If you buy on a down day, the market could fall further—but at least you know stocks are cheaper than they were.
SOME YEARS AGO, I had a health scare—and it taught me an important lesson about my relationship with money. My primary care physician wanted me to see a hematologist. “Your white blood cells have been trending lower for the last five years,” he opined. “We need to find out what’s causing it.”
After a number of tests, the hematologist thought I might have a rare blood disease. He said the test results were inconclusive,
IN DECEMBER, I fell head first onto the bathroom floor. The doctors agreed I had a mild concussion. These typically heal in four-to-six weeks, but it’s now been five months. In March, I dislocated my left knee cap during an afternoon stroll. I was suddenly unable to put any weight on my left leg.
These two unrelated injuries have required me to see an array of medical professionals and undergo multiple tests, including two magnetic resonance imaging (MRI) scans,
OWNING a business comes with a unique opportunity: the chance to better the lives of your employees. The paycheck you provide helps them pay for their daily expenses and supports the local economy. But there’s an opportunity to do even more: By being thoughtful in how you structure employee benefits, you can ensure they have a more prosperous future, while also helping them lead happier lives today.
Remember, money is simply a tool to help you enjoy your life—and one way to do that is to buy time.
ONE SPRING DAY in 1995, McArthur Wheeler walked into two banks near his Pittsburgh home and robbed them at gunpoint.
His plan had one critical flaw: The disguise he chose didn’t hide his face at all. Instead of the usual stocking cap or hat and sunglasses, Wheeler made an unconventional choice. He applied a coating of lemon juice to his face. His reasoning: Lemon juice could be used to make invisible ink, so Wheeler figured it would have the same effect on his face,
THE GREAT Recession highlighted the frightening amount of debt—especially mortgage debt—that had been taken on by many American families.
A decade later, the picture is far brighter, with one exception: student loans. Since 2008’s third quarter, education debt has ballooned 144%, according to data just released by the Federal Reserve Bank of New York. But the total of all other debt—mortgages, car loans and credit card balances—is up less than 1% over the same period.
I HAD TO PAY my credit card bill, so I went online and set up a payment from my credit union a week before the bill was due. Why not, it’s an online transfer, right?
Not always.
The payment was due on the 16th. I went online the day before to check my bank account. It said the credit card payment was “sorted” and hadn’t transferred. Same thing the next day and the next.
OVER THE PAST five years, mortgage debt outstanding is up 11%, auto loans 45%, credit card debt 29% and student loans 34%, according to the Federal Reserve Bank of New York.
NO. 15: WE SHOULD retire our debts before we retire from our job. Paying off debt cuts our living expenses, plus that debt is likely costing us more than we’re earning on our bonds.
NO. 84: IF YOUR portfolio earns 6% annually and you spend the entire 6% every year, you’ll face a financial reckoning. The spending power of the 6% will shrink with inflation, forcing you to either cut your standard of living—or dip into principal to maintain it. The latter is dangerous, especially early in retirement, because you can quickly eviscerate your nest egg.
HAVE A FAMILY talk about college. How much financial help can you give your children? If they’ll need to shoulder part of the cost, tell them long before they start eyeing colleges. What career do your teenagers plan to pursue? If they’ll likely end up with a modest income, counsel them against colleges that will require hefty student loans.
INSTINCT VS. REFLECTION. Our brain’s instinctual side makes most decisions. That’s usually a plus: Our instincts tell us to jump out of the way, even before we’re fully aware of the speeding car. But our instincts can also lead us to overspend and panic when markets decline. Making money decisions? Hit the pause button, so your brain’s slower-moving, contemplative side can weigh in.
SOME YEARS AGO, I had a health scare—and it taught me an important lesson about my relationship with money. My primary care physician wanted me to see a hematologist. “Your white blood cells have been trending lower for the last five years,” he opined. “We need to find out what’s causing it.”
After a number of tests, the hematologist thought I might have a rare blood disease. He said the test results were inconclusive,
IN DECEMBER, I fell head first onto the bathroom floor. The doctors agreed I had a mild concussion. These typically heal in four-to-six weeks, but it’s now been five months. In March, I dislocated my left knee cap during an afternoon stroll. I was suddenly unable to put any weight on my left leg.
These two unrelated injuries have required me to see an array of medical professionals and undergo multiple tests, including two magnetic resonance imaging (MRI) scans,
OWNING a business comes with a unique opportunity: the chance to better the lives of your employees. The paycheck you provide helps them pay for their daily expenses and supports the local economy. But there’s an opportunity to do even more: By being thoughtful in how you structure employee benefits, you can ensure they have a more prosperous future, while also helping them lead happier lives today.
Remember, money is simply a tool to help you enjoy your life—and one way to do that is to buy time.
ONE SPRING DAY in 1995, McArthur Wheeler walked into two banks near his Pittsburgh home and robbed them at gunpoint.
His plan had one critical flaw: The disguise he chose didn’t hide his face at all. Instead of the usual stocking cap or hat and sunglasses, Wheeler made an unconventional choice. He applied a coating of lemon juice to his face. His reasoning: Lemon juice could be used to make invisible ink, so Wheeler figured it would have the same effect on his face,
THE GREAT Recession highlighted the frightening amount of debt—especially mortgage debt—that had been taken on by many American families.
A decade later, the picture is far brighter, with one exception: student loans. Since 2008’s third quarter, education debt has ballooned 144%, according to data just released by the Federal Reserve Bank of New York. But the total of all other debt—mortgages, car loans and credit card balances—is up less than 1% over the same period.
I HAD TO PAY my credit card bill, so I went online and set up a payment from my credit union a week before the bill was due. Why not, it’s an online transfer, right?
Not always.
The payment was due on the 16th. I went online the day before to check my bank account. It said the credit card payment was “sorted” and hadn’t transferred. Same thing the next day and the next.
OVER THE PAST five years, mortgage debt outstanding is up 11%, auto loans 45%, credit card debt 29% and student loans 34%, according to the Federal Reserve Bank of New York.
NO. 15: WE SHOULD retire our debts before we retire from our job. Paying off debt cuts our living expenses, plus that debt is likely costing us more than we’re earning on our bonds.
HAVE A FAMILY talk about college. How much financial help can you give your children? If they’ll need to shoulder part of the cost, tell them long before they start eyeing colleges. What career do your teenagers plan to pursue? If they’ll likely end up with a modest income, counsel them against colleges that will require hefty student loans.
NO. 84: IF YOUR portfolio earns 6% annually and you spend the entire 6% every year, you’ll face a financial reckoning. The spending power of the 6% will shrink with inflation, forcing you to either cut your standard of living—or dip into principal to maintain it. The latter is dangerous, especially early in retirement, because you can quickly eviscerate your nest egg.
INSTINCT VS. REFLECTION. Our brain’s instinctual side makes most decisions. That’s usually a plus: Our instincts tell us to jump out of the way, even before we’re fully aware of the speeding car. But our instincts can also lead us to overspend and panic when markets decline. Making money decisions? Hit the pause button, so your brain’s slower-moving, contemplative side can weigh in.