How To Survive A Stock Market Correction

market-correction

“We’re overdue for a stock market collapse.” “This could be the big one.” This is what you hear when you turn on the news or read magazines and newspapers. After the great bull market run from 2009 to today, many are predicting the stock market is going to drop. Depending on who you listen to, this drop could be as little as 5% to as much as 30%. With so many “experts” telling you the market is going to drop, how does an investor invest their money now and still be successful? Should you be afraid of a stock market pullback? What Is A Stock Market Correction By definition, a stock market correction is when the stock market drops by 10%. This usually doesn’t happen in one day’s time, but rather over time, say a few weeks. While 10% might sound like a lot, this type of a decline is … Continue reading

The TV Ad That Illustrates Why You Suck At Investing

upward graph

I was watching TV the other night, when a commercial came on that had me shaking my head in disbelief. Watch the ad below and see if you can see why I find it so incredible that this is currently airing all over TV… No, it’s not that these nice “near-retirement” couples are using John Hancock to manage their money. I’m sure they’re as good as any other financial advisor. What really got to me is the sentiment of the commercial. That these couples are just now coming out of their shells and thinking about getting back in the markets? And John Hancock is claiming “You’re not alone”?! I hate to break it to everyone involved, but you seem to be a little slow on the uptake! If you got out of stocks during the great recession and are just getting back into the market now, you’ve missed out on … Continue reading

Stop Your 401(k) From Robbing You Blind

high 401k fees

You know how much you pay for your mortgage payment, your cell phone bill, and your car payment. But do you know how much you’re paying for your 401k plan? You probably don’t, and that could be costing you tens of thousands of dollars. Because we don’t actually have to write a check to pay for the fees associated with our 401k we never think about what it’s costing us. A few dollars here and there doesn’t seem like much, but over time, and as your nest egg grows, these fees start to add up fast. In some cases they actually take years off of your retirement! I know people (myself included) who have changed banks over a monthly fee being charged to their checking accounts. I know people who will drive an extra 2 miles just to save $0.03 on a gallon of gas. I know people who will spend … Continue reading

Warren Buffett’s 6 Fundamentals Of Investing

Warren Buffett Investing Advice

There’s a funny thing my dog does around the same time every night, when I grab her bowl to feed her dinner. She runs over to the spot where I’ll eventually set it down, and she’ll sit, tail wagging, watching my every move until I bring the bowl over with her food – which gets eagerly and immediately devoured. I tell this story not because I think you’d be interested in my dog’s eating habits, but because this is exactly how the whole of the investing community acts around this time each year as we await the release of Warren Buffett’s annual letter to Berkshire Hathaway shareholders.  The letter is more than your typical shareholders letter, it’s usually pretty entertaining and is always chock full of interesting insights and investing advice from Warren Buffett. Thankfully, this year is no different. Not only did Buffett outline his fundamentals for investing, he … Continue reading

Finding Your Financial Tipping Point

financial tipping point

I’ve recently been reading Malcolm Gladwell’s book, The Tipping Point. It’s a fascinating read that in a nutshell, explains how messages, trends and behaviors “go viral”. How small acts and events build upon each other until they reach a critical mass (the tipping point) where they simply take off and become something much larger than the sum of its parts. In the book he uses examples such as Paul Revere’s ride,  the spread of a fashion trend and how a single person can start a “word of mouth” movement for a restaurant they’re a fan of. As I was reading the book I couldn’t help but think of how the concept of the tipping point relates to our investing habits. We’re all aware it exists, and have probably read hundreds of articles mentioning the power of compound interest which is another example of the tipping point theory in action. The Tipping … Continue reading

The One Asset You Need To Maximize

maximize-time

Most of us are still young, working away long hours at jobs we don’t love, and are told to focus on stocking away as much money as we can for our future. But how often do we really stop to think about what that future holds, and when that future actually takes place? Most of you reading this have a good handle on your personal balance sheet. Your assets: (house, investment accounts, savings accounts), and your liabilities: (mortgage, car loans, credit card bills, utilities). We work and sometimes obsessively focus on these parts of our life, but many of us don’t pay enough attention to the most important asset we have, Time. Investing should be about more than trying to maximize ROI or to push our net worth to new heights. Investing should be about being able to take control of time. Money can’t buy happiness in the form of physical … Continue reading