I really like this article. Thank you for posting it.
There are Captain Obvious points but it’s good for people to actually read it over and over again. I have buddies that try to time the market with the 401k or get spooked after a brutal day or week. History shows that if the market loses 1000 points in a week, it often gains back that 1000 points the next week or two. If you move funds out of stocks, all you’ve done is locked in that 1000 point loss in your 401k.
I’ve got a good friend who has been waiting 20 years or more to start investing in mutual funds. Waiting for the right time. He’s a few years older than me. It’s never going to happen. Fortunately for him he’s sitting on some valuable real estate.
Good article yet many fail to add that investing is personal… goal and risk tolerance always need to be included in any discussions.
It was refreshing to see time horizon included.
I agree. Equally dangerous is when you are scared off by record highs which are inevitable
My investment strategy is boring, dollar cost average over 30+ years and increase your contribution everytime you get a raise.
This is what I don’t understand, people who sell when the market is down and buy when he market is down. That’s a sure fire way to lose money.
Someone once wrote that you make more money when you buy and less money when you sell. For some stocks, I am looking to buy when the markets have cratered and sell when the markets are peaking. For index ETFs, I am generally buying and holding.
Yes we’re up to 14% plus the match I receive. We still have $16,000 in CC debt and $25k in student loans but I am too afraid to unwind the investment strategy especially when the interest rate has been 5%on the credit cards for about 8 years now
If you ever go bankrupt. Your 401k is protected. Make sure you focus on your 401K.
I did not know that.
The Unemployment Rate correlation was surprising to me. I did not expect to see that…
Everything else was pretty straight forward.
Also in some states your primary residence is safe from lawsuits, ask OJ.
Actually that was the surprising thing i took from the article as well.
Not from lawsuits, but safe from bankruptcy. Michael Milken, found guilty of fraud for violating security laws, bought a huge and expensive house in Florida prior to filing bankruptcy.
I thought OJ’s Florida home was safe from the civil suit he lost.