All in Thinking About Money
One of the hardest things about being a young investor is that we haven't experienced what it's like to endure a market crash - we can be naive about the big investing mistakes humans are prone to. Here's a simple exercise to help gauge your risk tolerance and what it's like to feel emotions of a portfolio drawdown.
Being a financial planner, the most frequent question I get in small talk is, "So what should I invest in?" But that's not the most important thing in investing. What is, then?
Many sources will tell you to give yourself a big pat on the back if you're saving 10% of your money. I'd like to suggest why I don't think saving 10% is enough in the context of three main financial goals most of us have.
In my work as a financial planner, I've observed several types of financial inaction in people's lives. However, they nearly all fall into one of two camps, which I call the two deadly "P's".
I give out a lot of advice as a financial planner. But if there is one thing I hope you do, it's to sit down for 20-30 minutes to actually write down your answers to these three questions.
In one survey, 63% of people responded that they'd rather disclose their weight than reveal how much money is in their checking account. Have you thought about the problems caused by any money avoidance on your part?