open on Memorial Day? Here’s what you need to know before the holiday arrives.

Is the Stock Market Closed on Memorial Day?

While the NYSE and Nasdaq are usually open on Mondays, neither are open on Memorial Day. Additionally, since neither of the stock markets is open on weekends, they will also close on the Saturday (May 23) and Sunday (May 24) before Memorial Day.

If you need to handle stock-related transactions before Memorial Day, then Friday, May 22 is when you need to take care of them. On a good note, the NYSE and Nasdaq have their usual trading hours on the Friday before Memorial Day, so you don’t have to worry about an early closure interfering you’re your transactions.

On typical operating days – Monday through Friday – the NYSE starts the pre-opening session at 6:30 am ET. At 9:30 am ET, the official opening auction begins. The core trading session runs from 9:30 am ET through 4:00 pm ET. Between 4:00 pm ET and 8:00 pm ET, the late trading session is underway.

The Nasdaq has similar hours. The only difference is that pre-market trading starts at 4:00 am ET instead of 6:30 am ET.

If you don’t get everything handled on Friday, May 22, you’ll have to wait until Tuesday, May 26 to finish up your trades.

2019 U.S. Stock Market Holiday Schedule

The NYSE and Nasdaq follow the same holiday schedule. If one is closed for a holiday, so is the other. The only time when one of these markets will close while the other remains operational usually involves a technical issue that doesn’t impact both the NYSE and the Nasdaq.

Here are the U.S. stock market holiday closures, along with the short-day schedule, for 2020:

January 1, New Year’s Day: NYSE & Nasdaq are closed
January 20, Martin Luther King, Jr. Day: NYSE & Nasdaq are closed
February 17, President’s Day: NYSE & Nasdaq are closed
April 10, Good Friday: NYSE & Nasdaq are closed
May 25, Memorial Day: NYSE & Nasdaq are closed
July 3, Day Before Independence Day: NYSE & Nasdaq close early at 1:00 pm EDT
July 4, Independence Day: NYSE & Nasdaq are closed
September 7, Labor Day: NYSE & Nasdaq are closed
November 26, Thanksgiving: NYSE & Nasdaq are closed
November 27, Day After Thanksgiving: NYSE & Nasdaq close early at 1:00 pm EDT
December 24, Christmas Eve: NYSE & Nasdaq close early at 1:00 pm EDT
December 25, Christmas Day: NYSE & Nasdaq are closed

While the NYSE and Nasdaq close on most federal holidays, there are two where the stock markets are open. Neither market shuts down for Columbus Day or Veterans Day.

Additionally, while Good Friday is not a federal holiday, the stock markets are still closed. Some of the short days are also not on the government holiday calendar.

U.S. Bond Market Holiday Schedule

While SIFMA does close on many of the same holidays as the NYSE and Nasdaq, there are also a few others. Plus, early closures for the bond market aren’t at the same time.

Here is a look at the 2020 U.S. bond market holiday schedule:

January 1, New Year’s Day: SIFMA is closed
January 20, Martin Luther King, Jr. Day: SIFMA is closed
February 17, Washington’s Birthday (President’s Day): SIFMA is closed
April 9, Day Before Good Friday: SIFMA closes early at 2:00 pm ET
April 10, Good Friday: SIFMA is closed
May 22, Friday Before Memorial Day Weekend:
May 25, Memorial Day: SIFMA is closed
July 3, Day Before Independence Day: SIFMA closes early at 2:00 pm ET
July 4, Independence Day: SIFMA is closed
September 7, Labor Day: SIFMA is closed
October 14, Columbus Day: SIFMA is closed
November 11, Veterans Day: SIFMA is closed
November 26, Thanksgiving: SIFMA is closed
November 27, Day After Thanksgiving: SIFMA closes early at 2:00 pm ET
December 24, Christmas Eve: SIFMA closes early at 2:00 pm ET
December 25, Christmas Day: SIFMA is closed
December 31, New Year’s Eve: SIFMA closes early at 2:00 pm ET

Overall, SIFMA closes more often than the NYSE, Nasdaq, and the federal government. Barring the days above, as well as weekends, SIFMA is open. The only exception is when an unexpected technical issue occurs.

