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You Can Never Go Back

You Can Never Go Back

Our technological progress has only just begun. If you want to participate in this growth financially, the best approach is through company ownership in a diversified fashion among industries, geographies, and sectors.

Here’s a Secret: Your Financial Plan Is Wrong

Here’s a Secret: Your Financial Plan Is Wrong

They say close only counts in horseshoes and hand grenades. Close also counts in financial planning if you are diligent enough to continue to plan. Today’s financial tools offer terrific detail regarding your financial future.

Do Not Consider Investing in Real Estate (Including Your Own Home) With More Than 20% of Your Assets

Do Not Consider Investing in Real Estate (Including Your Own Home) With More Than 20% of Your Assets

If you create a pie chart of all your investment assets and real estate is more than 20%, do not consider investing in more real estate. I understand that your home may, itself, be greater than 20% and I’m ok with that because it is much more than just an investment.

Sell Your RSU and ESPP As They Vest

Sell Your RSU and ESPP As They Vest

Your Company Stock awards are part of your total compensation for work. They are not a bonus and they are not lottery tickets. You work hard for your company and part of your pay includes these stock awards.

Make No Predictions of Markets Over Short Periods of Time

Make No Predictions of Markets Over Short Periods of Time

Stock prices are determined by buyers and sellers, of course, but those buyers and sellers are entirely human. And humans are filled with emotions.

Rebalance Your Portfolio

Rebalance Your Portfolio

Your Long-Term Portfolio has target percentages for each fund and asset class. We start investing by placing those amounts in each fund so that we are perfectly balanced. The day you initially invest will be the last day you are perfectly balanced.

Structure a Portfolio Whose Behavior in Market Crashes is Acceptable

Structure a Portfolio Whose Behavior in Market Crashes is Acceptable

If you are 40 years old, you will likely experience 5 to 8 more market crashes during the rest of your life. You can try to predict them and trade through them, but history says you won’t be successful as no one has ever done so through more than one or two.

Keep the Same Investment Strategy Regardless of Your Stage in Life

Keep the Same Investment Strategy Regardless of Your Stage in Life

The markets do not care what stage of life you are in. I know that sounds funny, but we can sometimes think we should invest differently because of something going on in our own life.

Pay No Attention to the Financial Media

Pay No Attention to the Financial Media

The old school big firms in the financial industry make their stock market money one way. By processing transactions. They don’t care if you are successful as long as you do something and pay them a fee or commission.

Invest Everything Above Your Savings Target in Your Long-Term Portfolio

Invest Everything Above Your Savings Target in Your Long-Term Portfolio

Your Savings Target is the amount you want in savings so by definition, anything above this amount should be invested in your Long-Term Portfolio.

Do What’s Always Worked

Do What’s Always Worked

When tying your future wealth to something through investment, be sure what you are doing has always worked in the past. Don’t be distracted by the odd strategy or “opportunity.”

Be Optimistic

Be Optimistic

Things will improve, we just don’t know how. That’s what I mean by being optimistic and this is most important when markets crash.