Investing Archives | Page 26 of 194

Mar

2025

What Are Blue Chip Stocks?

By Austin Kilham | Financial Independence, Growing Wealth, invest, Investing, Terminology | Comments Off

Blue chip stocks are generally issued by large, well-established companies that have a history of reliable growth. These companies are often financially sound, they’re typically considered lower risk; many blue chip stocks also pay dividends.

In other words, blue chip stocks are the big, stable ocean liners of the equity markets. Dazzling outperformance is not what blue chip investors are after. Rather, you may want to consider these large-cap stocks in the slow-but-steady corner of your equity allocation, as part of your diversification strategy.

Key Points

• Blue chip stocks tend to be bigger, more stable companies, often with a long history and slow but steady growth.

• Because blue chip companies are typically past their rapid growth phase, many can afford to distribute some of their profits to shareholders via dividends.

• The advantage of investing in blue chips is that they have a low risk profile, and may provide stability in a portfolio — potentially with more growth than fixed-income securities.

• For some investors, the disadvantage of blue chips is that these companies tend to be in the low-and-slow category of returns.

What Is a Blue Chip Stock?

First, let’s answer the obvious questions: Why blue chips? The origin of the term “blue chip stocks” is believed to originate with the game of poker, where traditionally the blue chips have the highest value.

While there is no fixed definition for blue chips, generally speaking blue chip stocks are known for being large, stable, and reliable. Blue chip companies can also share some other characteristics.

Common Traits of a Blue Chip Stocks

• They’re well-known. Blue-chip stocks can be found in almost any sector, from consumer goods to big pharma. Companies like Morgan Stanley, Disney, Oracle, Coca-Cola, and Pfizer are considered blue chip stocks.

• They’re industry leaders. Most blue chip stocks are not newcomers. Rather they’ve demonstrated a history of innovation as well as financial stability, which makes them well-established industry leaders, and a potential anchor for a defensive investing strategy.

• They’re big. Many blue chip companies have a market cap of $10 billion or more, and many are larger. Market capitalization is a measure of a company’s value, and it’s calculated by multiplying the share price by the number of shares outstanding.

• They’re well established. Most blue chip stocks are not newcomers. Rather they’ve demonstrated a history of financial stability, which can make them an important part of a defensive investment strategy.

• They have a long track record. Owing to their longer histories, many blue chip stocks have overcome market challenges, but that does not make them “safe” investments. But they may be considered lower risk than, say, growth stocks.

• They meet certain standards. You’ll often find blue chip stocks listed on the Dow Jones Industrial Average, S&P 500 Dividend Aristocrats, or the Bridgeway Blue Chip 35 Index. Some of these indexes can have stringent rules that only the most financially stable companies could meet.

• They pay dividends. Blue chip stocks typically pay out dividends, or a share of the company’s profits, to shareholders.

Taken together, these qualities can make blue chips an important part of a defensive investment strategy.

Investors may want to consider them when they’re researching stocks to buy through an online brokerage or a traditional one.

10 of the Biggest Blue Chip Stocks

Here is a selection of 10 U.S. blue chip companies from Morningstar’s Best Companies to Own list. They are the largest by market cap, as of February 21, 2025.

These companies have been around for decades, and because of their consistent performance history, they’re considered blue chip stocks today. You may want to consider them when you’re thinking about portfolio diversification.

• Anheuser-Busch InBev (BUD)

• Pfizer (PFE)

• Nike (NKE)

• Taiwan Semiconductor Manufacturing (TSM)

• Roche Holding (RHHBY)

• Alphabet (GOOGL)

• Danaher (DHR)

• Caterpillar (CAT)

• Merck (MRK)

• Nestle (NSRGY)

Pros and Cons of Investing in Blue Chip Stocks

Like any investment, blue chip stocks have their potential benefits and drawbacks. Before investing in blue chip stocks, you may want to weigh the positives and negatives of these types of stocks on your overall investment strategy.

Benefits of Blue Chip Investments

Blue chip stocks can offer investors certain benefits:

• They’re here for the long term. Many of these companies are global in reach, with immense resources and real staying power. Thus, blue chip stocks may be more stable than smaller companies in their sectors — but with the ability to innovate and maintain their status.

• They can be lower risk. Blue chip stocks are often considered lower risk stocks because of their size and market history in the market. As noted above, many of them also pay dividends, which benefits investors.

• They’re highly liquid. Because these companies trade frequently, but are typically not volatile, investors can generally be confident in these stocks’ value when selling.

• They’re easy to follow. The companies behind many blue chip stocks tend to be well known, which means announcements and news around them is likely to make the front page of the financial section.

Potential Drawbacks of Blue Chip Stocks

There’s no such thing as a “sure thing,” especially in investing, and the drawbacks of blue chip stocks prove this point. Here are a few cons to keep in mind when considering blue chips for your portfolio.

• They may fall harder. The old adage “the bigger they are, the harder they fall” may apply here. Just because a blue chip stock has a solid history does not ensure a profitable future, and legacy brands can fall behind nimble newcomers.

• Limited growth. Though these companies typically have longevity on their side, they are often past their prime growth years. This is why blue chip companies also have a reputation for less volatile and lower risk.

• They may be expensive. Blue chip stocks tend to be well-known brands and can be a desirable part of people’s investment strategies. For that reason, you’re unlikely to get a deal on them.

Investing in Individual Blue Chip Stocks

Like a well-balanced meal, investing in blue chip stocks can be one part of a healthy portfolio. Those looking to make blue chip stocks a part of their balanced investment strategy may first consider investing in individual stocks.

If the price per share is too steep for an investor’s budget, investors can consider fractional share investing, which allows the purchase of a fraction of a stock instead of the whole share, starting at just $5. Restrictions do apply for fractional shares.

Choosing to invest in an individual stock might be a good way to get a feel for the market, or it might be a way to take a more active investment strategy. Either way, a brokerage can handle an investor’s single blue chip stock purchase.

Blue Chip Funds: An Alternative to Individual Stocks

If no individual stock strikes your fancy, but you still want to get into the blue chip game, you might consider investing in index funds or ETFs that focus on blue chip stocks.

