Thanks for stopping by the only investing website on the 'net designed by working folks for working folks. As more and more companies dump their old guaranteed pension plans and move their employees into 401(k) retirement plans, it's more important now than ever to learn how to manage your own investments. Come on in and get started!
We'll show you how to get a better understanding of the markets and become a confident, competent investor. And we lay it all out for you in plain English (well, a Southern variety of English, anyway). Hey, you work hard for your money - learn how to make your money work hard for you!
This evening, investment pundits and gurus will crowd into your TV to explain why the stock market moved the way it did today. You’ve heard them:
“Stocks were up today because of a better-than-expected jobs report...”
“The stock market closed lower today on fears of another rate hike…”
“Tensions in the Middle East pushed stocks down today…”
Yeah, you’ve heard them.
They dress nicely. They speak eloquently. They state their opinions convincingly. And they’ll be back on again tomorrow night to explain why the market moved like it did that day. They’ll run through a whole new set of thoughts and opinions – again convincingly – as if yesterday’s no longer matter.
Guess what? We don’t care.
> If stocks go up today, there’s only one reason: there were more buyers than sellers.
> If stocks go down tomorrow, it means there were more sellers than buyers.
No doubt these buyers and sellers have their reasons why they are buying and selling, but we don’t give a hoot what those reasons are. We don’t care why the markets move, we just care that the markets move. Because when one side or the other ‘wins’ for an extended period of time, trends are born…or kept alive.
As long term investors, long term trends are what we pay attention to, not one-day market moves that mean nothing. In fact, we’d go as far to say that we don’t even care why a market is trending, we just care that it is trending. That’s because we align our portfolio with the current major market trend to take advantage of bull markets and avoid bear markets.
Look, we’re not saying that everyone should wear blinders when it comes to investing. Gaining market knowledge is – and should be – an ongoing process. We need to understand how markets work, how to set up a 401(k), how to adjust asset allocations, etc. We gather that knowledge by reading books, attending seminars or classes, watching instructional videos and, yes, even listening to the talking heads on TV…sometimes!
Learning to become a confident, competent investor takes time. And time is something that most of us hard-working, family-raising folks don’t have a lot of, if any. So we really need to concentrate on what matters, not on what doesn’t.
In the grand scheme of things, why the S&P 500 moves does not matter. That it moves, and in what direction, is all that matters.
NEWS YOU CAN USE
"Legg Mason Launches Two New ETFs"
from Baltimore Business Journal
"Commodities ETFs Are Battling it Out
in the Quietest Fee War Ever"
"Vanguard Cuts Fees for World's
Biggest Bond, Stock Funds"
"This Robo-Advisor Want to Lend You Money,
Not Just Manage It"
"Is There any Saving the
VIEWS YOU CAN USE
"Morningstar's Guide to Budgeting"
"Three Serious Problems with the 4% Retirement Rule" from The Motley Fool
"It's Harder Than You Think to Spend Down
Your 401k Account in Retirement"
"6 Tips for Investors to Overcome Behavioral Bias"
from US News & World Report
"A Better Way to Invest in Index Funds"
Spring Reading List
'Tis the season for new beginnings! Plant some seeds of knowledge with any of these fine investing books, then reap what you sow!!
Get smart about your money!!!
>>>>> And just so you know:
Clicking on these book images takes you to Amazon.com via our affiliate link. You won't pay a penny more for what you buy, but we do get a few coins for sending you there - and that helps us cover the costs of keeping our website running free!
Here are a couple of very simple retirement calculators courtesy of our friends over at Calculator Pro.
Here are the figures we used:
> Required Annual Income: we put in what we're making now (we don't buy into that "plan to spend 70% of your working income in retirement" idea!)
> Years until Retirement: we shot for age 65, but who really knows, right?
> Years after Retirement: we sure hope to have 20 good years of doing what we want to do!
> Annual Inflation: we used 3.5% (maybe go a tad higher to be safe?)
> Annual Return on Balance: we used 7% (maybe go a tad lower to be safe?)