Last week a reader asked if closing his 401k made sense in light of the sharply declining stock prices. The short answer is no, but a commenter wondered if this was always true.
Playing a little Devil’s Advocate–and someone asked me about this–why do we have to stick it out? What if the [...]
Many financial advisers emphasize the importance of building a large nest egg. While a large nest egg is a great idea, this strategy can make people focus on the future at the expense of the present.
That’s a trade off we’re not willing to make.
Many people view their retirement balances as the solution to their situation–working [...]
Bull market. Recession. Scandal. The latest economic trend.
The financial media is built around the idea that you can successfully time the market. The hundreds of prognosticators more than happy to tell you (and everyone else) what to buy and sell and when to do it.
But there’s a problem with this premise. The ideal time to [...]
No, this isn’t an unfinished post, accidently published. Instead, it’s a reminder that our financial lives always are a work in progress as we earn, spend, and save to maximize our happiness.
Our every-day decisions involve balancing current desires with the future rewards that come from delayed gratification. But at what point does trading our time [...]
Have you heard that advertising campaign about people almost helping their neighbors? It’s a powerful message. Sometimes we think about doing good, but we fail to follow through.
The thought is either pushed aside or we fool ourselves into thinking that it’s the thought that counts. We’ll just do that later.
With investing, like doing good, the [...]
Have you ever wondered how to get rich investing in the stock market?
Would you like to know how the most successful investors made their fortunes?
Are you confident you can accomplish anything you set your mind to?
If you answered yes to all of these questions, relax, you’re normal.
Unfortunately, you’re also probably on the path to financial [...]
Last time we talked about stock ownership and how it’s different from gambling, but that risk still remains.
In particular, the risk that your companies may go out of business, leaving you with stock worth little more than used lotto tickets.
This is a very real risk. Fortunately there is a reasonably safe solution. But first, lets [...]
When I hear this question, occasionally I am tempted to respond ‘what is gambling’?
This isn’t just a flippant response—it is that—but it is also useful for clarification.
One definition of gambling is the attempt to win against overwhelming odds, essentially hoping that you’ll receive an over-sized pay-out.
Of course, gambling comes in a variety of forms from [...]
Every year, investors miss out on millions of dollars that could have remained theirs.
These millions are taken from big and small investors alike, but the investors all have one thing in common—they invested their hard earned funds in high cost mutual funds.
Some people (brokers and mutual funds mostly) will claim that higher costs translate into [...]
Like all new year’s resolutions, the sooner we change, the more we benefit. And much like our health, the consequences of poor financial decisions can take years to appear. Fortunately, it is possible to restore our financial health later in life.
Just like exercise, but different
But just like exercise, the longer you delay saving, the harder [...]