Various index funds and ETFs typically hold a diversified basket of stocks, often in line with a stock market index that tracks a segment of the market. Choosing an index fund or ETF that tracks large-cap stocks, the S&P 500, or the Dow Jones Industrial average can be one way to invest in a wide range of blue chip companies and add diversification.

The Takeaway

A company’s stock may earn a blue chip designation when they have a strong performance history, consistent returns, excellent financials, and over time they’ve become industry leaders.

For investors who are ready to start investing, blue chip stocks can be a solid choice, offering reliable performance — but not one that’s likely to deliver a lot of growth. As such, blue chips are often viewed as being conservative (i.e., lower risk). Being conservative can be an important part of an investment strategy, and investors may want to include other investments as well.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

Where did the term “blue chip” come from?

The term “blue chips” may have come from poker, where blue chips are traditionally worth more than other chips.

What are some examples of well-known blue chip companies?

There are blue chip companies in every industry. Some well-known blue chips include companies like Wells Fargo, Anheuser Busch, Nike, Caterpillar, and Pfizer.

What are the potential downsides of blue chip investments?

While blue chips are considered steady and reliable, they aren’t immune to market volatility, and can be vulnerable to more nimble competitors. Blue chips also tend to be expensive, and more conservative than, say, growth stocks — something to bear in mind when constructing a balanced portfolio.

How do I invest in blue chip stocks?

Blue chip stocks are generally available to investors directly through a brokerage account, as well as through mutual funds and ETFs, which offer a basket of stocks. It’s also possible to purchase fractional shares of blue chip stocks.

There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.

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Mar

2025

Money Market vs Capital Market: What’s the Difference?

By Rebecca Lake | Growing Wealth, Investing, money | Comments Off

The money market is where short-term debt and lending takes place; the capital market is designed for long-term assets, such as stocks and bonds. The former is considered a safer place to park one’s money; the latter is seen as riskier but potentially more rewarding. While the money market and the capital market are both aspects of the larger global financial system, they serve different goals for investors.

Understanding the difference between money market and capital market matters plays a role in understanding the market as a whole. Whether you hold assets that are part of the money market vs. capital market can influence your investment outcomes and degree of risk exposure.

What Is the Money Market?

The money market is where short-term financial instruments, i.e. securities with a holding period of one year or less, are traded. Examples of money market instruments include:

• Bankers acceptances. Bankers acceptances are a form of payment that’s guaranteed by the bank and is commonly used to finance international transactions involving goods and services.

• Certificates of deposit (CDs). Certificate of deposit accounts are time deposits that pay interest over a set maturity term.

• Commercial paper. Commercial paper includes short-term, unsecured promissory notes issued by financial and non-financial corporations.

• Treasury bills (T-bills). Treasury bills are a type of short-term debt that’s issued by the federal government. Investors who purchase T-bills can earn interest on their money over a set maturity term.

These types of money market instruments can be traded among banks, financial institutions, and brokers. Trades can take place over the counter, meaning the underlying securities are not listed on a trading exchange like the New York Stock Exchange (NYSE) or the Nasdaq.

You may be familiar with the term “money market” if you’ve ever had a money market account. These are separate from the larger money market that is part of the global economy. As far as how a money market account works goes, these bank accounts allow you to deposit money and earn interest. You may be able to write checks from the account or use a debit card to make purchases or withdrawals.

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How Does the Money Market Work?

The money market effectively works as a short-term lending and borrowing system for its various participants. Those who invest in the money market benefit by either gaining access to funds or by earning interest on their investments. Treasury bills are an example of the money market at work.

When you buy a T-bill, you’re essentially agreeing to lend the federal government your money for a certain amount of time. T-bills mature in one year or less from their issue date. The government gets the use of your money for a period of time. Once the T-bill matures, you get your money back with interest.

What Is the Capital Market?

The capital market is the segment of the financial market that’s reserved for trading of long-term debt instruments. Participants in the capital market can use it to raise capital by issuing shares of stock, bonds, and other long-term securities. Those who invest in these debt instruments are also part of the capital market.

The capital market can be further segmented into the primary and secondary market. Here’s how they compare:

• Primary market. The primary market is where new issuances of stocks and bonds are first offered to investors. An initial public offering or IPO is an example of a primary market transaction.

• Secondary market. The secondary market is where securities that have already been issued are traded between investors. The entity that issued the stocks or bonds is not necessarily involved in this transaction.

As an investor, you can benefit from participating in the capital market by buying and selling stocks. If your stocks go up in value, you could sell them for a capital gain. You can also derive current income from stocks that pay out dividends.

Recommended: What Is an Emerging Market?

How Does the Capital Market Work?

The capital market works by allowing companies and other entities to raise capital. Publicly-traded stocks, bonds, and other securities are traded on stock exchanges. Generally speaking, the capital market is well-organized. Companies that issue stocks are interested in raising capital for the long-term, which can be used to fund growth and expansion projects or simply to meet operating needs.

In terms of the difference between capital and money market investments, it usually boils down to three things: liquidity, duration, and risk. While the money market is focused on the short-term, the capital market is a longer term play. Capital markets can deliver higher returns, though investors may assume greater risk.

Understanding the capital market is important because of how it correlates to economic movements as a whole. The capital market helps to create stability by allowing companies to raise capital, which can be used to fund expansion and create jobs.

Differences Between Money Markets and Capital Markets

When comparing the money market vs. capital market, there are several things that separate one from the other. Knowing what the key differences are can help to deepen your understanding of money markets and capital markets.

Purpose

Perhaps the most significant difference between the money market and capital market is what each one is designed to do. The money market is for short-term borrowing and lending. Businesses use the money market to meet their near-term credit needs. Funds are relatively safe, but typically won’t see tremendous growth.

The capital market is also designed to help businesses and companies meet credit needs. The emphasis, however, is on mid- to long-term needs instead. Capital markets are riskier, but they may earn greater returns over time than the money market.

Length of Securities

The money market is where you’ll find short-term securities, typically with a maturity period of one year or less, being traded. In the capital market, maturity periods are usually not fixed, meaning there’s no specified time frame. Companies can use the capital market to fund long-term goals, with or without a deadline.