Do International Stock Markets Follow the Same Holiday Schedules?

No, international stock markets do not follow the NYSE, Nasdaq, of SIFMA schedules. Instead, each one has its own schedule. However, some closure days do overlap.

For instance, the London Stock Exchange (LSE) also closes on New Year’s Day, Good Friday, and Christmas. However, there are several U.S. holidays where the LSE is open.

International stock markets can also close on days when the U.S. markets are open. Using the LSE as an example again, the LSE closes on Easter Monday, but the U.S. markets are open.

Do you ever wish the stock market was open on Memorial Day? Tell us why or why not in the comments below.

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How Much Is Too Much Money in Your Savings Account?

May 14, 2020 By Trey LaRocca Leave a Comment

We have hammered into your brain at this point that you need to be saving. It is far too important to overstate that you have to have some sort of rainy day fund to ensure that you can stay afloat in hard times. For those who develop the skill and discipline it takes to save much more than they will need for an emergency, the location of that money becomes the main point of progress. Once you begin to see your savings go from 3-4 months-worth of expenses to a beginner retirement fund, that money needs to start growing outside of a traditional savings account. Roth IRAs, 401(k)s, mutual funds, and index funds are all places that will see more gains than your bank will give you, and the sooner you start one, the better. So, how much is too much money in your savings account?

Quantity

“Too much savings” is definitely not a problem. The issue comes when you have so much in your regular bank account that you are leaving gains on the table that could be found elsewhere. The point at which this becomes a noteworthy issue is different for everyone. A good rule of thumb is that if you can survive six months on your savings account balance, you have enough. Three-to-four months will serve just as well as justification for putting some cash elsewhere; six months is where I would say things are bordering on excessive. Once you can do that, it is time to start getting some tax-free gains elsewhere. This will ensure that you keep a cushy level of liquidity, but still maximize your wealth accumulation. This is vital in ensuring that you have a comfy retirement.

Quality

The question now is, “where should I put my money now?” Well, here is something you should’ve already been doing: Contributing the maximum amount to a 401(k) or Roth IRA that your employer will match. If you haven’t been doing this, you have literally been foregoing free money. Not to fret, just start doing it now. Not only does your money get matched by your employer, but it also gets withheld tax-free. This lowers your taxable income for the year (yay, lower taxes!). These are 2 separate ways you are already gaining money before the actual retirement account even starts doing its thing; that thing, by the way, is growing. With few exceptions, retirement accounts like these bring great, reliable gains to your money over time. This makes sure that your retirement is as comfortable as possible. Other options for those who want more manual control of their money (after you have maxed out employer match) are index funds, mutual funds, and individual stocks. My recommendation on those is pretty much told in the order they are presented.

What Is the Average Retirement Savings for Those Over 60?

May 5, 2020 By Trey LaRocca Leave a Comment

Saving for retirement is one of the greatest gifts you can give to yourself, but sometime the number in the account can seem discouraging. It is important to keep expectations realistic, and to do so requires some points of reference. While it is not always wise or healthy to compare, it is good to at least know where people your age are. Now, there are many different ways to measure retirement savings, and many different data sets to pull from. Take our numbers with a grain of salt due to these possible variances. We will be looking at the Center for Retirement Research numbers regarding the median retirement balance in different age groups. So, here is the average retirement savings for those over 60.

