The stock market has been hot lately! From January 2010 through December 2020 the S&P 500 Index has gained over 322%! It's easy to be a stress-free investor in this type of market. BUT - when things get too hot they sometimes catch on fire. Is it time for an investing fire drill? Let's talk [...]
Why does a diversified portfolio commonly have a mix of different asset class exposure? Great question! Let's explore that question and also look at 8 key investing indexes, that track popular asset classes, to see how they've performed recently. But first... What Is An Asset Class? Investopedia defines an asset class as "a group of [...]
Financial and investment advisors can be very valuable resources in certain situations. Even so, there are great financial tips that you'll rarely hear them suggest. Here is the great money advice your financial advisor probably hasn't recommended. Financial Advisors & Investment Advisors These two terms frequently overlap because often both financial advisors and investment [...]
The American 401(k) is a very powerful retirement-planning option. Properly utilized, a 401(k) can help provide for a comfortable retirement. There are certain 401(k) mistakes that can derail your retirement dreams. Here's what they are, and how to avoid them. Love Your 401(k) What is a 401(k) plan? A 401k plan is an employer-sponsored retirement [...]
Stocks and bonds. You hear people talking about these two important topics all the time. Do you understand exactly what they mean though? Sure, investments, but what type of investments. Understanding what you are (or aren't) investing in it a key part of intelligent investing. We already provided an easy answer to "What are stocks", [...]
Investing doesn't have to be difficult - and it shouldn't be! Here are three super-simple portfolio options for do-it-yourself investors to consider. None of these portfolios use more than three funds. How is that for simple? Investing Is For Everyone Steadily investing money into the stock market is one of the best ways to grow [...]
Investing consistently is a key building block of wealth building, but many people don't understand why it is so powerful. Well, today we're going to explain it to you! And once you understand it, you'll be even more motivated to keep your investing consistent. First, make sure you have your emergency fund in place, and [...]
Understanding investment risk and your personal risk tolerance is key to successful investing. Today we'll visit both of those items to help you make intelligent investment decisions that are best for you. Investing Risk The risk factors of investing are very often misunderstood. Consider this situation to highlight how most people think of risk: Warren [...]
What was the average annual stock market returns over the past 5 years? How about for the past 20 years? What was the return for a 60/40 stock and bond mix portfolio? There are a lot of numbers thrown around on how stocks have done - and will do in the future. Let's dig through [...]
A study of 70,000 investor portfolios showed that in 2016 investor returns lagged the market by a whopping 7%! Yes, the average investor gained 5% but the S&P 500 returned 12% over the same period. Why? Well, here are 5 reasons your investments might be performing below average. It's part of the behavior gap Financial [...]