The stock market does not rise in a straight line. But our economy and people have always persevered and prospered on the other side of difficult times. With such a solid record of long-term growth, there is far more risk for the long-term investor in being out of the market than in it.
The success of a long-term wealth management plan is built day by day, and brick by brick. And the exact investment products that you choose is much less important for success over time than the fact that you consistently invested according to your plan, listened to your advisor, and kept your investing behavior aligned with your goals.
When musician and songwriter Prince died without a will or estate planning in 2018, he left his heirs with a confusing and costly estate resolution mess which could take a decade and $100 million in costs and fees to resolve. By taking a few simple estate planning steps now, you can spare your friends and loved ones additional pain and…
While guests on financial television shows may be intelligent and well-meaning, absolutely nobody knows what will happen tomorrow, next week, or in a year, and we should not pretend that they do. Everyone connected with financial television has their own agenda and incentives, so watch wisely.
While many financial help gurus preach a focus on eliminating small costs, such as a daily cup of coffee, a focus on the larger aspects of financial planning can be much more important over time. If we are consistent in funding our 401k account, buying a house that we can afford, and not carrying a credit card balance, then we…
The stock market has averaged a 9.5% return over the last 90 years, but the return my vary widely from year to year. To enjoy the years when the stock market rises sharply and delivers strong returns, an investor must stay strong and persevere through the years in which the market performs poorly. This volatility is a long-term investor's best…
What you achieve and how high you fly during your life is strictly up to you. Hard work and perseverance in your twenties and thirties will matter much more to your eventual success than what strangers thought of you when you were nineteen. History is not written by rankings; fortunately, your future is forged only by you.
There is no brilliance in harnessing the power of compound interest to grow wealth over time. An investor simply needs patience and a long-time frame, and the power of compounding will do the work by itself. Start early. Invest often. Don’t touch the balance. And magic will happen to your small investment over time.
The big scary monster that will ruin your retirement account is not the stock market. It is not the inevitable economic recession. It is not the typical volatility of the financial markets. It is not trade policy, political party upheaval or tax laws. It is only YOU who can derail your plan.
A frequent question I hear from well-meaning investors is this: “Hey, I read that China owns U.S. government bonds worth $1 trillion and if they decided to dump them into the market it could spike interest rates overnight and crash the U.S. economy. Are you worried about that?”
Non-standard investments for a retirement plan may seem like a great idea, but take care to ensure that the market is not over-crowded with other folks with the same plan.
