The Gordon Growth Model, Explained: How One Formula Values a Dividend Stock
A dividend stock is worth next year's dividend divided by required return minus growth — the Gordon Growth Model, plus the two-stage fix.
#personal-finance
Personal Finance
Personal money management and financial wellness strategies
Securities Lending, Explained: How Your Broker Lends Your Shares to Short Sellers and Splits the Fee
Your broker can lend your fully paid shares to short sellers and split the fee — but lent shares lose SIPC cover, voting rights, and qualified-dividend rates.
Street Name vs. Direct Registration (DRS), Explained: How Your Broker Holds Your Shares
Street name puts Cede & Co. on the company register; DRS puts your name there. How each works, what transfers cost, and which fits your holdings.
Bond Ratings, Explained: How S&P, Moody's, and Fitch Grade Default Risk
BBB- (S&P/Fitch) or Baa3 (Moody's) is the lowest investment-grade bond rating — fall below it and forced selling reprices your bonds.
The Capital Asset Pricing Model (CAPM), Explained: How Beta Turns Market Risk Into an Expected Return
CAPM sets your required return at the risk-free rate plus beta times the equity risk premium — three inputs that tell you what any risky asset must earn.
Brokered CDs vs. Bank CDs: Why the Same Bank Pays Different Rates Through Your Brokerage
Brokered CDs can beat bank CD rates, but pay simple interest, are often callable, and exit at market prices — compare APY to APY first.
T+1 Settlement, Explained: Your Stock Trades Now Settle the Next Business Day
T+1 means your stock trades settle the next business day — less margin float, a smaller good-faith-violation window, and ex-dates shifted one day earlier.
Transfer on Death, Explained: How TOD Deeds, POD Accounts, and TOD Securities Bypass Probate
TOD and POD designations move bank accounts, brokerage holdings, and real estate to your beneficiary without probate — but creditors and taxes still apply.
Revocable vs. Irrevocable Trusts: What Really Changes When You Give Up the Power to Amend
A revocable trust avoids probate but stays in your Federal taxable estate; an irrevocable trust removes assets from it — at the price of control.
TIPS, Explained: How U.S. Treasury Inflation-Protected Securities Adjust Principal to CPI
TIPS raise your bond principal with CPI-U and pay a fixed rate on the higher base — but the IRS taxes each year’s adjustment as phantom income.
15-Year vs. 30-Year Mortgage: The $354,000 Decision Hiding in Your Monthly Payment
A 15-year mortgage saves about $354,000 in interest on a $400,000 loan but costs $770 more a month — the math, the DTI trade-off, and the pay-like-a-15 hybrid.
GnuCash vs. KMyMoney vs. HomeBank: Which Free Accounting App Fits Your Books?
GnuCash handles invoicing and investments for small business, KMyMoney brings double-entry to personal finance, HomeBank wins on easy budgeting.