People do it all the time. In the face of their worst imaginable fears, they do it. Probably not because they want to. They do it, maybe, because that’s the way we humans are wired. What do they do? They continue. And the only thing that might be driving them is faith in the future. A faith that the future will be better.
We all make mistakes – I know I’ve made my share. But for some reason, when it comes to investing, we are prone to repeating our mistakes – over and over. I think it’s because the “lesson” we tell ourselves we learned isn’t the right one.
How much will you spend in the future? This is an important question, and we can get nearly there by looking at your current expenses. However, the biggest determinant of your future spending is actually inflation.
How much will you spend in retirement? This is an important question, and we can get nearly there by looking at your current expenses. However, the biggest determinant of your future spending is actually inflation.
If you are in the savings/investing mode, would you rather stock prices today be over or under the true value of the companies you are buying?
Needing access to your investment accounts in an emergency creates enough of a logistical hurdle but holding investments that may take weeks or months to sell can really cause a problem.
Having invested other people’s money for more than 30 years and studied other managers doing the same, it is clear to me that the markets cannot be beaten.
Do you want a guaranteed investment return? If you answered yes, I hope you added the condition that it depends on who is providing the guarantee and what that guarantee actually is.
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.
Stock prices are determined by buyers and sellers, of course, but those buyers and sellers are entirely human. And humans are filled with emotions.
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.
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.