Tag Archives: risk

Having Money and Properly Managing It are Two Different Things

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Just because you have lots of money doesn’t mean you’re necessarily a financial wizard. Society is littered with famous celebrities who have squandered massive amounts of money through various means, such as bad investments or poor spending habits. I’m not saying we need to be sympathetic to celebrities who make millions, but their stories, when looked at together, can provide an important lesson for all of us. That is, that having money and being able to properly manage it and care for it are two different things. In other words, just because you have money doesn’t mean you will know Continue reading Having Money and Properly Managing It are Two Different Things→

Going It Alone Investing? Be Smart About It

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Thanks to technology, it’s easy to become an investor these days. All you need is Internet access and a device and you can open a brokerage account. Such ease can be exciting and make one feel as though they have more control over their finances and future. However, it can also be dangerous. The ability to invest your money with the touch of your finger can also lead to a nonchalantness about investing and money. It’s not uncommon for people to get a bit carried away with investing when they first start using apps such as E*Trade or Robinhood. A Continue reading Going It Alone Investing? Be Smart About It→

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

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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→

Scratching a “Risk” Itch

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As I’ve mentioned in the past, investing can be a great way to grow your nest egg. With a good understanding of your risk appetite and your goals–both long-term and short-term–you can make investment decisions that can put your money to work for you. However, making cautious investment decisions can seem boring at times, especially making decisions regarding long-term goals (i.e. saving for retirement while decades away). It can also be tempting at times to play with the markets a bit and experiment with taking on a little more risk than you normally do. Now, I’m not suggesting you risk Continue reading Scratching a “Risk” Itch→

Have Your Checked Your Portfolio’s Asset Allocation Recently?

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It’s been a rough month for the stock market and for many peoples’ portfolios. There’s been a lot of money lost and a lot of stress added to the lives to many Americans, regardless of whether they are still working or retired. After all, the markets don’t really care where you are in life or what your plans are. With that in mind, now is a good time to assess your portfolio and take some time to determine where your appetite for risk lies. During your assessment, take some time to find out what changes you will need to make Continue reading Have Your Checked Your Portfolio’s Asset Allocation Recently?→

Putting Your Appetite for Risk to the Test

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Yes, it’s another blog post about investing. What can I say, it’s a very hot topic right now. Given how many Americans have retirement savings and nest eggs tied up in the stock market, it’s also a very relevant topic. When it comes to investing, risk is a big part of things. Your understanding of it and how much you are willing to take on are foundational when it comes to making investing decisions. Given the recent market volatility, it’s fair to assume that many Americans’ tolerance for risk are being tested at the moment. Most likely, yours probably is Continue reading Putting Your Appetite for Risk to the Test→

How to Handle the Stock Market Today

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The stock market has been on a downward spiral for almost a week at this point, which has created a lot of worry among even the most amateur of investors. Most reports indicate that the fall is a result of Coronavirus concerns sweeping the globe at the moment, but there may be other factors combined with that. This downward movement–or market correction, depending on who you talk to–has done a serious number on many portfolios and retirement accounts and it’s unclear as to when or how things will recover. While you shouldn’t ignore the market downturn, just remember that you Continue reading How to Handle the Stock Market Today→

Diversification For the New Year!

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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!→