Investment and Finance

Yes. As long as you replace the funds within 60 days, you can withdraw the funds and not be taxed or be subject to the 10% penalty if under age 59 1/2 years old.

I believe adequate insurance coverage is a key part of a good financial foundation. That said, you should also check with several advisors on how to get sufficient coverage at the lowest cost. Figure in your long-term objectives. For example an inexpensive 20-year level term life insurance policy might be a much wiser choice than an expensive whole life policy.

Over the long-term, a diversified portfolio should outperform a portfolio which is too narrowly spread. Each type of investment performs differently within the same business cycle. Some investments in the mix might do very well and make up for the ones which do not. If you were invested in just one sector and it performed poorly, then your entire portfolio suffers.

Some reasons are greed, impatience, lack of goals, and unsuitable investment strategies which are overly leveraged. Other reasons include out of date publications or relying on out of step experts, as well as failure to understand or take risks.

Usually the late saver never catches up, even if he earns more income and saves more later. The benefits of compounding significantly helps the early saver.

Some steps you should consider include (1) match the fund objective and risk level with the investor’s goal; (2) find the top funds that are the best on performance, fees and expenses, stability, and management; (3) determine other factors which might affect future performance, such as market trends and outlook; and (4) investigate any soon-to-be issued dividends for capital gains, and consider purchasing the shares after that date to avoid taxes.

REIT stands for Real Estate Investment Trust, which is a publicly traded closed-end investment company that invests in a managed, diversified portfolio of real estate or real estate mortgages. The income is tax-free to the trust as long as it meets certain requirements. Like mutual funds, REITs are conduits through which earnings pass to shareholders. REITs are readily sold on the New York and American stock exchanges and thus are much more marketable than other types of real estate investments. REITs offer a good way to invest in real estate, but the investor and or his advisor should carefully screen for performance, stability, fees, costs and outlook.

SIPC stands for Securities Investments Protection Corporation and insures each account up to $500,000 for stocks and funds and $100,000 for cash. Many brokerage firms carry additional insurance.

Price Earnings Ratio is the price of the stock divided by the earnings (usually projected) per share.