Financial Instruments

As mentioned, the kind of financial instruments that are traded in the short-term money market include bankers acceptances, commercial paper, and Treasury bills. The capital market is the domain of stocks, bonds, and other long-term securities.

Nature of Market

The structure and organization of the money market is usually informal and loosely organized. Again, securities may be traded over-the-counter rather than through a stock exchange. With the capital market, trading takes place primarily through exchanges. This market is more organized and formalized overall.

Securities Risk

Risk is an important consideration when deciding on the best potential places to put your money. Since the money market tends to be shorter term in nature, the risk associated with the financial instruments traded there is usually lower. The capital market, on the other hand, may entail higher risk to investors.

Liquidity

Liquidity is a measure of how easy it is to convert an asset to cash. One notable difference between capital and money market investments is that the money market tends to offer greater liquidity. That means if you need to sell an investment quickly, you’ll have a better chance of converting it to cash in the money market.

Length of Credit Requirements

The money market is designed to meet the short-term credit requirements of businesses. A company that needs temporary funding for a project that’s expected to take less than a year to complete, for example, may turn to the money market. The capital market, on the other hand, is designed to cover a company’s long-term credit requirements with regard to capital access.

Return on Investment

Return on investment or ROI is another important consideration when deciding where to invest. When you invest in the money market, you’re getting greater liquidity with less risk but that can translate to lower returns. The capital market can entail more risk, but you may be rewarded with higher returns.

Timeframe on Redemption

Money market investments do not require you to hold onto them for years at a time. Instead, the holding period and timeframe to redemption is likely one year or less. With capital market investments, there is typically no set time frame. You can hold onto investments for as long as they continue to meet your needs.

Relevance to Economy

The money market and capital market play an important role in the larger financial market. Without them, businesses would not be able to get the short- and long-term funding they need.

Here are some of the key differences between money markets and capital markets with regard to their economic impacts:

• The money market allows companies to realize short-term goals.

• Money market investments allow investors to earn returns with lower risk.

• Capital markets help to provide economic stability and growth.

• Investors can use the capital market to build wealth.

Money Market	Capital Market
Offers companies access to short-term funding and capital, keeping money moving through the economy.	Provides stability by allowing companies access to long-term funding and capital.
Investors can try to use interest earned from money market investments to preserve wealth.	Investors can try to use returns earned from capital market investments to grow wealth.
Money market investments are typically less volatile, so they’re less likely to negatively impact the financial market or the investor.	Capital market investments tend to be more volatile, so they offer greater risk and reward potential.

Deciding Which Market to Invest In

Deciding whether to invest in the money market or capital market can depend on several things, including your:

• Investment goals and objectives

• Risk tolerance

• Preferred investment style

If you’re looking for investments that are highly liquid and offer a modest rate of return with minimal risk, then you may turn to the money market. On the other hand, if you’re comfortable with a greater degree of risk in exchange for the possibility of earning higher returns, you might lean toward the capital market instead.

You could, of course, diversify by investing in both the money market and capital market. Doing so may allow you to balance higher-risk investments with lower ones while creating a portfolio mix that will attempt to produce the kind of returns you seek.

Alternatives to Money and Capital Markets

Aside from the money and capital markets, there are other places you can keep money that you don’t necessarily plan to spend right away. They include the different types of deposit accounts you can open at banks and credit unions. Specifically, you may opt to keep some of your savings in a certificate of deposit account, high-yield checking account, or traditional savings account. Here’s a closer look:

High-Yield Checking Accounts

Checking accounts are designed to hold money that you plan to use to pay bills or make purchases. Most checking accounts don’t pay interest but there are a handful of high-yield checking accounts that do.

With these accounts, you can earn interest on your checking balance. The interest rate and APY (annual percentage yield) you earn can vary by bank. Some banks also offer rewards on purchases with high-yield checking accounts. When looking for an interest-checking account, be sure to consider any fees you might pay or minimum balance requirements you’ll need to meet.

Traditional Savings Accounts

A savings account can be another secure place to keep your money and earn interest as part of the bargain. The different types of savings accounts include regular savings accounts offered at banks, credit union savings accounts, and high-yield savings accounts from online banks.

Of those options, an online savings account typically has the highest interest rates and the lowest fees. The trade-off is that you won’t have branch banking access, which may or may not matter to you.

The Takeaway

There are lots of reasons why people do not invest their money. A lack of understanding about the difference between money market vs. capital market investments can be one of them. Once you understand that the money market typically involves short-term, lower-risk debt instruments, while the capital market likely revolves around longer-term ones with higher risk and reward, you will be on your way to better knowing how the global financial market works.

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FAQ

What are the similarities between a money market and capital market?

Both the money market and the capital market are intended to make it easier for businesses and companies to gain access to capital. The main differences between money markets and capital markets are liquidity, duration, and the types of financial instruments that are traded. Both also represent ways that consumers can potentially grow their money by investing.

How is a money market and capital market interrelated?

The capital market and the money market are both part of the larger financial market. The money market works to ensure that businesses are able to reach their near-term credit needs while the capital market helps companies raise capital over longer time frames.

Why do businesses use the money markets?

Businesses use the money market to satisfy short-term credit and capital needs. Short-term debt instruments can be traded in the money market to provide businesses with funding temporarily as well as to maintain liquid cash flow.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

Photo credit: iStock/AndreyPopov

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Mar

2025

What Is Mark to Market and How Does It Work?

Mark to Market Definition and Uses in Account & Investing

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

The term “mark to market” refers to an accounting method used to measure the value of assets based on current market conditions. Mark to market accounting seeks to determine the real value of assets based on what they could be sold for right now.

That can be useful in a business setting when a company is trying to gauge its financial health or get a valuation estimate ahead of a merger or acquisition. Aside from accounting, mark to market also has applications in investing when trading stocks, futures contracts, and mutual funds. For traders and investors, it can be important to understand how this concept works.

Key Points

• Mark to market is an accounting method used to determine the current value of assets based on market conditions.

