Smart Thinking On Investing – July 16
Smart Thinking On Investing – July 16
Make Smart Investments
- Working past retirement age to fund your living costs isn’t a circumstance anyone relishes; focus on long-term gains to maximize investment returns for your old age
- When you take more risk, the potential for profits increases, but proceed with some caution
- Don’t go all in on stocks—save money as well and seek out other investment opportunities to spread the risk
Shy About the Stock Market?
- Some say Millennials are making excuses not to invest, but survey data suggests otherwise; far likely that only 33% are invested in equities because the others see the risk as too great
- Yet, stocks and stock funds are the best option in the long-run to grow a decent retirement nest egg—taking advantage as early as possible of compound interest working for your portfolio
- As well as potentially doubling your investment every 12 years; the odds of losing money in stocks rise from 1 in 4 over one year, to 1 in 25 if investing over ten years, down to zero after 20 years
Millennials; “Today’s Greatest Generation”
- Though depicted as lazy, entitled whiners, we need to remember Millennials were students in the midst of the Great Recession and graduated with crippling student loans into a lackluster job market
- They seem to have accepted the financial issues they face, are knuckling down and postponing major life decisions—buying a house—and instead, saving money
- They’re getting involved in their 401Ks and putting money aside for emergencies despite being in low-wage jobs—rather than contempt, maybe they deserve props instead
The Right Financial Advisor For You
- We’re all looking for someone trustworthy, but more important is to check if they are qualified and in a good position with industry regulators
- Understand the difference between a broker/investment advisor and a financial planner
- The first are certified and tend to sell products in the client’s best interest, while financial planners may not necessarily have training and aren’t subject to registration requirements
- Make sure they’re listed on the right industry databases and run a background check on their firm and qualifications to make an informed decision
Budget, Save, and Invest
- …but also know that there are times to break your budget occasionally and spend money
- I advocate thinking ahead a lot; about your retirement and finances but sometimes you shouldn’t have to feel conflicted about spending money, and “to be there” for family is always a good reason
- Be smart, invest wisely for your financial future and save as well for a rainy day, that way if the need—or the want—arises, it won’t hurt so much to lay out cash to be there at the right time
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.