How To Keep & Grow Your Money #14

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In this letter we analyze the iShares Russell 1000 Growth ETF (IWF).

Ticker: IWF | Price: 382.92 | Market Cap: $99.8B | Average 10-Year Annual Return: 16.32% (as of October 2024).

What is it (short): The iShares Russell 1000 Growth ETF is a fund that tracks the performance of large and mid-sized U.S. companies with growth characteristics. These are companies that are expected to grow earnings at a faster rate compared to the broader market, with top holdings like Apple, Microsoft, and Amazon.

What is it (long): The iShares Russell 1000 Growth ETF aims to provide exposure to growth stocks within the Russell 1000 Index, which represents the largest 1,000 U.S. companies. Growth stocks in this index tend to reinvest their earnings into the business to achieve higher future growth rather than paying out dividends. It is heavily weighted toward technology and consumer discretionary sectors. The ETF is passively managed and seeks to replicate the performance of the Russell 1000 Growth Index, making it attractive to investors looking for long-term growth potential.

Our thoughts: IWF is ideal for investors who believe in the growth potential of large U.S. companies and are willing to ride out market volatility for potentially higher long-term returns. The ETF's exposure to leading tech companies means it has benefitted from the tech-driven market boom but may also be subject to greater short-term volatility. It’s a strong choice for those with a higher risk tolerance and a focus on long-term capital appreciation.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

5 Popular & Easy Second Residency Programs?

Here are some of the best countries with easy second residency programs that offer simple pathways to obtaining residency, often through investment or other streamlined methods.

Some of the key countries and programs include:

1. Portugal: Known for its Golden Visa program, Portugal offers residency through real estate investments starting at €280,000. It's popular for its visa-free Schengen travel and the possibility of applying for citizenship after five years.

2. Panama: The Friendly Nations Visa allows citizens from specific countries to obtain residency by making a small economic investment or opening a local business. The program is fast and affordable.

3. Uruguay: Uruguay has a straightforward residency process that does not require a large financial commitment, making it a favorite among those looking for a laid-back lifestyle and political stability.

4. Mexico: Offering a temporary residency visa, Mexico allows applicants to qualify through financial means or by having a steady pension. This residency can be converted to permanent residency after a few years.

5. The Bahamas: Their residency by investment program allows investors to gain residency by investing in real estate or key economic sectors. Permanent residency is also possible after 10 years.

These programs are attractive to global citizens looking for lifestyle flexibility, tax benefits, and the ability to travel freely. Each country's program has different requirements, ranging from investment in real estate to opening businesses or proving financial self-sufficiency.

The appeal is the ease and speed of obtaining residency, often leading to permanent residence or even citizenship down the line.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial concept to learn in this edition: Stop-Limit Order

A Stop-Limit Order is a type of order used in stock trading to buy or sell a stock once its price reaches a specific stop price, but only at a predetermined limit price or better.

Here’s how it works:

• Stop Price: This is the trigger. Once the stock hits this price, the stop-limit order becomes active.

• Limit Price: After activation, the order will only execute if the stock can be bought or sold at this price or better.

Example:

If you own a stock currently priced at $100, and you want to protect yourself from a sharp decline, you could place a stop-limit sell order with a stop price of $90 and a limit price of $88. Once the stock drops to $90, the order activates, but it will only sell the stock if the price remains above $88.

Relevance to Investors:

• Risk Management: Stop-limit orders help investors lock in profits or minimize losses by allowing them to set price ranges for selling or buying.

• Control Over Execution: Unlike market orders, stop-limit orders ensure that the investor won’t get a worse price than expected. However, this comes with the risk that the order may not execute if the stock’s price moves too quickly past the limit.

To learn more about Stop-Limit Orders read more on Investopedia here or learn more on how to invest here.