The Unpredictability of Investing

It’s easy to judge an investment in hindsight. What’s hard to do is to predict what will happen with an investment when you purchase it. If it’s stock, who knows how the company will perform over the long run? Will it’s products or services remain relevant? Will ownership continue to innovate? If you have invested in property (i.e. land or a building), will the improvements you make upon it work out? If you plan on renting it out, the rental market in the area remain strong or end up weak? These are unpredictable things that create risk with every investment. Continue reading The Unpredictability of Investing

Could Your Retirement Research Hurt Your Retirement Savings?

As I’ve said in many past blog posts, there’s a lot of data out there when it comes to retirement planning. Some of it helpful, some of it misleading or confusing. While I encourage you to go out and do your own retirement research, I just want to remind you that the information you are reading out there isn’t necessarily designed for someone in your exact situation. It may be written with someone in a similar earning bracket or age or similar socioeconomic background in mind, but not for you in particular. That’s important to keep in mind as you Continue reading Could Your Retirement Research Hurt Your Retirement Savings?

When Investing, Your Past Is Your Future

If you have used the markets to grow your nest egg and finances, how did you react to gains and losses? What did you do and how did you feel after market fluctuations? As with anything you interact with, your past actions and experiences with markets and investing can shape how you handle markets ups and downs in the future. This is important to understand because it can lead you to avoid making mistakes in the future as well as to understand the role that emotions play in investing. Emotions can cloud out rational thoughts, which in turn can lead Continue reading When Investing, Your Past Is Your Future

Be Smart When It Comes to Diversification

If your retirement savings are invested in the stock market or you are planning on using an investment portfolio to help offset the costs of retirement, you have probably heard plenty of talk about the importance of diversification. The purpose behind diversification is to help protect your portfolio against market swings so that you don’t get hit too badly when they occur. It’s a concept that can mean different strokes for different folks. To some, diversification may means investing in companies in various industries, while others may look at it as investing in different markets (i.e. stocks vs. bonds), while Continue reading Be Smart When It Comes to Diversification