Common Investor Mistakes – Part 3: Put Your Money to Work!
In Part 1 of this series, we discussed Emotional Trading and the behavior and cognitive biases displayed when making this mistake. In Part 2, we expanded on that discussion, going through Risk Tolerance, which is the foundation of portfolio construction and can help you avoid making emotional trading decisions. In Part 3 of this series, […]
Value vs Growth: What is the Difference?
Value vs Growth is a common theme in the investing world. Commonly investors will bucket a stock into either growth or value. The problem with this practice is that value and growth are not mutually exclusive. Growth and valuation are two separate considerations in evaluating a company or a stock. If a company exhibits high […]
Maximizing the Savings Power of your 401(k)
If you contribute to a 401(k), it is likely that you are familiar with the benefits of saving to a workplace savings plan and are at least somewhat aware of your salary deferral limit. What most do not realize is that you may be able to sock away more, and even more strategically, than you […]
Common Investor Mistakes – Pt. 2: Risk Tolerance
This is Part 2 of my series on common investor mistakes. In Part 1, I went into detail about the common investor mistake of Emotional Trading. This blog expands on that topic by talking about risk tolerance and portfolio construction which can influence people making emotional trading decisions. First, let us start by defining […]
Common Investor Mistakes – Pt. 1: Emotional Trading
Are you making avoidable mistakes in your portfolio because of some behavior bias? If you answered no to this question, you might be suffering from having an overconfidence bias which will ultimately lead to making mistakes. Much of today’s academia concentrates on traditional finance. Traditional finance ignores how individuals actually behave and instead focuses on […]
Closer to College – Key 529 Plan Facts
You have saved for many years into your child’s 529 plan and now you and your child are on the verge of college tours and applications to decide where your child will spend the next 4 years of their life. Now is a good time to familiarize yourself with some of the nuisances of 529 […]
Hiring a Financial Advisor – The “When, Why, and Who”
WHEN should you start looking for an advisor? For many, hiring an advisor should be considered during the accumulation phase of their life. Unfortunately, many people assume they only need an advisor when they have accumulated a certain amount of wealth, are nearing retirement, or both. In reality, this assumption could not be further from […]
Asset Location: 3 Steps for Success
Asset location is an important aspect of portfolio composition and one that often gets overlooked. Like many concepts in finance, it can be part art and part science. What is asset location? It is the concept of how to utilize different savings vehicles and where to place investments among those vehicles to minimize income tax. Here we will talk about 3 steps to follow for success. 1. Establish 3 Buckets to Provide a Foundation In order to utilize asset location […]
How Much Cash Should I Hold?
Most people hold cash in some combination of checking and savings accounts at a bank. The cash in these accounts is used to pay for normal everyday expenses throughout a typical month. However, in addition to holding cash in a checking/savings account to pay for bills, you should also consider having a separate savings account designated as an emergency fund. This emergency fund won’t fluctuate monthly like your checking and savings accounts and the purpose of holding it is to be a buffer against an unforeseen event. Having an emergency […]
Password Management – Best Practices
It seems like everywhere you turn online these days, you are being asked to create an account and subsequent password. Want to buy textbooks for your college student or reference your doctor’s advice from your last visit? Well, set up an account and create a password! Passwords are now needed for everything from retail websites, social media, and e–mail accounts to medical providers and financial institutions. According to the latest research by NordPass, the average person has 100 passwords to remember! Obviously, some of these passwords […]