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Rebalancing. For the most part we let our winners run.
“Social security benefits will always be there.”
I told my finance students that social security would always be there for people who fail to plan for the future. But successful investors and planners will increasingly see social security means tested out of existence.
Any economic predictions to two figures or more are bumpf as far as I’m concerned. I see a lot of headlines similar to this “Expert X predicts the market will be up 18.26% this year! Really? Why not 18.27%??? All nonsense.
“Buy indices no matter what’s in them or how they are priced”.
We keep far too much of our investable money in cash, due to my husband’s distrust of the stock market. Combination of minuscule interest rates, missing out on the recent bull market, and now inflation rearing its ugly head really brings home why all these years we should not have ignored the popular financial advice to mostly invest our too-large rainy day fund.
Judging by the number of articles, the most popular financial advice consists of predicting the markets. Took me a long time to wise up, but now I know there are two kinds of market analysts:
I have no saving goal.
I just spend small then save and invest the rest. Most people should have goals and habits because it’s so hard to keep them without some structure. For me, I get a thrill out of saving, so it’s kind of like my ‘fun money’. Which does not sound so fun, I’m sure.
Saving 10% of my salary is never something I have thought about. I can’t even tell you what my saving rate is.
Right now I am ignoring the popular financial advice that borrowing for college is worth it because college provides a double-digit return on your investment.
This is just one more instance of popular financial advice on when to borrow money and how much debt load is okay, including car loans and home loans.
Old fashioned idea, but at this point in my life, if I can’t pay in full, I won’t buy it. Amazing how my interest in purchasing things fades away when I think of real money going out of my pocket to get it.
Honestly, I had a friend from college laugh and say, “Haven’t you heard of leverage?” as he described his hobby farm, which I wondered how he could afford. He may have been correct, and he may be multiples richer than me at this point, but that is not how I roll.
At this time I steer clear of the flavors of the month – NFTs and crypto. The other one is to buy gold as a hedge against Armageddon. I never understood that one.
I hate the click bait headlines like, “Six stocks you need to buy now!” Why would I think some journalist trying to get readers with a seductive headline would know how to beat the market? I don’t.
Many personal finance writers love to tell you to get the biggest mortgage you can afford and never pay it off. Yes, it is the cheapest debt you can buy but I still say phooey. Ignore that advice when you’re able.
I ignore all the pitches to invest in the latest, greatest, hottest “thing”. Even if it were a good investment, if “everybody” is already buying it, it’s too late!
Yes, but perhaps a corollary is that if everybody is saying it’s too late it probably isn’t.
I’m long past advice doing me much good, but I did follow the save early, save regularly and stop trying to beat the averages. Today popular advice seems to be around retirement withdrawal rates and how much one needs in funds to retire. With the wide range of advice given in both, I’m guessing ignoring the experts and using some basic math on each individual situation is best.