The Numbers

In people aged 55-64, the Center for Retirement Research found that the median retirement account balance is $104,000. Now, there are a few pieces of context to work out here. First, these numbers are from 2017. Obviously there will be some variance, especially after the recent coronavirus crisis causing many to tap into savings they probably meant to leave untouched. Additionally, this does not mean $104k is optimal. Ideally you will have much more than this, as the idea is it is the only money you will have or need in retirement. This brings us to the last point, that these numbers aren’t indicative of the entirety of these subject’s retirement savings. This only counts 401(k)/IRA balance, so it doesn’t include any assets outside of these. So, if you hold property, cash savings, personal brokerage accounts, or anything else that isn’t included here, you want to factor that in.

What If I’m Not Over 60?

The numbers for people who are a little younger break down as follows:

Ages 35-44 have an average account balance of $37,000
Ages 45-54 have an average account balance of $80,000

What do these numbers mean? Firstly, it shows that retirement savings clearly see an uptick later in life. This is for a few reasons, one of which being awareness. You can get ahead of the pack just by thinking about it earlier and life and setting aside as much as you possibly can. The other, though, is that income tends to grow as you age, and that can’t always be helped. Again, these are great numbers to use when comparing just your IRA/401(k) balance. This should not be how you decide what your total retirement savings should look, as it isn’t a wholesome look. As long as you take these in the right context, they can help you stay educated and motivated.

Here Are 6 of the Best Roth IRA Calculators

April 23, 2020 By Tamila McDonald Leave a Comment

Roth IRA calculators are excellent financial planning tools. They can help you estimate the value of your account and see how it can grow over time. Since knowing what your Roth IRA will be worth is critical for determining in you are on target for a comfortable retirement, having a great calculator available is important. With that in mind, here are six of the best Roth IRA calculators around and an overview of their purpose.

1. Bankrate

The Roth IRA calculator at Bankrate is a solid option for retirement planning. It can estimate the value of your account at the time you retire, using a range of factors to give a better picture. With this one, you can even examine your taxable savings by plugging in your marginal tax rate.

2. Nerdwallet

Nerdwallet also has a robust Roth IRA calculator. But unlike the Bankrate one, which simply asks you to fill in a group of fields, the Nerdwallet version walks you through the process. That makes it, comparatively, more user-friendly.

3. SoFi

Another IRA calculator that is incredibly simple to use is available through SoFi. Users answer a few basic questions and get an overview of the kinds of IRA they can use. It clearly shows the maximum allowed contribution based on the input data, which can be beneficial for retirement planning.

4. Voya

If you want to see if a traditional or Roth IRA is a better option for you, this Voya calculator can help you figure it out. After entering basic details, you can review your estimated account totals at retirement as well as an after-tax comparison. It’s a simple way to explore if one approach may suit you better than another.

5. Schwab

Another comparison calculator, the Schwab version actually has fields for both the user and their spouse. This can be helpful for married couples, as it allows both income sources and spouse ages to be factored into the equation.

6. Fidelity

If you are trying to figure out if you should convert a Roth IRA into a traditional, SEP, or Simple IRA, this calculator by Fidelity can help. After going over some simple questions, users can review an analysis that shows the tax implications of the decision. That can be incredibly important for retirement planning, giving users information that can help them avoid a net loss.

Are Roth IRA Calculators Accurate?

It’s important to understand that, while the calculations made will typically be accurate, Roth IRA calculators don’t guarantee results. Some of the data is based on assumptions, such as your anticipated rate of return or expected contributions overtime. No one can be 100 percent certain when it comes to those factors. It always involves a guess.

However, that doesn’t mean a Roth IRA calculator isn’t a great planning tool. It gives you some insight into how much you could have set aside for retirement, and that is helpful. It’s just important to remember that no one knows what the future holds. Your account may end up higher or lower in the end, depending on unforeseen factors.

If you want to make sure you can meet your goal, be conservative when performing the calculations. Assume a slightly lower rate of return, for example. That way, you incidentally create a buffer in your plan, increasing the odds that you’ll hit your target before you retire.

Do you know of another amazing Roth IRA Calculator? If so, tell us about it in the comments below.