Tag Archives: finance

Gary S. Williams: Understanding how correlation works

Investors hear a lot about the benefits of asset allocation, that is, spreading your assets among different types of investments to help reduce risk. But less discussed is an equally important measurement: correlation, which is a way to measure how closely related two types of investments are. In theory, you could be invested in multiple securities of differing types and classes, but if they are all closely correlated, your portfolio may not be as diverse as you think — and could open you up to more risk than you intended.

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Realities of Real Estate: Consider your costs beyond mortgage

When you purchase a home, there’s more to your monthly payment than just the mortgage, as well as costs that can go beyond normal maintenance and repairs. These days, some expenses associated with home ownership have risen so sharply that people are now giving a closer look, things like utility bills and taxes. Although not all of these expenses are applicable to every home sale, we’ll take you through the most common ones, so they don’t come as a surprise at the settlement table.

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