I have listed the 5 barriers to investing in the stock market below and the barriers are fees, fear of losing money, high cost of stock ownership, lack of knowledge, and lack of motivation. Fees Brokerage Fees Expense ratios Fear of losing money/Unhealthy fear of the market Large 3-6 months emergency fund The larger theContinue reading “5 Barriers to Investing”
I recently wrote about having a reasonable investing plan and how important it is to have one, but It’s even more important to have an investment plan during times of market volatility than in bull markets. If not you may be investing speculatively and be unaware of it. Benjamin Graham once said The greatest dangerContinue reading “How to Avoid Speculative Investing”
College will likely cost between $60K and 100K a year in the next 20 years. This is based on a 3% yearly increase from the current cost of $25K for public universities and $40K for private universities. The cost would increase to $240k and $400K respectively for a public and private college education. The thoughtContinue reading “How to Pay For College”
One of the great Jack Bogle’s most memorable quote is “Buy and hold, but don’t forget the hold”. What is the meaning behind this quote. Lets say you have a stock or ETF that you have bought thereby satisfying the buy part of the equation. You’re now contemplating buying more shares to add to yourContinue reading “How to be a Patient Investor”
Investing in stocks is like farming. There is a time to reap and then there’s a time to sow. It’s a great hobby to partake in if you have patience. That’s why the stock market is not the best place to keep your emergency funds. It’s the same reason why your personal home should notContinue reading “How to develop an income stream”
The reason I hate investing in individual stocks is because at the end of the day there will be winners and there will be losers. All of your individual stock holdings will not win. To win at investing in individual stocks your winners have to outperform your losers. Your winners have to win bigger thanContinue reading “How to choose between passive vs. Active investing”
1. Stocks will likely continue to fall for the next 1 month, 3 months, 6 months or 12 months 2. Stocks will likely hit all time highs again in the next 1 year, 3 years, 5 years or 10 years. 3. If you’re a long term investor and don’t need to touch your cash forContinue reading “Perspective”
It’s not about what price you bought VTI/VTSAX or other similar low cost index fund at. Its about how many shares you have.
I just heard another sad story about someone who lost a lot of their nest egg during the Great Recession and can’t retire until they are 70 years old. This individual is now 60 and trying to figure out how to slow down and still maintain a sufficient salary to meet their goals. This situationContinue reading “Reasonable Investment Plan”
We have six figure mortgages, car loans, student loans and sometimes credit card debt.