One of the most important loan products to understand

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Photo by Precondo CA on Unsplash

A Federal Housing Administration (FHA) loan is a type of mortgage insured by the FHA and is issued by an FHA-approved lender. It can be used on residential properties ranging from single-family homes to four-plexes. FHA loans typically have 15-year or 30-year terms.

The FHA was established in 1934 by Congress through the National Housing Act of 1934. It was during the Great Depression when the housing industry was in extreme trouble. Back then, approximately 40% of households owned their homes. …


Target Price isn’t everything, but it can simplify your investing

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Photo by Mihai Lazăr on Unsplash

A target price is a projection of a security’s future price. Target prices can come from using fundamentals such as revenue, earnings per share, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). It can also come from using technicals such as historical price action, price momentum, and statistics.

When it comes to ETFs, locating their fundamentals can be slightly time-consuming and not very convenient for everyone. Typically, you will likely only find its current fundamental metrics such as price-to-earnings ratio and return on equity. …


Make understanding price action easy for yourself

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Photo by Markus Winkler on Unsplash

Once you have conducted your fundamental analysis on a company, it is time for you to conduct some technical analysis to help determine at what price you want to buy shares of the company. The great thing about doing technical analysis for a long-term investment is that your entry does not have to be 100% precise. Since you are planning to hold onto a security for 5,10, 15, etc. years, buying at what is considered a slightly high price in the short-term will not be the end of the world for you.

When it comes to technical analysis for long-term…


Make fundamental analysis easy for yourself

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Photo by Anthony Esau on Unsplash

Fundamental analysis is a key aspect of gaining a deeper understanding of a company. Spending some time and reading up on what a company is doing, how they are performing, and what their overall sentiment is from analysts and investors is important. Fundamental analysis can go in many different directions, so I like to boil it down to 5 simple factors to understand a company better. The 5 simple factors to consider when doing fundamental analysis on a company are:

1. Business Strategy

2. Profit Drivers

3. Market Risks

4. Leadership

5. Economic Moat

1. Business Strategy

A business strategy…


Become familiar with the companies leading the cybersecurity space

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Photo by Artem Bryzgalov on Unsplash

Cybersecurity is the protection of computer systems and networks from the theft or damage of their hardware, software, and/or data. Cyber threats have been on the rise during the coronavirus pandemic. Thankfully, there are leaders in the cybersecurity space that are combatting these cyber threats. According to The Business Research Company, the cybersecurity services market size is expected to grow at a compound annual growth rate of 8% by 2023 to a $91.09 billion market size from $66.86 billion in 2019. …


Learn about balancing risk and reward in your portfolio

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Photo by JOSHUA COLEMAN on Unsplash

When it comes to investing, asset allocation is important to consider. Asset allocation is an investment strategy that aims to balance risks and rewards in your portfolio. The main asset classes you should be familiar with are equities, fixed income, real estate, commodities, cryptocurrencies, and cash. In taking a look at your portfolio, your asset allocation boils down to your risk tolerance and the goals you have laid out for yourself. When it comes to breaking down how much asset allocation should matter to you, the following 3 points will help to simplify it:

1. The Main Asset Classes

2…


Make choosing the right credit card for yourself simple

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Photo by Markus Winkler on Unsplash

I know, finding a new credit card for yourself can be time-consuming. You would rather stick to the two credit cards you have now, but you know that it is time to get a new credit card that offers better rewards and still fits within your spending habits.

When it comes to finding a new credit card or doing research in general, I like to create a process to simplify what I need to do to avoid wasting time. For finding a new credit card that you will be able to maximize to the fullest, the following 3 quick steps…


Gain exposure to the fifth generation of cellular technology

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Photo by Shahadat Rahman on Unsplash

5G is the fifth-generation technology for broadband cellular networks. It was introduced in 2016 and began being deployed by cellular networks and phone makers in 2019. What is the big hype about 5G? The main advantages of 5G include higher download speeds (1 gigabit per second or more), lower latency (1 millisecond or less), and increased capacity for cellular networks. What does that mean? It means we get faster download speeds, less lag, and a lower likelihood of losing signal on a cellular network.

5G also opens the door for the Internet of Things (IoT), where we can have more…


The way to transfer securities from one brokerage account to another

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Photo by Joshua Sukoff on Unsplash

On January 28th, 2021, Robinhood decided to restrict the trading of certain stocks, with the main stock being GameStop, due to “increased market volatility.” GameStop’s stock experienced a historic short squeeze where its price saw an increase of over 1,550% within a month.

With the restrictions that Robinhood did last week, it led to a class-action lawsuit being filed against the company. Many enraged users took to platforms such as Twitter and Instagram to express their anger and share that they were leaving Robinhood. Some were not 100% sure of the best way to transfer their securities to a different…


An important rate that influences the economy

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Image Credit: Federal Reserve Bank of Chicago

The federal funds rate is a target interest rate set by the Federal Open Market Committee (FOMC), a committee charged with overseeing the nation’s open market operations. The rate determines what banks and other depository institutions can lend money to each other at, typically on an overnight basis.

It is important to note that the FOMC sets the target for the federal funds rate 8 times a year based on current and forecasted economic conditions. Whether people are aware of it or not, the federal funds rate is an important interest rate that can influence the economy directly and indirectly…

Tunji Onigbanjo

Financial literacy advocate. I’m not an expert, but why not share the knowledge that has helped me? Check out The Tunji Letter: tunji.substack.com

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