financial literacy category

The Financial Literacy category identifies tutorials and reference material that provides background on the subjects and processes used in retirement investment management.

There are a lot of financial and investing terms used throughout the site. If you would like to learn more about these topics, we have provided linnks to some of the best resources on the web. These are freeely available for your information.

We have reviewed the information presented and believe that it is a factual representation of the information. Where opinions are offered, they are in line with our thinking on the subject. However, the information is subject to change and is the property of the copyright holder.

  • Modern Portfolio Theory
    Introduction to Modern Portfolio Theory: understand diversification and the Efficient Frontier, find a portfolio with the maximum Sharpe Ratio; why index funds are theoretically optimal.
  • Exchange Traded Funds (ETF)
  • Stock Valuation
    Learn the logic of stock valuation with a discounted cash flows calculator… plus P/E, P/S and PEG ratios, CAPM, DDM … Buffett’s secret formula
  • Short selling
  • Futures
    Trading Futures, Though Risky, Is Getting Easier – Futures are contracts to buy or sell an underlying item, ranging from commodities to financial products, on a future day for a preset price — although the assets themselves rarely change hands.
  • Options
    Options Trading Tips for Success – requires three key elements – bargain-hunting instinct with the ability to identify undervalued and overvalued options, sound and well-designed game plan that provides consistent action over time and that works in all market conditions and discipline to follow the game plan.

Sources of information

  • MoneyChimp MoneyChimp seeks to be the most coherent, logical, useful and accessible financial education resource on the face of the earth
  • OptionsXpress Educate – links to educational information about investing in general and specificly about trading options


  • indicators
    • technical : accurate green – good, reliable information, factually supported, opinions in line with ours
    • technical : some inconsistencies blue – ok, but may contain information that could be misinterpreted
    • technical : misleading red – contains factual errors, staements made can not be substantiated or opinion expressed is in conflict with ours
  • technical : accurate technical : some inconsistencies technical : misleading technical / mechanical – describes an investing concept (eg. ‘naked’ puts) or explains how a financial process works – buying options, selling short
  • opinion : similar opinion : diverging opinion : opposing judgemental / opinion – interpretation based on facts, knowledge and beliefs, may be speculative
  • degree of difficulty – overview overview, general info general information, in-depth advance / in-depth /extensive discussion of information related to the topic and may be of academic interest