Ah, we restless humans. Sometimes, it pays to strive for greener grass. But as an investor, second-guessing a stable strategy can leave you in the weeds. Trading in reaction to excitement or fear tricks you into buying high (chasing popular trends) and selling low (fleeing misfortunes), while potentially incurring unnecessary taxes and transaction costs.
I enjoyed talking about Financial Planning for Parents at the Goodnow Library. Thank you to the Goodnow Library Foundation for hosting the Be Bold Speaker Series. Please find a link to the slides from the November 14 presentation at the Goodnow Library in the blog post.
What happens when you start to feel afraid or greedy? Do you feel like taking your time and waiting to make your next move?
In a bit of a paradox, we have two books with contradictory titles about crowds on our recommended reading list. So, what is it? Are crowds wise or delusional? It helps to understand why the answer is yes, to both, and why both have shaped our investment recommendations through the years.
Most children learn the ins and outs of responsible wealth-building from their parents. As kids grow, simple conversations about saving and spending often branch out into investing, compounding, and comprehensive Life-Centered Planning. But no matter how many good financial habits your children have learned by adulthood, they could still be unprepared for their role in your legacy plan.
According to a recent report by T. Rowe Price, the COVID-19 pandemic created 2.4 million "excess" retirements in 2020. Some folks retired due to family health issues. Others retired from high-stress positions in health care or education. And many were forced into retirement due to cutbacks by their employers. If you think unretirement could improve your Return on Life, work through these three questions and share your answers with loved ones and your financial advisor.
How often do you set new financial goals? How often do you achieve them? Most of us aren’t very successful with our goals, even when we have the best intentions and strong willpower.1 Sometimes, that’s because we’re setting unattainable goals. Other times, we’re missing the big picture and setting our goals with blinders on.
Why do we prefer a total return investment strategy instead of seeking more concentrated dividend stock positions, even for retirees who are drawing income out of their portfolios?
There’s a popular perception that dividend stocks can deliver decent returns, while also creating a dependable income stream for spending in retirement or elsewhere. But that's not necessarily the case.
You've likely heard of the 80/20 rule. The rule suggests 80% of an outcome is often the result of just 20% of the effort you put into it.
Behavioral finance is a field that merges the acumen of psychology with investments. The field is grounded on the belief that investors are prone to behavioral biases that cause financial decisions to be less than completely rational. In our work and studies here at Monument Group, we come across examples of behavioral biases on a regular basis.
As we move past the 4th of July and head into the second half of the year, ask yourself how these three areas of financial independence are affecting your planning and how to get more Return on Life going forward.