• It is used in business to assess financial health and valuation, as well as in investing for trading stocks, futures contracts, and mutual funds.

• Mark to market accounting adjusts asset values based on current market conditions to estimate their potential sale value.

• Pros of mark to market accounting include accurate valuations for asset liquidation, value investing, and establishing collateral value for loans.

• Cons include potential inaccuracies, volatility skewing valuations, and the risk of devaluing assets in an economic downturn.

What Is Mark to Market?

Mark to market is, in simple terms, an accounting method that’s used to calculate the current or real value of a company’s assets, as noted. Mark to market can tell you what an asset is worth based on its fair market value.

Mark to market accounting is meant to create an accurate estimate of a company’s financial status and value year over year. This accounting method can tell you whether a company’s assets have increased or declined in value. When liabilities are factored in, mark to market can give you an idea of a company’s net worth.

💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

How Mark to Market Accounting Works

Mark to market accounting works by adjusting the value of assets based on current market conditions. The idea is to determine how much an asset — whether it be a piece of equipment or an investment — could be worth if it were to be sold immediately.

If a company were in a cash crunch, for example, and wanted to sell off some of its assets, mark to market accounting could give an idea of how much capital it might be able to raise. The company would try to determine as accurately as possible what its marketable assets are worth.

In stock trading, mark to market value is determined for securities by looking at volatility and market performance. Specifically, you’re looking at a security’s current trading price then making adjustments to value based on the trading price at the end of the trading day.

There are other ways mark to market can be used beyond valuing company assets or securities. In insurance, for example, the mark to market method is used to calculate the replacement value of personal property. Calculating net worth, an important personal finance ratio, is also a simple form of mark to market accounting.

Mark-to-Market Accounting: Pros and Cons

Mark to market accounting can be useful when evaluating how much a company’s assets are worth or determining value when trading securities. But it’s not an entirely foolproof accounting method.

Mark to Market Pros	Mark to Market Cons
• Can help establish accurate valuations when companies need to liquidate assets • Useful for value investors when making investment decisions • May make it easier for lenders to establish the value of collateral when extending loans	• Valuations are not always 100% accurate since they’re based on current market conditions • Increased volatility may skew valuations of company assets • Companies may devalue their assets in an economic downturn, which can result in losses

Mark to Market Pros

Mark to Market Cons

• Can help establish accurate valuations when companies need to liquidate assets

• Useful for value investors when making investment decisions

• May make it easier for lenders to establish the value of collateral when extending loans

• Valuations are not always 100% accurate since they’re based on current market conditions

• Increased volatility may skew valuations of company assets

• Companies may devalue their assets in an economic downturn, which can result in losses

Pros of Mark to Market Accounting

There are a few advantages of mark to market accounting:

• It can help generate an accurate valuation of company assets. This may be important if a company needs to liquidate assets or it’s attempting to secure financing. Lenders can use the mark to market value of assets to determine whether a company has sufficient collateral to secure a loan.

• It can help mitigate risk. If a value investor is looking for new companies to invest in, for example, having an accurate valuation is critical for avoiding value traps. Investors who rely on a fundamental approach can also use mark to market value when examining key financial ratios, such as price to earnings (P/E) or return on equity (ROE).

• It may make it easier for lenders to establish the value of collateral when extending loans. Mark to market may provide more accurate guidance in terms of collateral value.

Cons of Mark to Market Accounting

There are also some potential disadvantages of using mark to market accounting:

• It may not be 100% accurate. Fair market value is determined based on what you expect someone to pay for an asset that you have to sell. That doesn’t necessarily guarantee you would get that amount if you were to sell the asset.

• It can be problematic during periods of increased economic volatility. It may be more difficult to estimate the value of a company’s assets or net worth when the market is experiencing uncertainty or overall momentum is trending toward an economic downturn.

• Companies may inadvertently devalue their assets in a downturn. If the market’s perception of a company, industry, or sector turns negative, it could spur a sell-off of assets. Companies may end up devaluing their assets if they’re liquidating in a panic. This can have a boomerang effect and drive further economic decline, as it did in the 1930s when banks marked down assets following the 1929 stock market crash.

Mark to Market in Investing

In investing, mark to market is used to measure the current value of securities, portfolios or trading accounts. This is most often used in instances where investors are trading futures or other securities in margin accounts.

Futures are derivative financial contracts, in which there’s an agreement to buy or sell a particular security at a specific price on a future date. Margin trading involves borrowing money from a brokerage in order to increase purchasing power.

Understanding mark to market is important for meeting margin requirements to continue trading. Investors typically have to deposit cash or have marginable securities of $2,000 or 50% of the securities purchased. The maintenance margin reflects the amount that must be in the margin account at all times to avoid a margin call.

In simple terms, margin calls are requests for more money. FINRA rules require the maintenance margin to be at least 25% of the total value of margin securities. If an investor is subject to a margin call, they’ll have to sell assets or deposit more money to reach their maintenance margin and continue trading.

In futures trading, mark to market is used to price contracts at the end of the trading day. Adjustments are made to reflect the day’s profits or losses, based on the closing price at settlement. These adjustments affect the cash balance showing in a futures account, which in turn may affect an investor’s ability to meet margin maintenance requirements.

💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

Mark to Market Example

Futures markets follow an official daily settlement price that’s established by the exchange. In a futures contract transaction you have a long trader and a short trader. The amount of value gained or lost in the futures contract at the end of the day is reflected in the values of the accounts belonging to the short and long trader.

So, assume a farmer takes a short position in 10 soybean futures contracts to hedge against the possibility of falling commodities prices. Each contract represents 5,000 bushels of soybeans and is priced at $5 each. The farmer’s account balance is $250,000. This account balance will change daily as the mark to market value is recalculated. Here’s what that might look like over a five-day period.

Day	Futures Price	Change in Value	Gain/Loss	Cumulative Gain/Loss	Account Balance
1	$5				$250,00
2	$5.05	+0.05	-2,500	-2,500	$247,500
3	$5.03	-0.02	+1,000	-1,500	$248,500
4	$4.97	-0.06	+3,000	+1,500	$251,500
5	$4.90	-0.07	+3,500	+5,000	$255,000

Since the farmer took a short position, a decline in the value of the futures contract results in a positive gain for their account value. This daily pattern of mark to market will continue until the futures contract expires.

