Choosing to save money means you have a reason to delay spending, and that you have chosen savings goals that meet your aspirations for the future. In the words of the great philosopher Geddy Lee from the band Rush, "If you choose not to decide, you still have made a choice." Living for today means living in the moment, but it does not mean we do not need to make plans for the future. We all … [Read more...]
Are You Content With Your Stock Exposure?
Coping with volatile stock markets means having stock exposure that is tailored to your individual risk tolerance. When set correctly, you will not lose sleep when there is a correction...like the one happening now. Don't do something, just stand there. - John Bogle If you have to do something, re-assess your risk tolerance. - NoRobo Guy As I write this, the stock market is down … [Read more...]
The Peak of My Delusion
Investing in single stocks can be exciting, but they can also be hazardous to your financial well being. Here is how I learned that lesson the hard way. It was the late 1990s, and the stock market was booming. You had to try not to make money. I was at the peak of delusion, the most extreme point of self-deception. My skill in picking stocks was the catalyst of my good fortune. During this … [Read more...]
Robo Advisors: Easy or Too Easy?
Robo-advisor services are sold to investors looking for an easier way to invest. There are added costs, but even worse, Robos do not involve the investor very much. They even use that aspect as a selling point. They program the decision-making process. Investors should not be shortchanged in the processes of studying, considering, understanding, and then deciding each portfolio investment. … [Read more...]
Automate Your Investments
You can automate and manage your own investments easily, and without fees. Setting up an automatic investment plan is simple, and costs nothing to implement. Best of all, you are in control of the plan if you need to make changes, and you don't need a robo-advisor to do it. An effective way to save and invest with discipline is by automating the process so you don't have to think about it … [Read more...]
Timing Recurring Investments
Investors are always looking for ways to improve returns, including adding steps to determine when to add new investments to a portfolio. This post explores timing strategy, and why the practice of managing the contribution schedule will make improving returns unlikely. One of the basic principles of sound investing is 'do not try to time the stock market.' With that in mind, let's consider … [Read more...]