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.
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.
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.
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.
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.
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.
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.
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.”
I’m so glad that today’s culture has finally given a name to something that has killed many investors in the past. FOMO. When you hear about the fear of missing out, doesn’t it make you realize that this is something you should not be concerned with?
We’ve all heard that we should be diversified, but what does that mean? It means to own a lot of things that you expect to do well over time but that don’t always do well at the same time.
Here’s how most people invest: Act on impulse, React to things they see in the news, Do what their friends are doing, Do their own research and convince themselves they can see what the future holds, Bet their life savings on tips and hunches. Don’t be like most investors!
Every dollar you have should have a job. If you aren’t giving a job to every dollar then your dollars are working against you.
What is Financial Planning? I like to think about it in a very simple way. You need to have clarity in your finances before you can have control. Once you have control, you can be very intentional.
Today we are talking about legacy gifting. You may think you are too young to think about this, but I think you’re never too young to begin structuring your investments for the right long-term outcome.
Last week we talked about the three types of accounts we can use for our Long-Term Portfolio and I said it’s important to have balances in all three types. The Already-Taxed or Roth account is the most difficult to contribute to so I want to talk this week about how we can get money into a Roth by making conversions.
We want to use all three of these when investing our Long-Term Portfolio and I’ll tell you why in a moment. But first, I want to talk through how each of them works.
Once you have a plan in place to sell your Company Stock over time, be sure that money has some place to go. We don’t ever want our money to be without a job and the cash you get from your Company Stock is no exception.
Taxes are a fact of life. I talk to a lot of people who are trying to find the super-secret way that people with money avoid paying taxes. I’m here to tell you – it doesn’t exist.
We make decisions in everyday life based on seeking a reward given the risk we are willing to take. Without risk, there is no reward.
Diversification is the key to any successful portfolio. However, recently, individual tech stocks have been all over the news and I’ve been getting asked, “How much company stock should I have?” or “Do I have too much?”