Conversely, the trader who holds a long position in the same contract will see their account balance move in the opposite direction as each new gain or loss is posted.

Mark to Market in Recent History

Mark to market accounting can become problematic if an asset’s market value and true value are out of sync. For example, during the financial crisis of 2008-09, mortgage-backed securities (MBS) became a trouble spot for banks. As the housing market soared, banks raised valuations for mortgage-backed securities. To increase borrowing and sell more loans, credit standards were relaxed. This meant banks were carrying a substantial amount of subprime loans.

As asset prices began to fall, banks began pulling back on loans to keep their liabilities in balance with assets. The end result was a housing bubble which sparked a housing crisis. During this time, the U.S. economy would enter one of the worst recessions in recent history.

The U.S. Financial Accounting Standards Board (FASB) eased rules regarding the use of mark to market accounting in 2009. This permitted banks to keep the values of mortgage-backed securities on their balance sheets when the value of those securities had dropped significantly. The measure meant banks were not forced to mark the value of those securities down.

Can You Mark Assets to Market?

The FASB oversees mark to market accounting standards. These standards, along with other accounting and financial reporting rules, apply to corporate entities and nonprofit organizations in the U.S. But it’s possible to use mark to market principles when making trades.

If you’re trading futures contracts, for instance, mark to market adjustments are made to your cash balance daily, based on the settlement price of the securities you hold. Your cash balance will increase or decrease based on the gains or losses reported for that day.

If the market moves in your favor, your account’s value would increase. But if the market moves against you and your futures contracts drop in value, your cash balance would adjust accordingly. You’d have to pay attention to maintenance margin requirements in order to avoid a margin call.

Which Assets Are Marked to Market?

Generally, the types of assets that are marked to market are ones that are bought and sold for cash relatively quickly — otherwise known as marketable securities. Assets that can be marked to market include stocks, futures, and mutual funds. These are assets for which it’s possible to determine a fair market value based on current market conditions.

When measuring the value of tangible and intangible assets, companies may not use the mark to market method. In the case of equipment, for example, they may use historical cost accounting which considers the original price paid for an asset and its subsequent depreciation. Meanwhile, different valuation methods may be necessary to determine the worth of intellectual property or a company’s brand reputation, which are intangible assets.

Mark to Market Losses

Mark to market losses occur when the value of an asset falls from one day to the next. A mark to market loss is unrealized since it only reflects the change in valuation of asset, not any capital losses associated with the sale of an asset for less than its purchase price. The loss happens when the value of the asset or security in question is adjusted to reflect its new market value.

Mark to Market Losses During Crises

Mark to market losses can be amplified during a financial crisis when it’s difficult to accurately determine the fair market value of an asset or security. When the stock market crashed, for instance, in 1929, banks were moved to devalue assets based on mark to market accounting rules. This helped turn what could have been a temporary recession into the Great Depression, one of the most significant economic events in stock market history.

Mark to Market Losses in 2008

During the 2008 financial crisis, mark to market accounting practices were a target of criticism as the housing market crashed. The market for mortgage-backed securities vanished, meaning the value of those securities took a nosedive.

Banks couldn’t sell those assets, and under mark to market accounting rules they had to be revalued. As a result banks collectively reported around $2 trillion in total mark to market losses.

The Takeaway

Mark to market is, as discussed, an accounting method that’s used to calculate the current or real value of a company’s assets. Mark to market is a helpful principle to understand, especially if you’re interested in futures trading.

When trading futures or trading on margin, it’s important to understand how mark to market calculations could affect your returns and your potential to be subject to a margin call. As always, if you feel like you’re in the weeds, it can be beneficial to speak with a financial professional for guidance.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

FAQ

Is mark to market accounting legal?

Mark to market account is a legal accounting practice, and is overseen by the FASB. Though it has been used in the past to cover financial losses, it remains a legal and viable method.

Is mark to market accounting still used?

Yes, mark to market accounting is still used both by businesses and individuals for investments and personal finance needs. In some sectors of the economy, it may even remain as one of the primary accounting methods.

What are mark to market losses?

Mark to market losses are losses that are generated as a result of an accounting entry, as opposed to a loss generated by the sale of an asset. The loss is incurred, under mark to market accounting, when the value of an asset declines, not when it is sold for less than it was purchased.

About the author

Rebecca Lake

Photo credit: iStock/Drazen_

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Mar

2025

Guide to Managing Debt in Retirement

By Rebecca Lake | Debt Payoff, invest, Investing, Preparing for Retirement | Comments Off

Investing for a comfortable retirement might be challenging if you’re also trying to pay down debt. Dedicating more of your budget to debt means you might have less to invest. You might consider paying off certain debts after retirement so that you can save more now, but that can have disadvantages as well.

If you expect to have debt in retirement, it’s important to know how to manage it.

Key Points

• Professional financial advice can aid in creating a debt repayment plan and optimizing retirement savings strategies.

• Using debt management methods like the debt snowball or avalanche can help individuals effectively repay debts.

• Debt consolidation options, such as loans or 0% APR balance transfers, can reduce interest costs and simplify payments.

• Using retirement funds to pay off debt is generally discouraged, as it can hinder financial growth and create tax liabilities.

• Planning for a debt-free retirement may lower living expenses and increase financial security.

Retiring With Debt

One of the first steps in retirement planning is determining how much money you’ll need to meet your expenses once you stop working. The numbers might be inflated if you’re paying off retirement debt on top of funding basic living expenses. Working out a realistic budget that includes debt repayment is critical for determining how much you’ll need to save and invest.

How Much Debt Is Common to Have in Retirement?

Having debt in retirement is fairly common among older Americans. In fact, roughly two-thirds of seniors between the ages of 65 and 74 carry some level of debt, and half of those over 75 do.
In terms of how much debt retirees have by age, here’s how the numbers break down.

