Investors Brew

Estate Planning Will, trust, and estate planning are critical components of financial planning , especially for those who have assets and dependents. Estate planning involves creating a plan to manage your assets and distribute them after your death or incapacitation. In contrast, a will and a trust are legal documents that provide guidelines on how to manage and distribute your assets. In this blog, we will explore the differences between a will, trust, and estate planning, and the advantages and disadvantages of each. What is Estate Planning? Estate planning involves creating a comprehensive plan that outlines how your assets will be managed and distributed in case you become incapacitated or after your death. This includes financial assets,

Securing your Kids Future As parents, we all want our children to have a bright future, full of opportunities and financial security. However, with the rising cost of education and the uncertainties of the job market, it can be challenging to ensure that our children have the financial means to achieve their dreams. Fortunately, there are several qualified investment accounts and financial products that can help you protect your child's financial future. IRA and Roth IRA An Individual Retirement Account (IRA) is a tax-advantaged account that allows you to save for retirement. There are two types of IRAs: Traditional and Roth. With a Traditional IRA, you contribute pre-tax dollars, which means you won't pay taxes until you withdraw the money in retirement. With a Roth IRA, you contribu

Trending trades using options Trading a trending market using options can be a profitable strategy if executed correctly. Here's an example trading strategy using SPY (SPDR S&P 500 ETF) to trade a trending market using options: Identify the trend Before you start trading options, you need to identify the trend in the market. If the market is trending higher, you'll want to consider bullish options strategies. If the market is trending lower, you'll want to consider bearish options strategies. Buy call options If the market is trending higher, one strategy is to buy call options on SPY. Call options give you the right to buy SPY at a certain price (strike price) on or before a certain date (expiration date). If SPY's price continues to rise above the strike price, your call options will become more valu

Recession Trades Using Options Recession fears can cause significant market volatility, which can present both risks and opportunities for options traders. Here's an example trading strategy using SPY (SPDR S&P 500 ETF) to trade recession fears using options: Determine your outlook Before you start trading options , you need to determine your outlook on the market. Do you think a recession is likely, or are you more bullish on the economy? Your outlook will determine which options strategies you should consider. Buy put options If you're bearish on the market and believe a recession is likely, one strategy is to buy put options on SPY. Put options give you the right to sell SPY at a certain price (strike price) on or before a certain date (expiration date). If SPY's price decreases below the strike price, your put options

Trading Volatility Volatility is a measure of how much an asset's price fluctuates over a certain period of time. It's a key concept in trading because the more volatile an asset is, the more potential there is for profit, but also for loss. Options are a popular way to trade volatility, allowing traders to profit from fluctuations in price without having to own the underlying asset. In this blog, we'll explore the basics of trading volatility using options. What are options? Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price (strike price) on or before a specific date (expiration date). There are two types of options: call options and put options. Call options give the buyer the right to buy an underlying asset at the strike price, while put option

Volatility Primer Volatility is a term that describes the degree of variation of an asset's price over a given period of time. It is a statistical measure that indicates the degree of uncertainty or risk associated with an asset's value. In financial markets, volatility is a critical parameter that affects pricing and risk management decisions. Types of Volatility: There are two main types of volatility: historical volatility and implied volatility. Historical volatility is the actual volatility of an asset over a specific period. It is calculated by measuring the standard deviation of the asset's price changes over the period. Implied volatility, on the other hand, is the expected volatility of an asset in the future. It is inferred from the price of options on the asset. Pricing Volatility: Volatility can be pri

Start Early When it comes to investing, there are many risks involved, and one of them is the risk of low yielding cash in your portfolio. Cash is considered to be a low yielding asset as it usually doesn't generate any significant returns, and over time, inflation can erode the purchasing power of your money. In this blog, we will discuss the risks of having low yielding cash in your portfolio, the benefits of starting investment early on, the power of compounding, the benefits of having a long-term horizon, and the risks of not investing. Benefits of Starting Investment Early On Starting to invest early on can have a tremendous impact on your long-term financial health. By investing early, you can take advantage of the power of compounding, which is the ability of an asset to generate earnings that are reinvest