My wife and I play in a fantasy football league comprised of a handful of other couples in and around our neighborhood. This season something interesting happened. As the start of our season drew near, one of the couples in the league had to back out. With literally a couple of weeks left before the start of the season we were in a pinch as nine couples had to decide on one other couple to join the league. Dicey, at best.
Is A Market Downturn Coming?
Recently Jill & I attended a friend's birthday party. It was a Casino Night theme and of course fun was had by all. After all, we weren't playing with real money!
They had two table games that evening: blackjack and roulette. Seeing the roulette wheel reminded me of a visit I took to Atlantic City many years ago.
GAMBLER’S FALLACY
A friend and I were sitting in a lounge…
What's All This Free Trade Talk?
Yesterday two very large financial institutions announced they would no longer charge "commissions" on any online exchange-listed stock, ETF (domestic and Canadian), and options trades for any investor on their platforms.
The cost associated with investing has been plummeting for years. First it was the robo-advisor firms pushing down costs for asset management. And lately, another financial…
Wits & Wagers
Last week we were on vacation at my in laws house. Close family friends joined us for the trip and a couple of nights were spent around the table competing in the board game called Wits & Wagers. We paired up into teams of two with each team consisting of an adult and a kid. If you know anything about our family, we trend toward the "more competitive" side of the ledger. It was an intense couple of nights. Well, about as intense as a game of Wits & Wagers can get!
The Great Chase
Last week I showed you the financial planning formula. Here it is again
wealth = $$$ x years x % (aka rate of return)
Pop quiz: of the four factors in our formula, how many of them are variable?
If you answered all of them, go ahead and give yourself a round of applause. One of the issues with our formula is…
Stay The Course
Jack Bogle passed away earlier this year. If you don't know who he is, no worries. You can read about him here. Basically, he was, is, and forever will be a legend in the investing world. He founded the mutual fund company, Vanguard. He also pioneered the index fund and impacted countless individual investors.
When it came to investing, Mr. Bogle had a famous quote: "stay the course." It was even the title of his book.
Simple, not easy.
But what if we don't have a course to begin with? How can we "stay the course" then?
Better Than Average
In one of my peer groups, a fun poll was posed to us and essentially it asked if our profession (financial advisors) would be more fun if we could reliably beat the market. I got a good chuckle out of it, because, obviously, who doesn't want to beat the market?!? You do. I do. And yes, it would certainly make client conversations a little easier. Maybe a lot. Lol.
But this question also got me thinking. Why are we so wrapped up with trying to beat the market?
How Much Risk Should I Take?
Ahhhhhh, risk and reward. Always the teeter totter of investment conversations. When it comes to investing, we all want to have our cake and eat it too. Meaning we want the maximum return - all the upside in the market. And we want nothing to do with the risk - when the markets go down. Who wouldn't want that?!
Unfortunately that's not how the markets work. In order for our money to grow…
Kaizen
Our youngest son, Sutton, is playing baseball again this season. The team is comprised mostly of 7 year olds. So far, we've had a few practices and two games. And let me tell you…they stink.
Seriously. They're not good. After our last game Jill said to me, "It's like watching The Bad News Bears."
And she's not wrong.
Before you start thinking "Wow that's horrible,” or “How can they say/think such things," hear me out.
Pop Quiz!
Remember way back when you were in school? Maybe middle school or high school? You'd walk into one of your classes and the teacher would announce "POP QUIZ TIME!"
I always imagine these words were uttered in sheer delight. Or in a sadistic manner. Or sometimes with an evil villain laugh following the phrase. Like, "POP QUIZ TIME!! Mwah-hah-hah-haaaaaaaa!!!"
And then, bum-bum-BUMMMM. A collective groan from the class.
Shadow, or no?
On February 2, 2019 good ol' Punxatawny Phil did not see his shadow. And for those of you keeping score at home, it's only the 10th time in 123 recorded instance he did not see his shadow. So will we have an early spring, as legend suggests we will? According to this USA Today story, Punxatawny Phil doesn't have a very stellar track record.
Yet for those of us that don't care for…
Gearing Up For The Next Market Crash
I recently received an email from a colleague. In his email he asked if I was ready for the impending market crash (his words, not mine). Perhaps not ironically, he sent this email just before history was made on August 22, 2018. This date marked when the bull market that started roaring after the Global Financial Crisis became the longest running in US history.
In addition to my colleague's inquiry, I've been asked many times this year (and years prior), about the "impending market crash." My answer was and remains the same. Here it is:
Luck vs. Skill
"I'd rather be lucky than good."
I understand the meaning behind the statement. I just don't get why we'd rather be lucky than good, especially when it comes to investing.
Yes, luck plays a part in most of our lives. I am lucky to have met my wife. Okay, very lucky. I am lucky to be blessed with five kids. Also very lucky. On the other hand, being lucky doesn't automatically make me a good husband, nor does being lucky make me a good father, either. These are skills we have to work at.
On the golf course, I'm pretty good. I have some skill - I happen to be…