Timing is biggest factor when saving for home
Motley Fool
Q: I’m saving for a down payment on a home. How should I invest that money? — C.S., Kinston, North Carolina
A: It depends. If your home purchase is many years away, your money is likely to grow fastest in the stock market, perhaps via a lowfee, broad-market index fund (such as one tracking the S&P 500) that delivers roughly the market’s return. The stock market can be volatile over the short run, though, so if you expect to buy your home in, say, five or fewer years (or 10, to be very conservative), avoid stocks.
Keep short-term dollars invested in safer places, such as CDs or money market accounts or bonds, to protect your principal. Learn about the best savings rates, credit cards, mortgages and more at theascent. com
Q: What does it mean if a stock market halts trading in a particular stock? — G.D., Madison, Indiana
A: A trading halt can be imposed when there’s some big news coming out about the company, such as a merger, a product recall or the dismissal of the CEO. It often lasts about an hour or less and is meant to give investors a little time to hear and digest the news. Halts also occur if there’s a big imbalance between buy and sell orders.
Another kind of trading halt involves the entire stock market shutting down. That’s called a “circuit breaker” or “trading curb,” and it’s triggered by extreme volatility. On the New York Stock Exchange, for example, if the S&P 500 index drops by 7 percent or 13 percent between 9:30 a.m. and 3:25 p.m., trading will be halted for 15 minutes. If there’s a 20 percent drop, trading will stop for the rest of the day.
Fool’s School:
If You Lose Your Job...
It happens to many of us, and often at an unexpected time. Whether you were fired for cause or fell victim to a recent round of layoffs, finding yourself out of a job is a tough spot to be in. As you regain your bearings and start seeking a new position, here are some tips:
• Keep in touch with your former colleagues, even those with whom you weren’t very close. There’s a good chance that some of them will hear of job openings in your industry that might be right for you. They might not only inform you, but sometimes they can put in a good word for you. They might also provide helpful references once you’re being considered for a new position.
• Do a lot of networking instead of just mailing out resumes. You want to stand out among the many applications companies receive for each position, so it can help a lot if someone at a company can vouch for you. Inform them that you’re looking for a new position and ask them to keep you in mind and to connect you with anyone they know in fields or companies of interest to you.
• Don’t bad-mouth your former employer on social media or during interviews, as you’ll come across as unprofessional. Instead, say little or just stick to some simple facts about your separation from the company.
• Freshen up that resume and start being active on sites such as LinkedIn.com, Indeed.com, Monster.com and CareerBuilder.com.
Name that company
I trace my roots back to a paint ingredient company in 1866. In 1873, I introduced my first paint, raw umber, in oil, and in 1877, my founder patented a re-sealable tin paint can. By the 1880s, I was selling ready-mixed paint. I introduced a water-based paint in 1941 and a latex paint in 1950. Over the years, I also made items such as insecticide, synthetic resins, automobile lacquer and linseed oil. Today, based in Cleveland and with 4,200-plus stores, I’m America’s largest specialty paint retailer. My brands include Krylon, Valspar and Pratt & Lambert. Who am I?
Last week’s answer
I was born 25 years ago in Alexandria, Virginia, as a print newsletter. Today, I oversee a global investment community, educating, amusing and enriching millions through my website, investing services, books, podcasts, syndicated newspaper feature, asset management service and more. (There are millions of copies of my books in print.) With offices in the U.K., Australia, Canada, Singapore and Germany, I’m an advocate for individual investors. My name is taken from Shakespeare and refers to the character who could tell the king the truth without getting his head lopped off. My favorite holiday is in April. Who am I? (Answer: The Motley Fool)