Howdy Wall St. Willy! In the newspaper I read about diversification. What is diversification anyway? Diversification is investing money in different things instead of investing all of your money in just one or two things. Why would I need diversification? You need diversification to reduce the risk of losing money or getting negative returns. Well, who …
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Howdy Wall St. Willy! Sometime ago, we talked about asset classes, and when we talked about that, you said something about portfolio rebalancing. But what is portfolio rebalancing anyway? Portfolio rebalancing (or portfolio re-balancing) is buying and selling securities from different asset classes to maintain the asset allocation that’s right for you. Well, when should …
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What is Foreclosure? Foreclosure is a legal process where your home is put up for sale by the lender. It happens when your home is used as a collateral for a mortgage, but you default and aren’t able to pay back. Then the lender can foreclose your home to recoup the remaining loan amount with …
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Howdy Wall St. Willy! My friend went to get a mortgage to buy a house but the bank that was lending the money to him asked for a down payment. So, what is a down payment anyway? A down payment is money that you pay upfront when you take a loan. For example, you usually …
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Howdy Wall St. Willy! On TV I heard about a portfolio but, what is portfolio anyway? Everything you invest in, is collectively called your portfolio. For example, if you have invested in stocks, bonds and real estate, together they form your portfolio. But, how do I decide what’s in my portfolio? This depends on your …
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Howdy Wall St. Willy! Earlier you talked to me about a mortgage. But I want to know about the different kinds of interest on a mortgage. Can you tell me about that? Of course, I can. The different types of interest for a mortgage are mainly fixed interest or floating interest. Floating interest is also …
Read MoreComparison: Mortgage Interest Rate – Fixed vs Floating / Adjustable (ARM)
Howdy Wall St. Willy! Sometime ago, when you talked to me about asset classes, you mentioned asset allocation. But what is asset allocation anyway? Asset allocation is deciding how much of your money to invest in different asset classes. But why do I even need asset allocation? You need asset allocation to achieve diversification so …
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Howdy Wall St. Willy! My friend Daniel asked me about a Mortgage. But what is a mortgage anyway? Well a mortgage is a loan you take to buy a home. Well, can I get more money in a mortgage than what the home is actually worth. So like, if my home is worth $100000, can …
Howdy Wall St. Willy! Some time ago, on TV, I heard about an asset class. But what is an asset class anyway? An asset class is a group of assets in which you can invest your money. Everything within a specific asset class also shows similar traits. What do you mean by similar traits? And …
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I heard my parents wanted to do real estate investing. But what is Real Estate investing? Real estate investing is where you invest in immovable property, like a house. Is real estate investing only in houses and apartments? No, that is one kind of real estate – it’s residential real estate. But real estate …
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