For decades, many financial experts have had a standard line on life insurance: "Buy term and invest the rest." According to this thinking, a low-cost, bare-bones term policy offering a death benefit but no investment return was the best way to protect loved ones. And the money saved could go into stocks, bonds, or mutual funds that would be easier to manage than the investment component of a complex and costly "cash-value" life policy. But various types of cash-value policies have always had...

Treasury inflation-protected securities won't make you rich, and they can be whipsawed by interest rate changes. So why would anyone buy these government-issued bonds? Because they're really good at one thing: protecting against the ravages of inflation. And today, with the economy heating up, unemployment at rock bottom and wages beginning to rise after years of stagnation, investors may wonder if they need some extra inflation protection. "Inflation is the biggest genuine threat for...

U.S. government and corporate bonds have been stingy for a decade, and now there's the added danger that rising interest rates, while making bonds a tad more generous, could drive down prices. So, what about looking farther afield for bonds that pay more – to emerging markets like South Korea, Brazil, Mexico or Thailand, for instance? "In a low interest rate environment, higher yields found in emerging-market bonds are attractive," says Ryan L. Davis, assistant finance professor at the...

With year-end statements, W-2s and 1099 forms arriving, it's time to look for ways to trim capital gains tax liability, especially given the many changes that kicked in for 2018 due to the tax law passed just over a year ago. As always, the end of the tax year – Dec. 31 – closed the door on many opportunities to save on your tax bill, like selling losing investments to book capital gains tax losses. But experts say a few tax tips are still possible for investors, mainly by contributing to...

Most investors know the merits of diversification – owning different stocks and bonds so that when some go down others go up. By spreading your money among a number of mutual funds, you can spread your eggs among many baskets. But what if Fund A and Fund B have many of the same holdings? Then your portfolio may not be as diversified as you think. Inadvertently concentrating your money can stunt gains and amplify risks. "This is a far-too-common problem," says Dan Kern, chief investment...