Here is a great graphic outlining the emotional cycle investors struggle with year after year. When I discuss these factors with prospective clients most react by saying, “I’m smarter than that!”, “This time is different.”, or “That won’t happen to me.” You must first recognize your mistakes before you can avoid them in the future.
Two Strategies to Erase Credit Card Debt
Credit card debt can feel like a monster pounding at the front door, threatening to destroy any hope of a secure financial future. Although paying off your credit card accounts may seem overwhelming and can be challenging, there are steps you can take to help you accomplish this goal.
What is your investment ‘Plan B’?
A client recently asked a great question, “What is our ‘Plan B”? I think part of the question stemmed from the idea that if we aren’t reacting to the market and its changes, we are doing something wrong. Adjusting our investments or calling an audible in the middle of the process makes investors feel good. Just like nearly every other decision, the change is driven by emotions yet investors fail to realize it. After the change, they normally come out feeling the portfolio is much ‘safer’ now, or they can make a whole bunch more money. (Fear & Greed) Rarely will an investor go back and evaluate previous decisions to decide whether or not it was advantageous in the end.
Everyone likes to hate the market
People truly hate the stock market. Don’t believe me? Take a quick glance at a yahoo finance comment chain. You’ll undoubtedly see that current investor sentiment is filled with distrust, skepticism, and outright hatred of the entire capital market system. The common belief seems to be the fat cats of Wall Street are out to make a quick buck with no regard to how their decisions will impact the little guy on Main Street.
Things to be Nervous About
by Jesse Anderson, CFA What are you nervous about? – European Crisis – Chinese Economic Slowdown – Our November Presidential Election – Massive Budget Deficits – 16 Trillion in National Debt – High Unemployment Do I need to continue? Can your investment plan handle all these risks? Have you made the appropriate changes to handle what seems like an endless …
When Will You Retire?
In America the retirement age has been traditionally considered to be 65. Economic uncertainty, insufficient savings, and other factors are causing workers to postpone retirement longer than ever. The financial blog Lemon examined the results of Gallup’s recent Economy and Personal Finance poll about when today’s workers intend to retire. The results of this poll can be seen in the infographic at the bottom of this post.
