Second Article Posted

My second article related to personal finance aimed at Firefighters and EMS personnel is posted at thebright.com. It is humorously titled If You Don’t Control The Problem, The Problem Will Control You and is about taking on too much debt. I hope you can check it out. I included a neat picture...

Someone’s Going To Beat The Market But What If It’s Not You?

Chuck Jaffe had a short article about Sheldon Jacobs’ appearance at the AAII Conference. The key takeaway from him; “But you can be average to above average just ding the very basics and not doing anything more,” Jacobs said. “And you have to remember that you are not graded the way the professionals are — or tracked the way I was with the newsletter — where it’s so important to be above-average or to be the best. … If you are an average investor and you or your funds are in the 52nd percentile instead of being above average or at the top of the charts, that’s okay if you are on the pace to reach your goals. It’s not a competition.” I’ve been saying for years that savings rate, consumption habits and not repeating catastrophic mistakes will be larger determinants of whether your financial plan works out the way you want it to. The picture is from Lowell which is a ghost town next to the Lavender Pit Mine in Bisbee,...

Someone’s Going To Beat The Market But What If It’s Not You?

Chuck Jaffe had a short article about Sheldon Jacobs’ appearance at the AAII Conference. The key takeaway from him; “But you can be average to above average just ding the very basics and not doing anything more,” Jacobs said. “And you have to remember that you are not graded the way the professionals are — or tracked the way I was with the newsletter — where it’s so important to be above-average or to be the best. … If you are an average investor and you or your funds are in the 52nd percentile instead of being above average or at the top of the charts, that’s okay if you are on the pace to reach your goals. It’s not a competition.” I’ve been saying for years that savings rate, consumption habits and not repeating catastrophic mistakes will be larger determinants of whether your financial plan works out the way you want it to. The picture is from Lowell which is a ghost town next to the Lavender Pit Mine in Bisbee,...

Habits Of The Mentally Strong

There was an article going around Facebook titled 13 Things Mentally Strong People Don’t Do. Hopefully you recognize a lot of your own behaviors from the list but there were a couple that relate to investing. 4. They Don’t Waste Energy on Things They Can’t Control This is a very important investment concept because we have no control over what the market does. That also means we have very little control performance in the short run. We have a little more control over performance in the long run which I will get to in a moment. Once you can accept that we have no control over what the market does, and that is not easy to do, then you can begin to devote energy to the things you have a better chance of controlling like your savings rate, your spending habits and you investment discipline. Having a little more control over long term investment results can come from training yourself to not succumb to the many behavioral dilemmas that do in so many people like selling in a panic, chasing the strategy that has been working the best lately, loading up on some hot segment of the market, not having an adequate understanding of risk or any of the other ones we looked at before. 13. They Don’t Expect Immediate Results If you are 85, healthy and out of money you are going to have some serious obstacles. Investing is a long term proposition so that if you are 85 and healthy you have enough left to reasonably fund your lifestyle. When you are 85  you won’t remember your...

Habits Of The Mentally Strong

There was an article going around Facebook titled 13 Things Mentally Strong People Don’t Do. Hopefully you recognize a lot of your own behaviors from the list but there were a couple that relate to investing. 4. They Don’t Waste Energy on Things They Can’t Control This is a very important investment concept because we have no control over what the market does. That also means we have very little control performance in the short run. We have a little more control over performance in the long run which I will get to in a moment. Once you can accept that we have no control over what the market does, and that is not easy to do, then you can begin to devote energy to the things you have a better chance of controlling like your savings rate, your spending habits and you investment discipline. Having a little more control over long term investment results can come from training yourself to not succumb to the many behavioral dilemmas that do in so many people like selling in a panic, chasing the strategy that has been working the best lately, loading up on some hot segment of the market, not having an adequate understanding of risk or any of the other ones we looked at before. 13. They Don’t Expect Immediate Results If you are 85, healthy and out of money you are going to have some serious obstacles. Investing is a long term proposition so that if you are 85 and healthy you have enough left to reasonably fund your lifestyle. When you are 85  you won’t remember your...