What Are Index Funds? Index funds are mutual funds or exchange-traded funds (ETFs) that passively track the performance of a benchmark index. Examples include the S&P 500, the Russell 3000, and the Russell 2000. Index funds often have lower expenses than actively managed funds because of their passive nature. An index is a sampling of stocks or bonds that represent a certain segment of the overall financial markets. What Are the Benefits of Index Funds?...

The numbers show consumer prices (especially for gas and groceries) are currently winning in their tug-of-war with wages. Despite a hot job market where pay increases are common, inflation has eroded consumer purchasing power. The inflation rate rose to 8.5% in the 12 months through March, the most since 1981. It’s worth noting that the sharp spike in inflation-adjusted wages early in the pandemic was the result of jobs lost, not pay raises....

Here’s what you need to know about how to respond to an interviewer asking about your expectations from a supervisor—along with what not to say. What the Interviewer Wants to Know By asking this question, interviewers will get a sense of your work style, along with how you prefer to interact with supervisors. You can see why this is useful information for a supervisor: If you expect a very hands-on supervisor, but the company seeks employees who are self-directed and figure out solutions independently, you might not be a good fit....

LWA-Dann Tardif / Getty Images What Is a Health Savings Account? An HSA is a fund that certain people can set up in order to pay for their future health care expenses. To be eligible to create an HSA, you must be covered by a high-deductible health plan (HDHP). HDHPs often cost less than standard health plans, so you have the option of using the premium savings to fund an HSA tax-free....

If you decide to lease, consider whether a high-mileage lease could be right for you. Buying vs. Leasing There are advantages and disadvantages to both buying and leasing a new vehicle. The right choice depends mostly on the individual’s personal tastes and driving style. For example, if you like the idea of driving a new model every two or three years or so, a lease is likely your best option....

Car repair insurance, also called mechanical breakdown insurance (MBI), covers breakdown-related repairs when your manufacturer’s warranty does cover them—for example, after it expires. The breakdown must not have been caused by a car accident. Unless you buy a new car with a defective part, you probably won’t face major repairs during the first few years of ownership. Depending on your annual mileage, MBI coverage could overlap your factory warranty for three years or more, at least on major systems such as the powertrain....

IT outsourcing may be seen as controversial when jobs go to IT workers in other countries instead of those within the U.S. These components include programming, application development, and technical support. Other examples are cloud computing and software-as-a-service (SaaS). Hiring freelancers on a job-by-by basis is also an IT outsourcing practice. Globally, IT outsourcing is a $92.5 billion business. A 2016 Deloitte survey found that 72% of businesses outsourced some or all of their IT functions....

All of the above may be true, but there’s much more to it. Every individual who uses a credit card should be familiar with the changes brought in by the CARD Act. Here is an overview of some of the most significant changes by category. Interest Rate Advance Notice of Rate or Other Fee Increases Credit card issuers are now required to send at least a 45-day advance written notice of an interest rate increase or other significant change such as a higher fee or finance charge....

The law limits how much credit card issuers can charge for a late fee. As of Jan. 1, 2020, issuers can charge up to $29 the first time you’re late or up to $40 if you’ve been late on your payment more than once within the previous six months. (The 2019 maximums were $1 less.) Furthermore, the late fee can’t exceed the amount of the violation. For example, if you were late on a $10 minimum payment, your late fee can’t be higher than $10....

E-Business Basics In a tech-driven world, it might be tough to tell which businesses are truly e-businesses. Perhaps the best way to understand e-businesses is with the help of examples: Email marketing to existing and/or prospective customers is an e-business activity. It electronically conducts a business process—in this case, marketing. A company that builds and sells an online system that tracks inventory and triggers alerts at specific levels is an e-business....

Neither CDW nor LDW will fully spare you from the financial fallout of a major car accident, but they can help in other key ways. How Do CDW and LDW Waivers Work? You won’t be held accountable or you’ll have limited liability for any loss or damage to a rental car if you purchase a waiver. That can be very helpful if you find yourself in an accident while driving a rental car, regardless of who’s at fault....

Between 1928 and 1966, the S&P 500—a group of 500 of the largest stocks by market-capitalization—rewarded investors with 9.25% average annualized returns. From 1967 to 2006, investors enjoyed an 11% average annualized return. But just in case that makes you giddy with enthusiasm, S&P 500 average returns were only 7.1% between 2007 and 2018. Stocks Tend To Grow Over Time Much like a credit card given to you by a bank with the expectation of interest payments, you give money to someone, expecting a return on your investment....

A Typical Example of Buying Call Options Your favorite stock (FAVR) is currently $42.50, and you love its prospects. You just “know” that FAVR will be trading above $50 per share fairly soon. Based on that anticipation, you open a brokerage account and buy 10 FAVR call options. They expire in 90 days and are struck at $50 (i.e., the strike price is $50). You can hardly wait to see the money roll in....

Michael then joined Stone & McCarthy Research Associates (acquired by Oxford Economics in 2016) in Princeton, New Jersey, where he published research based on the interaction between economic, monetary, and macro market forces for the firm’s sophisticated client base of central bank representatives, economists, hedge fund managers, and traders. Michael then became a member of Cantor Fitzgerald’s Debt Capital Markets Derivatives Sales Team, performing quantitative technical analysis for the firm’s proprietary trading desk located in Greenwich, Connecticut....

If you plan to apply for small business loans or seek funding from investors, it’s important to have an executive summary that makes a solid first impression. Crafting a well-written summary begins with knowing which mistakes to avoid. Writing Your Executive Summary Before Other Parts of the Business Plan An executive summary is meant to sum up the main takeaways of the business plan. Focusing on writing an executive summary before you’ve outlined the rest of your business plan can be a mistake if you’re not able to summarize the business accurately....

What can you really do with a mobile insurance application? Well, depending on the company and the particular application, quite a lot actually. You can use you mobile insurance application to take care of claims reporting, handling and processing; making policy payments, policy changes and in some cases, you can even receive an insurance quote via your mobile insurance application. Here is a little more in-depth detail about some of the services offered through mobile insurance applications....

These money-saving hacks and tips may help you save money now so you can succeed financially well into the future. Use Apps to Spend Less and Save More You use your phone for everything else, so why not use it to save money? These apps can make it easier for you to spend less at stores where you shop frequently, both in-person and online: Ibotta: With Ibotta, you can earn cash back on everyday purchases you make online and in-person for free....

As the chart below shows, 19.1% of homes for sale were reduced in price at some point in the past four weeks, the most for any four-week period since October 2019, according to data from real estate company Redfin. The data shows higher borrowing costs are starting to have an impact on home prices that have soared during the pandemic, hitting record high after record high. Mortgage rates are over 2 percentage points higher than they were a year ago, turning off would-be buyers facing monthly payments that are hundreds of dollars bigger....

Stock Funds Stock funds focus on corporations that are publicly traded on one of the stock market exchanges. Some mutual funds invest according to the company’s size. These are small, mid, or large-cap funds. Others invest in the type of company. Growth funds focus on innovative firms that are rapidly expanding. Value funds focus on companies that others may have overlooked. Similarly, high-tech funds may also have a lot of growth companies....

When lockdowns triggered by the threat of catching the contagious virus sent unemployment rates to unprecedented levels, it also triggered several massive rounds of government assistance, some of which went to most of the country, not just to people who were out of a job. That, combined with fewer opportunities to travel, eat out, and otherwise spend, led to the surge in the savings rate. But as the economy has recovered, these relief and economic stimulus measures have wound down, and in September, the savings rate fell to typical pre-pandemic levels for the first time because people spent more and took in less than in August....