Smart Thinking On Investing – August 26
Smart Thinking On Investing – August 26
Consider the Risk You’re Taking if You Don’t Start Investing
- Given the stock market circumstances at the moment it’s understandable that people are worried it’s too risky to invest, but there’s no knowing what the future holds
- Volatility and uncertainty are part and parcel of investing, but you can prepare yourself for different outcomes if you think strategically and stay on target for your financial goals
- Stocks tend to outperform bonds and cash; build a portfolio that is appropriate for your risk tolerance and get investing
“You Can Work More, You Can Save More, Or You Can Want Less”
- This is not the same as saying you should aim lower; it’s not suggesting that your goals are unattainable
- It’s just “numbers-based reality”—a different approach to saving money
- Take a look at your goals and decide if they’re yours or society’s influence on you and give yourself permission to want less
Investing Lies That are Holding Us Back
- Don’t invest while paying off debt—delaying investing for any reason isn’t sensible, start small by putting something to your retirement asap
- That you need a lot of money to invest and paying more in fees equals better financial advice, are also costly investing lies
- And no, you don’t need to be an expert in the stock market to succeed at investing; learning just a little will get you a long way
- Even if you plan to work in retirement you should still invest for it; the future is too uncertain
Millennials: Such Cool Investors
- Watching their parents get burned in 2008 and uncertainty for how the stock market works have created young investors that are more conservative about risk-taking
- Be a cool investor too; don’t try to time the market, diversify your portfolio with by investing in different assets and think long-term
- Don’t hold too much cash as an asset and take advantage of your age; make time do all the work for you and benefit from the power of compounding interest
Millennials and the New Quarter-Life Crisis
- Out of 1,000 surveyed young people, 86% want job, relationship, and financial success before they get to age 30
- Though traditional life crises are usually about identity and maybe role loss, more and more millennials are already self-questioning and creating new goals for themselves
- As life expectancy is now longer it’s not healthy to just settle for the long-haul; a quarter-life crisis could mix up something different and better for the future
Do you want to start investing on your own, but don’t know how?
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