Investing Archives - DIYmoneytrack.com

An overview of prediction market platforms

In my prior post, I introduced you to prediction markets and how they are gaining attention as tools for better investing.

In this post, I will explain the applications and use cases for prediction markets data, and compare the leading platforms.

At the end of this post, I also include a link for ways to safely and effectively use prediction markets as a non-trader. I created this content in response to a request for additional instruction on how to use prediction markets as a training tool for developing your analytical skills.

How following prediction markets can make you a better investor

You are probably familiar with stocks, crypto, and sports betting, but may be unaware of prediction markets. These markets sit at the intersection of finance, probability, and real-world events, and they’re gaining attention as tools for forecasting everything from economic trends to consumer behavior.

Even if you never trade on a prediction market platform, understanding how these markets work can help you think more clearly about risk, incentives, and decision-making—skills that directly impact you as a money manager and investor.

I’ve been closely following the evolution of prediction market platforms. Although I do not transact in these markets, I analyze information from these platforms to improve my understanding of markets for personal financial planning.

To help you better understand prediction market analysis and platforms, I’ve written two posts. This post introduces you to prediction markets and how they can be used to help you become a better investor. The second post provides an overview of how these platforms function and their differences.

Please read on if you are interested in learning more about emerging prediction markets and platforms.

Your first 401(k): How to start strong and build wealth for the future

Starting your first job often comes with a big perk — access to a 401(k) retirement plan. Enrolling might feel confusing at first, but the choices you make now can have a huge impact on your financial future.

Here are eight ways to make the most of your 401(k) from day one (and beyond), with real numbers to show the difference your decisions can make and digital tools available to help you optimize your accounts.

Lump-sum vs. Cost-averaging: Which investment strategy is right for you?

So, you’ve got a tidy sum of money – maybe an inheritance, a generous bonus, or years of careful saving – and now you’re faced with a classic investment dilemma: Do you invest it all at once (lump-sum) or spread your investments out over time (cost- averaging*)?

Both strategies have pros and cons, and understanding them can help you make an informed decision for your financial future. If you are interested in learning more about these investment methods, please read on.

How to maximize your return on savings to reach financial goals faster

Are you maximizing your short-term savings return?

If your answer is “I don’t know” or “probably not,” then read this post to find out how to make ‘easy’ money simply by moving shorter-term savings to higher yielding accounts.

Whether you’re saving for an emergency fund or a vacation, improving the return on your savings accounts will help you reach your goals faster.

The difference between leaving cash in a traditional bank or brokerage savings account and investing it in a high-yield savings account can be worth thousands of dollars. Opening and moving money between savings accounts has never been easier, so chasing short-term yields online can be done with a few ‘clicks’.

And with annual inflation currently around 2.4% in the U.S., a short-term savings account yielding over 3% (assuming 20% tax rate) may even increase your purchasing power.

Read on to learn more about maximizing your short-term savings rate and where to find the best accounts.

How to minimize fees to maximize your big money returns

As referenced in my new book Making Big Money Decisions and recent blog posts, transaction fees can take a big bite out of your returns. The good news is that the costs for holding investment funds and selling a house in the USA continue to decline, allowing you to keep more of your money. Since these investments are usually large, even small differences in the fees you pay can add up to significant amounts of money over time.

If you are interested in finding out more about these transactions costs and tips for ensuring you are paying the lowest fees, then please read on.

Are your investments outperforming the market?

How do you know if your investment portfolio is performing better (or worse) than the market?

The answer is your investment alpha.

Alpha is a measure of an investment’s performance compared to a benchmark, like a market index.

If your investments are not meeting or exceeding your benchmark(s) over a time period, then you may need to reevaluate your investments and strategy.

As referenced in my book Making Big Money Decisions, investing in underperforming assets generates considerable opportunity costs and suppresses wealth accumulation. Use the content in this post to ensure you’re getting the best return on your invested money.

By reading this post, you will learn why alpha is a key performance indicator for managing your investment portfolio, and how to calculate and use it to optimize your investment strategy.*