I used to worry about losing money in the stock market. I didn’t believe I was smart enough to manage it myself. Turns out, you don’t need to be a stock analyst to invest. You only need to understand a few simple principles and you’ll do better than most.
Figuring out the perfect investment strategy can be tough, especially if you go it alone. You have to worry about asset allocation, which assets to focus on, and countless other details. It’s a lot to handle. Luckily, there are some ready-made portfolios out there.
Investing is not as complicated as Wall Street would have you believe. Anyone reading this can become a successful investor. Part of successful investing is creating a portfolio that’s right for you, your age, your time horizon, and your financial goals. This is where investing gets complicated. Creating a portfolio from scratch takes a lot of research, time, and effort. But you don’t have to create one out of thin air. You can use the coffeehouse portfolio.
If your idea of a diverse portfolio is having both Apple and Microsoft, you need to better understand the concept of asset classes. Even if you own these high-performers, you’ve only invested in a single type – Mega-cap stocks. To diversify your investment portfolio, you’re either going to hire someone to do it for you or DIY. The latter approach requires an understanding of asset classes.
When I started investing, I thought the best way to get rich was to pick hot individual stocks and buy low and sell high as often as possible. Compounding interest and tax-efficient investing was for suckers and old ladies. There were three problems with this way of thinking.
Did you know that Harvard has a 37 billion dollar endowment? That is a crazy amount of money. And to be clear, that’s billion with a capital ‘B.’ Let’s examine what the pros do, the Ivy Portfolio, and you can replicate it.
Compound interest is a double-edged sword. When it’s working for you, it’s your best friend. When it’s working against you, it’s your worst enemy. We’ll explain what compound interest is.
If you read or listen to anything related to personal finance, you have heard of Vanguard Funds. But WTF are Vanguard Funds and why are they so popular?
How does a currency just materialize from thin air? What is a Bitcoin? Want to know how to invest in Bitcoin? We’ll break down the mystery for you.
The time value of money and risk and return are two core concepts in personal finance. Luckily, each boils down to a pretty simple statement. The time value of money means your dollar today is worth more than your dollar tomorrow.
You need to invest your money. It simply doesn’t make sense not to. Even if you only invest 5% of your money, it would still be worth it. This is your investing for beginners 101 cheat sheet. We explain the basics of simple investing and aim to inspire the proper mindset you need to succeed.
Net worth is a useful tool to gauge your overall financial picture. We have good data in America for average net worth by age. See how you stack up and because LMM listeners are not average, what your net worth by age should be.
Asset allocation is simple. Buy 2,000 shares of Tesla, 5,000 shares of Amazon, and put the rest in the hot stock tip you got last week. Now, sit back, relax, and watch your portfolio grow forever. That’s obviously incorrect, but wouldn’t it be nice if it were that simple? But, contrary to popular opinion, asset allocation isn’t that complicated.
Retirement used to mean a gold watch and pension. Times change. Today, retirement for most people is driven by an investment portfolio. But building your nest egg is only one part of the equation. It comes down to one question when you’re ready to retire: how do you manage it?
Even those who consider all things personal finance, particularly all things investing, to be a hobby and speak all the related lingo fluently, may not be familiar with the name Harry Markowitz or the term efficient frontier. However, they may be familiar with the term Modern Portfolio Theory.
Balance is important in all aspects of life, including your financial portfolio. Find out what well balanced means when it comes to your portfolio.
Investing a lump sum can be stressful, but it doesn’t have to be. To make it easier, we’ve narrowed down the possibilities to make this […]
No one can predict when a recession will happen but October was warning of things to come. A recession fire drill if you will. When we understand what a recession is, we can take steps to protect ourselves from the fallout.
Have some money or a family? Then you need estate planning. I’ll give you a primer to familiarize you with what it involves.