It’s hardwired into our brains: the emotional tendency to leave an investment at the wrong time.
When investors sell before an investment reached its peak, or when an investment has dropped in value (essentially buying high and selling low), “abandoning” an investment strategy can be costly and leave your portfolio to take on water.
Think about the conversations you have with your current and prospective clients. They may nod, smile, and comment at the right times, but do they really understand everything you’re saying? We’re not talking about smarts. Your clients are bright and successful folks.
It’s up to the financial professional to set the stage early by gauging clients’ knowledge of investments and terminology. It can go a long way to help financial professionals communicate more effectively.
It’s a right of early-childhood passage. To most people, kids and allowances go together like fireworks and the Fourth of July. The most-cited reason is to teach children how to manage money. But is an allowance the best way to teach children to spend and save wisely?
Well, that depends.
Some see economic bubbles boiling up everywhere: the real estate bubble, the current tech bubble (the one in the late ‘90s went pop!), and even new bubble “currencies” like Bitcoin are raising concerns.
Is this Bubble Trouble? That’s hard to say.
Retirees’ most commonly identified retirement threat is reduced Medicare benefits. That’s ahead of reductions in Social Security, market volatility, and insufficient retirement savings.
Medicare pays for a big share of retirees’ health care expenses — nearly half, in fact. However, it doesn’t cover everything. Health care costs have a big impact on retirement planning, and Medicare involves making several choices and meeting important deadlines. Understanding some of the various provisions of Medicare is essential to making the most of this benefit.
If you’ve always dreamed of starting your own business – maybe it’s a 2014 New Year’s resolution – you’re certainly not alone.
Owning a business is a great way to take control of your career. It gives you the opportunity to set your own rules and do what you truly enjoy. Still, giving up a steady paycheck can be scary – but employer-provided health care may be easier to forgo since the Affordable Care Act became a reality. Like anything else, however, you can manage these fears with good solid planning.