Sentences with phrase «risks than a cash»

Investing in the stock market involves more risk than Cash ISAs, but you can balance your risk versus reward with the wide range of investments we offer.

Not exact matches

When Alexandre Pestov, a strategic consultant and research associate at York University's Schulich School of Business, compared buying a two - bedroom Toronto condominium to renting it over the past 25 years, he found that the renter ended up $ 600,000 richer than the owner if he invested the spare cash in low - risk bonds.

But here's a caveat: if you're the owner of a growing company that has unpredictable cash - flow patterns and sometimes - insatiable capital needs, the risks of a volatile stock market may be more than you can handle right now.

It's a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5 - 10K, rather than 100K), and most of the equity offerings (and all of the debt offerings) provide monthly or quarterly incomes.

These rates will vary by lender, term, and risk, and may be lower than other options such as merchant cash advances (or credit card advances).

After all... How much risk is there if you could take a company private for way less than the amount of cash it has in the bank, cease operations and pay out the cash as a dividend?

For passive investing I think Lars has it about right, but I know many investors (including myself if I invested passively) who would add in cash to reduce risk rather than just tilt between stocks and bonds, both of which are volatile.

[6] However, the cash rate is not a perfect substitute for BBSW, as it is an overnight rate rather than a term rate, and doesn't incorporate a significant bank credit risk premium.

Again, if people don't like risk, mix in some bonds (but no more than 10 % if under 35), but the inefficiency of cash still holds.

Instead of keeping 20 % in cash, thereby reducing expected risk to 12 %, the investor could move into 10y government bonds with a higher return than cash and even a little bit of negative correlation with equities.

If instead you walk along the efficient frontier you can reach the same expected risk level but with a higher expected return (or alternatively the same expected return but lower risk) than the portfolio with emergency cash.

Madhavan: For us, geopolitical risks are more about trapped cash than political stability.

Often, evaluating a firm via a discounted cash - flow model and re-engineering its stock price can provide a better understanding of a company's investment potential on a risk - reward basis than even the most clearly written prose.

The value of the equity risk premium (the higher returns from owning stocks rather than bonds or cash) has been in -LSB-...]

If you will not need the cash in the next 5 years, perhaps it makes more sense to take more risk than someone who will need the cash in the next 3 - 5 years.

A customer making charges for a vacation may have a different risk profile than someone charging their groceries, or maximizing cash advance limits on the account.

Risk of investing lots of cash that realizes a much smaller gain than you could get by investing the same amount in an IRA or 401 (k)

Bonds are usually seen as less risky than stocks, but still carry some level of risk compared to cash holdings.

But just keep in mind that the stock market has a lot of ups and downs, and the risk of loss is much higher with stocks than with other asset classes such as bonds or cash.

But cash - out refinancing also has one major downfall: By binding your unsecured debts to your home, you've compromised your home's equity and have a higher risk of going «underwater» — having a house that is worth less than you owe the bank.

If you are moving from cash into the new portfolio, I am concerned that you could be taking more risk than you expect.

If I had the cajones, I'd go short in a heartbeat, but the market can stay irrational longer than you can stay solvent, and there's still the risk that some cash - rich tech firm decides to throw a boatload of cash at it in an acquisition.

I'm not losing any sleep over it, though... there are bigger things to worry about, my personal broker is well - capitalized, and I have less than $ 100K at risk in cash, and that is in a money market fund.

If you don't have the full purchase price in cash, you'll need financing which is more complicated than a principal residence because lenders see them as higher risk.

They are not an alternative to cash, but can offer higher interest rates than cash if investors are willing to assume some risk.

Nanny decided that taking some risk made more sense for her charges than investing in cash.

This gives the cash account in VUL policies the potential for greater returns than a typical whole life policy by investing in equity - linked investments, but also makes them subject to greater risk due to the volatility associated with the stock market.

If one compares the market timer's return to that of a portfolio of stocks and cash weighted to have the same standard deviation as the market timer's portfolio, the result is that the market timer must be correct 74 % of the time in order to perform better than the passive portfolio of the same risk.

If we invested all of our cash into a single company, even one with seemingly «low» risk, we will likely generate returns that are significantly different than the market's performance — for better or worse.

However, if you operate on cash rather than credit card, high risk personal loans may be the only method you have to obtain cash when you need it.

Inflation risk Inflation causes tomorrow's dollar to be worth less than today's; in other words, it reduces the purchasing power of a bond investor's future interest payments and principal, collectively known as «cash flows.»

I'd probably opt to contribute to TFSAs rather than paying down your rental property mortgages if your cash flow is sufficient and if your risk tolerance allows it, Jackie.

Because reserve cash requires limited liquidity, it can be invested over a horizon of 6 — 12 months, thereby capturing incrementally higher yields and returns than money market funds, while taking on only slightly greater risk and keeping a focus on preservation of principal.

Even if prevailing rates at the time of re-investment are lower than the previous bond was returning, the smaller amount of reinvestment dollars mitigates the risk of investing a lot of cash at a low return.

And it's not as risk averse as it appears with so much in cash / bonds since many of its investments are much riskier than the S&P 500.

Rather than an educational experience, practice accounts are a little like play - money sessions at Las Vegas, where gambling novices can learn to play casino games without risking any real cash.

Rather than miss premium payments and risk the policy either lapsing, eating away at your cash value, or being changed to a reduced paid - up policy, choosing to sell it might be the best route for your specific circumstances.

If they are then you make significantly more than the 2 % / year annualized return that cash or bonds pay, while taking little equity risk.

Since you are simply replacing a mortgage that you have already been making payments on, this is considered the lowest risk of the 3 types of refinances and therefore will typically have lower interest rates than equivalent cash - out or debt consolidation refinances and follow similar Loan - To - Value requirements to purchase transactions.

The risk that interest rates will fall causing the cash flows on an investment, assuming that the cash flows are reinvested, to earn less than the original investment.

If you have no savings, or have less than the recommended 3 - 6 months» worth of cash in the bank, you are at greater risk of bankruptcy.

If the answer is yes, then you have a higher risk tolerance and may be more comfortable with a larger mix of stocks than bonds or cash.

You can use it anywhere, and the cash deposit you need to open the card reduces lending risk, making them easier to qualify for than unsecured accounts.

Other than the risk associated with a margin account, stock purchases are fundamentally the same only you're allowed to purchase more than you have cash on hand.

While I think there is a lot of long - term value in the company, it continues to use, rather than generate, cash and thus I'm not so eager to hold it if we enter a down market phase (or, «risk off» period, as they like to call it nowadays).

However, if he jumps from job to job, or if he barely qualified for a mortgage because of a lower credit score, lending him cash to purchase a house has more risks than benefits, and there's a chance that he won't pay you back.

Depending on your comfort level, the idea of choosing fixed income other than government bonds / GICs / cash has some appeal (especially with historically low gov» t bond yields) but just be sure you understand the products you are buying, the inherent risks, the embedded options, the liquidity, the seniority of the debt.

This bank has run into a number of problems related to sub-prime loans so rather than continue to pay out the normal dividend and risk running out of cash, the company decided to decrease the amount of dividend.

Because it involves great risk to the lender, even greater if there are no credit checks done before getting your cash advance to you in an hour, there is more interest charged on a cash advance than for a traditional payday loan or a bank loan.

A HELOC poses less risk to the lender than an HEL because the total value of the equity is not cashed out all at once.