Age Range	Median Debt	Mean Debt
55 to 64 years old	$71,290	$168,940
65 to 74 years old	$46,370	$122,010
75 and older	$33,620	$101,200

Source: Survey of Consumer Finances, 2019-2022.

The types of debt you might have at retirement may include:

• Mortgage loans

• Home equity loans or lines of credit

• Student loans, either for yourself or loans you’ve cosigned for your child

• Vehicle loans

• Credit card balances

• Medical bills

• Personal loans

• Business loans

A reverse mortgage is another form of debt, though it typically doesn’t have any repayment obligation. Reverse mortgages allow eligible seniors to tap into their home equity as a secondary income stream. The mortgage is typically repaid when the homeowner passes away and the home is sold.

Tips for Managing Debt in Retirement

If you have debt, retirement might feel a little more stressful, financially speaking. You might be torn between trying to manage retirement expenses while also making a dent in your debt balances.
Here are a some simple tips for managing debt in retirement:

• List out each debt you have, including the remaining balance owed, monthly minimum payment due, and the interest rate.

• Consider whether it makes sense to use the debt snowball or debt avalanche method to repay what’s owed.

• Consider contacting your credit card issuers to ask for an interest rate reduction.

• If no rate reduction is offered, look into 0% APR credit card balance transfers to save money on interest.

• Automate payments if possible to avoid late payments, which can trigger fees and potentially damage your credit score.

• Research debt consolidation loan options to see if you might be able to save money by combining multiple debts.

• Prioritize repaying debts that are secured by collateral, such as your mortgage or a car loan.

• Weigh the pros and cons of using a home equity loan or line of credit to consolidate unsecured debts.

• If you owe private student loans, consider shopping around for refinancing options which might help you to lower your interest rate.

• Avoid taking on new debt unnecessarily if possible.

If you’re truly struggling with debt in retirement, there are other things you might consider including a debt management plan, credit counseling, debt settlement, or even bankruptcy. Talking to a credit counselor or financial advisor can help you decide if any of those possibilities might be right for you.

And if you need to get started saving for retirement, you can look at your options to open an online IRA.

Using Retirement to Pay Off Debt

If you have retirement savings in a 401(k) or similar workplace plan, you might be tempted to withdraw some of the money to pay off debt. For example, you might decide to take a 401(k) loan to pay off credit cards or other debts. You’d then pay back the loan paying interest to yourself.

It sounds good on the surface, but using retirement savings to pay off debt can be problematic in more ways than one. For one thing, money you take out of your 401(k) or another retirement account doesn’t have the chance to continue growing through the power of compound interest. That could leave you with a sizable savings gap once you’re ready to retire.

You might be paying interest back to yourself with a 401(k) loan but the rate you’re earning might be much less than you could have gotten if you’d left the money in place. Additionally, your employer might not allow you to make new contributions to the plan until the loan is repaid in full.

More importantly, you could end up with a tax liability for a 401(k) loan. If you leave your employer with a loan balance in place, you’ll have to pay it all back at once. If you can’t do that, the IRS can treat the entire loan amount as a taxable distribution. For that reason, using a 401(k) loan to pay off debt is one of the most common retirement mistakes you’re usually better off avoiding.

Getting Out of Debt Before Retirement

If you’d like to retire debt-free or as close to it as possible, it’s better to start working on repaying what you owe sooner rather than later. How you approach paying off debt before you retire can depend on how much you owe, what types of debt you have, and how much money you have to work with in your budget.

Here are a few additional tips for paying down debt before retirement.

Paying Off Your School Loans

More than 2 million Americans over the age of 55 have outstanding student debt. So, it’s not out of the realm of possibility that you might be torn between saving for retirement or paying student loans. And it’s helpful to know what debt relief options you might have. If you have federal student loans, you might be able to:

• Enroll in an income-driven repayment plan, which might allow you to eventually have some of your debt forgiven.

• Qualify for Public Service Loan Forgiveness if you’re working or plan to work in a civil service job.

• Apply for other types of federal loan forgiveness, such as Nursing Corps Loan Repayment.

• Consolidate your loans to streamline your monthly payments.

If you have private student loans, you might look into refinancing them. Student loan refinancing allows you to take out a new loan, ideally at a lower interest rate, to pay off your existing loans. Depending on how the new loan is structured, you might save a significant amount of money on interest over the long term.

Paying Off Your House

Should retirees pay off their mortgage? Entering retirement with no mortgage debt could mean much lower living expenses. But if you’re trying to pay off your home before you retire, you might have to commit substantially more of your monthly income to the payments.

If you’re interested in paying off your home faster, there are a few hacks you might try, including:

• Paying biweekly, which allows you to make one additional full mortgage payment per year.

• Applying your extra paycheck during a three-paycheck month to your mortgage’s principal balance.

• Using tax refunds, bonuses, or other windfalls to pay down the principal.

You could also look into refinancing your mortgage to a shorter loan term. Doing so may raise your monthly payment, but you could get out of debt faster, potentially saving money on interest.

Paying Off Your Credit Cards

Credit cards are usually considered to be “bad” debt and you might want to get rid of them as quickly as possible, especially if they’re carrying high APRs. Transferring balances to a card with a lower or 0% rate can cut the amount of interest you pay so more of your monthly payment goes to the principal.

You could also consider a personal loan for debt consolidation, if the interest rate is lower than the combined average rate on your cards. Keep in mind that it pays to shop around to find the best loan option for your needs.

Paying Off Your Car

Car loans can come with sizable monthly payments, which may keep you from investing as much as you’d like for retirement. Refinancing may be an option, though whether you can get a new car loan may depend on the vehicle’s value and what you owe on the old loan.

Paying biweekly or applying tax refunds to your balance can help you get out of car loan debt faster if you’re not able to refinance. You could also try rounding up your card payments to the next $100 each month. So if your regular payment is $347.55, you could round it up to $400. That’s a simple hack for paying off car loan debt in less time.

