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Emoji Finance Friday©: Capital Gains Tax

Let us break this down: 1. You buy 100 shares of a stock 2. Stock takes off and appreciates 3. After some time you sell the stock 4. The US Government arrives 5. Takes a share of your profits 6. Equals Capital Gains Tax Now, lets piece it together: first, you buy 100 shares of a stock and it makes a profit for you over some time, later, you sell the stock and the US Government comes in and takes a...

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Emoji Finance Friday©: Derivatives

1. You buy a security 2. This security follows a currency 3. Soon when that currency goes up 4. The value of your security will go up 5. This all equals derivatives Let’s break this down You are searching for alternative investments and you think about getting into this security that follows the price of a currency, so when the currency value goes up the security itself will go up as well. As well...

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Emoji Finance Friday©: 529 Plan

Let's break this down Two people fall in love They get married Have a baby Add college All equals a 529 Plan Now let's piece that together, when two people fall in love and have a baby it is smart to open up a “529 Plan” for their college education. With the cost of college rising 5-7% annually, we can expect college to be $250,000 and up in the next 10 years. There has been a major push to try to...

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Emoji Finance Friday©: Rule of 72

1. You have a question 2. About how long it will take your investments to double 3. You ask your financial professional 4. Who shares the idea of 5. Dividing 72 by the percentage of the return 6. This all equals this idea called Rule of 72 Let us piece this together You have a question on how to figure out how long it will take for your money to double in your current investments. So you ask your financial...

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Emoji Finance Friday©:Bitcoin

Let us break this down 1. You have an idea to get into cryptocurrency 2. You get on your computer 3. Get a unique private key 4. Start mining for Bitcoins 5. On something called the “Blockchain” 6. Your mining was successful 7. Soon you receive coins 8. This all equals Bitcoins Now let us piece this together. You have been hearing all about this crypto-currency business and are interested in owning...

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Emoji Finance Friday©: Dividend Reinvestment Plan

Let us break this down 1. You buy a stock 2. Some time passes 3. Your stock yields cash dividends 4. You decide to drip that money over 5. And purchase more of the same stock with the dividends Now let us piece this together; first you buy a stock like IBM, some time passes and IBM yields its yearly cash dividends! Now instead of taking the cash out of the market you decided to “drip” the money over...

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Emoji Finance Friday©: 50-30-20 Rule

1. You receive a paycheck monthly 2. You start to think, how you should be using that money 3. You consult with a professional 4. Who tells you about the idea of the 50-30-20 5. 50% goes to living, eating, drinking and going out 6. 30% goes to rainy day fund 7. 20% goes to investments 8. You feel like a smart nerd 9. This all equals the 50-30-20 Rule Let us break this down You receive money monthly...

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Emoji Finance Friday©: Market Efficiency

1. You hear some news come out about a company on the market 2. You tell your news to your friend, who in returns tells more people 3. Researchers look into the company and they start to notice the price swaying based on the news 4. Finally, you realize that all the information available to you is having a direct effect on the market price 5. And the stock price goes up and down based on the news out...

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Emoji Finance Friday: REIT

Let us break this down 1.A bunch of investors give money to an organization 2.Who uses that money to purchase buildings 3.On a certain date, money is passed back to the investor 4.This all equals a REIT Now let us piece this together; first, a bunch of investors give money to an organization, (like crowd-sourcing). Now that organization uses that money to purchase buildings, usually in a specific area...

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Dow Jones is Feeling "22",000

The market was feeling like Taylor Swift this morning, hitting “22”,000, maybe it will celebrate tonight by dressing up like a hipster? The Dow toppled its highest mark ever and the Trump administration is taking credit for the recent hike even though they claimed that the market was in a bubble when it was surging under Obama. Let's take a quick step back and explain how the Dow Jones broke another...

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Emoji Finance Friday©: Municipal Bonds

Let us break this down 1. You give some money to invest in municipal bonds 2. This money is invested in local government projects 3. Like the train system in Santa Monica 4. Some time passes 5. You receive yield payments back from your bond 6. You don’t have to pay taxes on your yield 7. #moneyface 8. This all equals a municipal bonds Now let us piece this together; first you give some money to invest...

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Emoji Finance Friday©: Large, Mid, and Small Cap

1. You have a company that is valued over $10 Billion in the market 2. You have a company that is valued at over $2 Billion but under $10 Billion in the market 3. You have a company that is valued at anything under $1 Billion The Keys To Understanding The value is determined by something called Market Capitalization; this is calculated by multiplying the number of shares that are out in the market...