The Stock Market is Emotional. That Doesn’t Mean You Have to Be

If you’ve been investing in the stock market over the years, then you’ve probably heard–and seen–that the stock market moves based on emotion. Things such as societal movements, politics, or financial predictions can force movements in the market to happen. This is also what makes the stock market–and other associated markets–unpredictable. If you don’t understand and respect that unpredictability you can lose a lot of money. However, you don’t have to use emotion to drive your investment decisions. In fact, you should try to keep your emotions as far away from your investment and financial decisions. Using your emotions to Continue reading The Stock Market is Emotional. That Doesn’t Mean You Have to Be

Diversification For the New Year!

It’s been a while since I last harped on the importance of diversification and making sure that you are spreading the risk around in your investment portfolio. Now that we are into the new year–and a new decade–now might be a good time to talk about it again. Diversification means investing in various stocks and market sectors so that you are not just putting all your risk on one place. By spreading the risk around, your portfolio won’t be as hard hit by market swings. For example, if you have some of your portfolio invested in the tech sector, for Continue reading Diversification For the New Year!

When Investing, Be Sure to Look at Both Sides

If you follow the markets and investing, then you are probably aware of the terms “bull” and “bear” when describing their projected activity. A “bullish” market is on the upswing, while a “bearish” market is in decline over a period of time. This is important because given how the stock market has performed over the past year or so, it’s not very clear as to where exactly things stand, so you will likely have people with various views and opinions about whether it’s a bear or bull situation. You may even find yourself feeling strongly about one trend or the Continue reading When Investing, Be Sure to Look at Both Sides

Out of the Accumulation Phase and Into the Distribution Phase

After decades of saving for retirement, it can be difficult to switch over to a spending mindset. Now, I’m not saying you won’t be looking forward to retirement, but from a financial standpoint, it isn’t always easy, especially if you’ve been very diligent in your retirement saving. There is where protecting your portfolio comes into play. Once you reach retirement, you want to take steps to make sure your nest egg will last. In doing so, you want to keep your money in the markets, but you will want to lower your risk. This means diversifying your investments (but not Continue reading Out of the Accumulation Phase and Into the Distribution Phase

The “I” in Investing When It Comes to Risk

Investing is more than just a numbers game. By that, I mean that you can have all the valuations, trends, and numerical data and still make bad investment choices or create a losing strategy. Most likely it’s because you don’t understand the risk in connection with where you are at in life. For example, a young investor (i.e. someone in their 30s) is in a much different place than an older investor (i.e. someone in their 50s). That younger investor can absorb a lot more risk than an someone older. Why is that? Because that younger investor has more time Continue reading The “I” in Investing When It Comes to Risk

Preparing for the Risky Retirement Period

If you are more than 10 years away from retirement, then you probably aren’t thinking about the few years immediately before and after you retire. If anything, you’re probably most focused on whether you have enough saved at this point and when you might actually want to retire. As you move closer to retirement, you should pay attention to the five years before and the five years after you retire as that is the period of time that sets the tone for your retirement. It’s also a period of time during which your nest egg is most vulnerable. This is Continue reading Preparing for the Risky Retirement Period

The Stock Market Isn’t About Getting Rich Quick

You’ve probably seen it played out in television shows and movies where someone buys a stock and suddenly the value skyrockets and they become super rich. Yes, there are even stories of it happening in real life (of course with lots of luck involved). These instances and fantasies can make investing in the stock market very enticing. However, it’s important to remember that the stock market won’t make you rich overnight and that you need to be savvy when you use it. That means doing research and being smart about how and when you invest your money. You will want Continue reading The Stock Market Isn’t About Getting Rich Quick

Making Peace With the Long Game

If you’ve invested your retirement savings or have a portfolio that you plan to use to fund part of your retirement, then you probably understand that such investments take time to mature and grow. In fact, it may take decades for your nest egg to build up through investments. During that time it can be tough to be patient and have faith in your investments, especially when the market goes through a downturn or struggles. During those times, it can be tempting to go and change your portfolio around and chase investments that may seem to be trending upwards. However, Continue reading Making Peace With the Long Game