Also called stock symbols, ticker symbols are abbreviations that identify publicly traded shares on the stock market
Why It's Important
Ticker symbols are how you can find what stock or mutual fund you would like to invest in. When you use brokerage firms, like TD Ameritrade, Charles Schwab, etc., you have to put in the ticker symbol to buy and sell shares. Don't know the ticker symbol of the company or fund you are looking for? No worries! A quick Yahoo Finance search will provide the information you need. Some popular ticker symbols are:
GOOG - Alphabet (Google)
WMT - Walmart
NFLX - Netflix
FB - Facebook
SPY - S&P 500 Index Fund
There are literally thousands of ticker symbols out there! I challenge you, this week, to do a quick search of a company you are interested in or that you purchase from and find out what the ticker symbol is. Share with me on social media what you found!
*The information provided is for informational purposes and is no way investment advice*
Depreciation is when an asset loses its value over time.
Why It's Important
Cars are an asset that depreciates rather quickly. That is why they say once you drive off the lot, it has already lost some of its value. Some conventional wisdom uses the 3 year rule: Only buy a car that is 3 years or older because the first 3 years is when it loses most of its value. Why not let someone else take that hit instead of you? If you do get a new car, go for a brand that depreciates slowly. For instance, I used to have a 2016 Honda CRV that I bought new off the lot (Read about its ending here). When I got rid of it in 2018, I was only in the negative $3,000! That is a huge deal being that the average loss is 31% by year 2. Here is a good article on car depreciation from Edmunds: How Fast Does My Car Lose Value
Cars aren't the only things that depreciate. Add to that:
Computers and Electronics
Timeshares (More on that here)
You may be thinking homes don't depreciate. Well, sometimes, they do. It all depends on location, condition, the economy, and the relative value of nearby homes. So, when you are purchasing a home, keep this in mind!