Saving for Retirement

If you’re trying to save for retirement while paying down debt, it’s important to find the right balance in your budget. It’s also a good idea to know what your options are for saving and investing. That might include:

• 401(k) or 457(b) plans at work

• Traditional and Roth Individual Retirement Accounts

• SEP (Simplified Employee Pension) IRA, if you’re self-employed

• Solo 401(k), if you’re self-employed

You can also invest in a taxable brokerage account, though you won’t get the same tax breaks as qualified retirement plans. If you have a high deductible health plan, you may also have access to a Health Savings Account (HSA). While an HSA is not a retirement account, per se, you could still use it to save money on a tax-advantaged basis for your future health care needs.

If you’re not sure how much you can afford to save or need to save, using a retirement calculator can help. You can revisit your plan each year to see if you have room to increase the amount you’re saving, based on changes to your budget or income.

Seeking a Financial Advisor

Getting professional financial advice can be helpful if you’re not sure how to go about creating a debt repayment plan or preparing for retirement. A financial advisor can help you figure out:

• How much you’ll need to save to reach your target retirement goals.

• Which debts to prioritize and how to make them less expensive so you can pay them off faster.

• Where to focus your savings and investing efforts first (e.g., a 401(k) vs. an IRA).

• How to diversify your portfolio to achieve the rewards you’re looking for with an amount of risk you can tolerate.

The Takeaway

Debt doesn’t have to be an obstacle to your retirement goals. Creating a debt repayment strategy and actively avoiding unnecessary debt can make it easier for you to create a secure financial future.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help build your nest egg with a SoFi IRA.

FAQ

Is it wise to use retirement to pay off debt?

Using retirement funds to pay off debt is generally not recommended by financial experts as it may leave you playing catch up later. Better options for paying off debt before or during retirement can include a debt consolidation loan, home equity loan or line of credit, or 0% APR balance transfer offer.

How much debt is common to have at retirement?

Federal Reserve data suggests that the typical retiree between the ages of 55 and 74 has somewhere between $71,000 and $122,000 in debt. That includes mortgage debt, student loans, auto loans, and credit card balances.

What percent of Americans retire with debt?

According to Federal Reserve data, 77% of older Americans aged 55 to 64 have debt. Among Americans aged 65 to 74, 70% have some debt while 51% of those 75 and older have debt obligations.

About the author

Rebecca Lake

Photo credit: iStock/bernardbodo

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN1122016

Mar

2025

How Does Magic Formula Investing Work?

By Rebecca Lake | Growing Wealth, Investing, Terminology | Comments Off

Magic formula investing is a rules-based investing strategy developed by hedge fund manager and professor Joel Greenblatt. First outlined in his book, “The Little Book That Beats the Market,” the magic formula investing strategy takes a simplified approach to choosing investments that virtually any investor can apply.

It draws on principles of value investing to create portfolios with the potential to outperform the market. For interested investors, knowing the ins and outs of the strategy before applying it is important.

What Is Magic Formula Investing?

At its core, Greenblatt’s magic investing formula focuses on finding good companies to invest in that are trading at attractive prices. Specifically, this strategy focuses on two things: Stock price, and the cost of capital.

The magic formula helps investors find or pinpoint companies that they deem undervalued by the market, and that are likely to offer a high return on their invested capital. It shares some similarities with value investing, which emphasizes finding the “hidden gems” that trade below their intrinsic value.

Value investors often follow a buy-and-hold strategy, in which securities are purchased with the intent to hold them long-term. The idea is that even though the market may have undervalued a company, it could grow in value over time and result in higher returns once an investor decides to sell.

This strategy utilizes fundamental analysis, which involves looking at things like revenue and earnings, and calculating return on equity to measure a company’s financial health.

The difference between a buy and hold strategy and magic formula investing is that fundamental analysis doesn’t come into play. Instead, the formula relies on Greenblatt’s stock-screening method to identify the most promising stocks to invest in.

💡 Quick Tip: How do you decide if a certain trading platform or app is right for you? Ideally, the investment platform you choose offers the features that you need for your investment goals or strategy, e.g., an easy-to-use interface, data analysis, educational tools.

What Is the Magic Investing Formula?

Screening stocks using the magic formula method is based on a rankings system. As developed by Greenblatt, this system uses three distinct criteria to rank companies: earnings before interest and taxes (EBIT), earnings per share, and return on capital.

Earnings Before Interest and Taxes (EBIT)

This is one way to measure a company’s profitability. This figure represents the net income of a company before income tax expense and interest expenses are deducted. To calculate a company’s EBIT, you’d subtract income tax expense and interest expenses from its revenue.

Earnings Per Share (EPS)

EPS is another measure of profitability, though it’s calculated differently than EBIT. With EPS, you divide a company’s net profit by the total number of common shares of stock it has outstanding. This is also a way to measure a company’s value, since EPS can tell you roughly how much money it makes per share of stock. A higher EPS may suggest higher value and a willingness for investors to pay more for shares of a company’s stock.

Return on Capital

Return on capital measures how well a company is able to allocate its capital to investments that are profitable. To figure out this number, you’d subtract dividends from net income, then divide that by the sum total of the company’s debt and equity.

By applying EBIT, EPS, and return on capital, the magic formula method is intended to determine the best quality companies at the best price.

How Magic Formula Investing Works

For investors interested in using the magic investing formula to build a portfolio, there’s a specific sequence of steps to follow that Greenblatt outlines.

1. Set a Market Capitalization Threshold

Market capitalization (commonly known as market cap) represents the current number of shares of stock a company has outstanding multiplied by the price per share. Companies can be categorized as small-cap, mid-cap or large-cap, based on their market capitalization.

For magic formula investing, an investor will typically start by excluding any companies with a market capitalization below $100 million. But one could set this number higher or lower, depending on personal preferences. Greenblatt advocates setting the threshold at $1 billion (which means large-cap) to minimize volatility.

2. Exclude Certain Securities

In magic formula investing, an investor next needs to eliminate several categories of investments. Those include stocks in the financials and utilities sectors, as well as foreign companies and American Depositary Receipts (ADRs). An ADR offers a way to indirectly own foreign companies that aren’t traded on U.S. stock exchanges.

