In spite of my admonitions and those of most other finance experts, many people still insist on actively trading stocks in an attempt to beat the market. If you are one of these people, then I recommend you at least consider using the following principles in your active trading strategy so you have a higher […]
This is my second post on New Year’s resolutions, with this one focused on how to improve your finances. Many people choose to have spending and saving goals for the new year. This is wise, because if you don’t maintain some sort of financial plan or target, your random daily spending decisions during the course […]
I realize that most people like budgeting about as much as they enjoy going to the dentist, so I’m not going to tell you that you need to create a detailed household budget. It would be useful, but most people just aren’t going to do it. However, there is one simple money management exercise that […]
In previous posts I have advocated investing in a home as a way to build wealth. Renting for long periods is generally a bad idea because you are not taking advantage of a U.S. tax code that incentivizes home ownership, and you are not building wealth in the form of home equity. Now I want […]
This might be one of the most difficult financial decisions parents have to make. Every household has limited finances, and the cost of a college education has skyrocketed in the last couple of decades. Also, many professions now require a master’s degree (post-college graduate education), so it is not unlikely that you […]
Everyone who invests has the same question: how can I beat the market? There actually is a way, but it has nothing to do with actively trading stocks, which as I have already said is a fool’s game. You’ve probably never heard of this particular method of beating the market. This might make you suspicious […]
I received a lot of positive feedback on my recent post, “6 Key Pieces of Financial Advice for Your Young Adult Child,” so this article expands on that topic. One of my readers said it would be helpful if I would discuss what her adult daughter should focus on, financially, as she progresses through her […]
One of my readers asked me what financial advice I would give to a young adult. She was concerned that her recently college-graduated daughter might begin making money mistakes, such as overspending on credit cards, which would jeopardize her finances. She said if I did a post on this topic she would pass it along […]
One major reason why people fear investing is that financial institutions have created so many different types of investment products that it is nearly impossible to choose among them. This is somewhat just the nature of a market economy, whereby every possible “flavor” of a product is offered for sale by companies to consumers. Unfortunately, […]
Some of the people I assist with financial planning have been astute enough to ask the following question: “So you recommend Vanguard as an excellent mutual fund company to use for my investments. Well, what happens if Vanguard goes bankrupt? Shouldn’t I spread my money around to more than one mutual fund company? You’ve told […]
How Type A’s Sabotage Their Investment Success
I love my Type A family and friends, I really do. They are so energetic and have such “can do” attitudes! Type As tend to be optimistic and proactive, and I prefer to be around people like that. I think you become more like the people you associate with. A “can do” and proactive approach […]
The Smartest Way to Invest is Also the Simplest
Most people are overwhelmed with the staggering number of complex and confusing investments that are advertised by investment companies: Buy options and derivatives, they are the key to your financial success! Foreign currency trading—build untold wealth! Whole life insurance will produce returns that amaze your family and friends! Gold will ensure you a golden retirement! […]
More Examples of Faulty Thinking That Other People Experience
In this post I continue my discussion of cognitive distortions, which are habitual negative and irrational thoughts that cause us to feel bad about ourselves. You might want to be aware of these so that you can identify when other people (less well adjusted than you), such as family and friends, fall into these cognitive […]
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