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Tip of the Day Consolidate Your Loans

Consolidate Your Loans - No matter how many loans you have, they are generally all sitting at different interest rates, so the trick to saving money is to shop around...

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Loads

Definition: Loads are sales charges issued by the mutual fund.  If you pay the charge up front, it's called a "front end load."  If you pay it when you sell your shares, it's called a back end load.

TeenAnalyst Advice: As a young investor myself, I stay away from mutual funds with sales charges.  A mutual fund with a front end load of 3% means that for every $100 you give them, only $97 is invested.  It might seem like you're only losing $3.00 but if you keep that money invested for 50 years, it'll end up costing you $353 in lost compounding!*

Most mutual funds today are referred to as "no-load" funds because they don't charge these loads.  I recommend you stick with one of those.

*Assuming 11% annual rate of return.

 

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Definition of the Day Margin Trading

Margin Trading - Margin Trading is a brokerage account that allows the investors to buy securities by borrowing a portion of the purchase price. The National Association of Securities Dealers (NADD), in the New York Stock Exchange (NYSE), and the lending brokerage firm, governs margin accounts. Stocks purchased in two...

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