3. Make the Necessary Calculations

Once an investor has narrowed down their list of companies, they can start running the numbers. Specifically, this means calculating:

• Earnings before interest and taxes (EBIT)

• Earnings yield (EBIT divided by enterprise value, which is a company’s total value as measured by its market capitalization plus total debt minus its cash assets)

• Return on capital (EBIT divided by the sum total of net fixed assets and working capital)

4. Create Your Rankings

After doing the above math, an investor can move on to ranking companies according to the magic formula — from highest earnings yield and highest return on capital to lowest. From this point on, one would focus on the top 20 to 30 companies when choosing how to invest.

5. Start Building Your Portfolio

Greenblatt suggests buying the stocks that rank in that top 20-30 list on a rolling basis. For instance, an investor would buy two to three positions per month for one year, eventually owning 24 to 36 of the top ranking companies. According to Greenblatt’s formula, owning at least 20 different companies will help to maintain diversification.

At the end of the 12-month period, the magic formula dictates that investors would sell off the losing stocks and the winners, being mindful of capital gains taxes rules. Then they’d start the cycle over again, using the magic formula rules to select a new crop of stocks to invest in.

Holding stocks for a year before selling at a gain or loss is intended to help maximize your after-tax returns. When you sell stocks at a profit that you’ve held longer than one year you’d be subject to the more favorable long-term capital gains tax rate.

💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

Magic Formula Investing Results

Any time one is considering an investment strategy, it’s important to look at how well it works when it comes to generating returns. Greenblatt’s approach is intended to help investors choose companies whose performance can potentially beat the market. And according to him, it has helped generate a 30% annual rate of return for investors who use the strategy, which is well above the typical return generated by the S&P 500.

There’s no guarantee that investors will see a positive return utilizing the strategy for any given year, however.

Whether investors can replicate those magic formula investing results for themselves can depend on different variables. For example, an individual portfolio may produce a very different return profile if an investor adjusts the market capitalization threshold up or down. Or if a company has an above-average year for revenue and profits, that could affect how the ranking calculations shake out.

Pros and Cons of Magic Formula Investing

The main idea behind the magic formula method is that it’s a simple enough strategy for even beginner investors to use. The idea is that by following the formula, an investor can eliminate some of the noise when making investment decisions.

That includes not giving in to investment biases that could prompt an investor to buy or sell at the wrong time. By focusing on the rankings and sticking with a one-year rolling schedule of buying and then selling, an investor can potentially remove their emotions from the equation. This can help avoid selling off stocks in a panic if the market becomes more volatile.

Downsides of Magic Formula Investing

While this formula can help an investor create a diversified portfolio, it’s still exclusionary in that it doesn’t include investing in foreign companies or companies in the financials and utilities sectors.

Beyond that, there’s no certainty that an investor will see positive magic formula investing results in the form of above-average returns — as noted. Greenblatt himself says that there’s nothing “magical” about the formula and that it shouldn’t be considered a guarantee of investment returns or performance. As with any investing strategy, it isn’t foolproof.

Finally, the magic formula investing strategy is meant to be a long-term one. For investors more interested in seeing quick results versus adopting a buy and hold mindset, day trading might be more appropriate.

The Takeaway

Hedge fund manager and professor Joel Greenblatt devised his magic formula investing strategy as a way to invest in a curated group of good companies with high potential for returns. The system ranks companies according to three criteria: earnings before interest and taxes (EBIT), earnings per share, and return on capital. The system is simple enough that it’s intended for anyone from first-time investors to more seasoned investors.

But as with any investment strategy, there is no guarantee that the magic formula investing results will be positive every time. There is a potential for both gains and losses.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

About the author

Rebecca Lake

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

What Are Blue Chip Stocks?

What Is a Blue Chip Stock?

Common Traits of a Blue Chip Stocks

10 of the Biggest Blue Chip Stocks

Pros and Cons of Investing in Blue Chip Stocks

Benefits of Blue Chip Investments

Potential Drawbacks of Blue Chip Stocks

Investing in Individual Blue Chip Stocks

Blue Chip Funds: An Alternative to Individual Stocks

The Takeaway

FAQ

Where did the term “blue chip” come from?

What are some examples of well-known blue chip companies?

What are the potential downsides of blue chip investments?

How do I invest in blue chip stocks?

Money Market vs Capital Market: What’s the Difference?

What Is the Money Market?

How Does the Money Market Work?

What Is the Capital Market?

How Does the Capital Market Work?

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Differences Between Money Markets and Capital Markets

Purpose

Length of Securities

Financial Instruments

Nature of Market

Securities Risk

Liquidity

Length of Credit Requirements

Return on Investment

Timeframe on Redemption

Relevance to Economy

Deciding Which Market to Invest In

Alternatives to Money and Capital Markets

High-Yield Checking Accounts

Traditional Savings Accounts

The Takeaway

FAQ

What are the similarities between a money market and capital market?

How is a money market and capital market interrelated?

Why do businesses use the money markets?

Mark to Market Definition and Uses in Account & Investing

What Is Mark to Market?

How Mark to Market Accounting Works

Mark-to-Market Accounting: Pros and Cons

Pros of Mark to Market Accounting

Cons of Mark to Market Accounting

Mark to Market in Investing

Mark to Market Example

Mark to Market in Recent History

Can You Mark Assets to Market?

Which Assets Are Marked to Market?

Mark to Market Losses

Mark to Market Losses During Crises

Mark to Market Losses in 2008

The Takeaway

FAQ

Is mark to market accounting legal?

Is mark to market accounting still used?

What are mark to market losses?

Guide to Managing Debt in Retirement

Retiring With Debt

How Much Debt Is Common to Have in Retirement?

Tips for Managing Debt in Retirement

Using Retirement to Pay Off Debt

Getting Out of Debt Before Retirement

Paying Off Your School Loans

Paying Off Your House

Paying Off Your Credit Cards

Paying Off Your Car

Saving for Retirement

Seeking a Financial Advisor

The Takeaway

FAQ

Is it wise to use retirement to pay off debt?

How much debt is common to have at retirement?

What percent of Americans retire with debt?

How Does Magic Formula Investing Work?

What Is Magic Formula Investing?

What Is the Magic Investing Formula?

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