It’s no surprise that more and more of my clients (and prospects) are coming to me as they approach retirement and are increasingly anxious about how to make the transition from accumulation of their retirement funds to distribution of those funds. Questions like “when should I claim social security, how much is safe to withdraw each year, what account should I take it from first, how will taxes affect my retirement, how should I safely invest during retirement, what should I budget for healthcare costs, what medicare plans are best for me?” are among the many questions on pre-retirees’ minds.…Read More
One time Fidelity Magellan Fund manager and investing legend Peter Lynch once said “The real key to making money in stocks is not to get scared out of them.”
Benjamin Graham said “What investors need, but few have, is a “firmness of character.”” What he was referring to is the ability for investors to keep their emotions in check.
Investing success is more influenced by DQ than IQ. Our Discipline Quotient, or the ability to remain disciplined during emotional times, is what sets investors apart. Exercising investment discipline is a difficult, but not impossible endeavor.
Buy Low, Sell High
Every …Read More
It’s been a long time, more than a year, since I’ve posted an article about what’s going on in the markets. Market volatility, until last week, has been mostly subdued. For what seems like years now, markets seemed immune from any meaningful drop. But this still young month of February has seen volatility return with a vengeance.
This means that the U.S. stock market will finally get something that happens, on average, about once a year: a 10+% percent drop—the definition of a market correction. The last time this happened, known as a bear market, was a whopper: the Great …Read More
“Good sense, innocence, cripplin’ mankind
Dead kings, many things I can’t define
Occasions, persuasions clutter your mind
Incense and peppermints, the color of time
Who cares what games we choose?
Little to win, but nothin’ to lose”
— Song Lyrics from the 1967 hit single “Incense & Peppermints” written by Tim Gilbert & John S. Carter and performed by the group known as The Strawberry Alarm Clock
Suppose somebody came up to you and shouted: “I have terrible news about the economy. I think you should sell your stocks!”
Alarmed, you say: “Oh, my God. Tell me more!”
And this …
I’ve never seen anything like it. The mere mention of Amazon eyeing another kind of business can send chills down traders’ backs who might own stocks in that line of business. It seems no one wants to be caught owning the next business Amazon might want to conquer.
As a result, on Tuesday morning, Wall Street traders woke up to something they haven’t experienced much of lately: actual market volatility. One trader posted an image of his Bloomberg terminal at the market opening, which showed an immediate scary-looking plunge in U.S. equities as the opening bell rung. By the end …Read More