My wife and I play in a fantasy football league comprised of a handful of other couples in and around our neighborhood. This season something interesting happened. As the start of our season drew near, one of the couples in the league had to back out. With literally a couple of weeks left before the start of the season we were in a pinch as nine couples had to decide on one other couple to join the league. Dicey, at best.
What Is A 401(k) Match?
Most of you reading this likely contribute to your employer's 401(k) plan. And a good percentage of you also receive matching contributions from your employer. Or if you own your own business, you might contribute to and also be responsible for the matching contributions. I imagine you've heard these employer matching contributions referred to as "free money". Sure, we can call it that and if it feels good, do it. If you aren't taking advantage of your company's match…
Wits & Wagers
Last week we were on vacation at my in laws house. Close family friends joined us for the trip and a couple of nights were spent around the table competing in the board game called Wits & Wagers. We paired up into teams of two with each team consisting of an adult and a kid. If you know anything about our family, we trend toward the "more competitive" side of the ledger. It was an intense couple of nights. Well, about as intense as a game of Wits & Wagers can get!
Stay The Course
Jack Bogle passed away earlier this year. If you don't know who he is, no worries. You can read about him here. Basically, he was, is, and forever will be a legend in the investing world. He founded the mutual fund company, Vanguard. He also pioneered the index fund and impacted countless individual investors.
When it came to investing, Mr. Bogle had a famous quote: "stay the course." It was even the title of his book.
Simple, not easy.
But what if we don't have a course to begin with? How can we "stay the course" then?
Better Than Average
In one of my peer groups, a fun poll was posed to us and essentially it asked if our profession (financial advisors) would be more fun if we could reliably beat the market. I got a good chuckle out of it, because, obviously, who doesn't want to beat the market?!? You do. I do. And yes, it would certainly make client conversations a little easier. Maybe a lot. Lol.
But this question also got me thinking. Why are we so wrapped up with trying to beat the market?
How Much Risk Should I Take?
Ahhhhhh, risk and reward. Always the teeter totter of investment conversations. When it comes to investing, we all want to have our cake and eat it too. Meaning we want the maximum return - all the upside in the market. And we want nothing to do with the risk - when the markets go down. Who wouldn't want that?!
Unfortunately that's not how the markets work. In order for our money to grow…
The Tooth Fairy Knows About Inflation
Our youngest son, Sutton, has lost 4 teeth in the last two months. Unfortunately for him, they are his top 4 front teeth. That's right, all of them in a row. So as you can imagine, the Tooth Fairy has been to our house at a pretty good clip.
Sutton has also been socking away some Tooth Fairy cheddar at a pretty good clip, too. Tooth Fairy in the StranClan house pays $2 per tooth. The Tooth Fairy has a stout collection of the very rare $2 bill as well as…
Shadow, or no?
On February 2, 2019 good ol' Punxatawny Phil did not see his shadow. And for those of you keeping score at home, it's only the 10th time in 123 recorded instance he did not see his shadow. So will we have an early spring, as legend suggests we will? According to this USA Today story, Punxatawny Phil doesn't have a very stellar track record.
Yet for those of us that don't care for…
Gearing Up For The Next Market Crash
I recently received an email from a colleague. In his email he asked if I was ready for the impending market crash (his words, not mine). Perhaps not ironically, he sent this email just before history was made on August 22, 2018. This date marked when the bull market that started roaring after the Global Financial Crisis became the longest running in US history.
In addition to my colleague's inquiry, I've been asked many times this year (and years prior), about the "impending market crash." My answer was and remains the same. Here it is:
Luck vs. Skill
"I'd rather be lucky than good."
I understand the meaning behind the statement. I just don't get why we'd rather be lucky than good, especially when it comes to investing.
Yes, luck plays a part in most of our lives. I am lucky to have met my wife. Okay, very lucky. I am lucky to be blessed with five kids. Also very lucky. On the other hand, being lucky doesn't automatically make me a good husband, nor does being lucky make me a good father, either. These are skills we have to work at.
On the golf course, I'm pretty good. I have some skill - I happen to be…