Category: Investing
Helping You Stay Calm When the Market is NOT
Investing and going it alone is easy when the markets are up, as they were last year. But it’s a different game when markets are volatile, as they have been this year, or when markets are down, as they definitely will be at some point in the future. We help our clients put these different stages of the market cycle in perspective. Who helps you? Our goal is the same as our clients; to develop a long term strategy and stay invested. That was easier said than done last quarter when the S & P 500 dropped 10% in 11 days and then again 5% a month later. And, this quarter promises just as much excitement. Triggers for market volatility can come in many different shapes and sizes—policy uncertainty in Washington or Beijing, earnings reports, geopolitical unrest. And market swings can rattle even seasoned investors' nerves. But volatility is part and parcel of investing. So put such uncertain times to good use as a motivator to help ensure your investment strategy aligns with your long-term goals, timeline and stomach for risk. Dramatic moves in the market may cause you to question your strategy and worry about your money. A natural reaction to that fear might be to reduce or eliminate any exposure to stocks, thinking it will stem further losses and calm your fears, but that may not make sense in the long run. Instead of being worried by volatility, be prepared. A well-defined investing plan tailored to your goals and financial situation can help you be read
Introducing Kids and Grand-Kids to Investing
Introducing Kids (and Grandkids!) to Investing Setting the stage As your kids learn more about managing their money, introduce the concept of investing. It's a great way to reinforce the ideas of goal setting, saving, and budgeting. It can help put them on a long-term path to financial independence. Keep it simple When kids are in elementary or middle school, it’s a good idea to teach kids to put money away in three buckets: save, spend and share. As they get a little older, say into high school, you can get a little more sophisticated in how you approach investing. Start by explaining that investing is a means of using your money to try to create more money. This usually starts to make more sense for kids when they start to work and they can finally realize how hard they have to work to pay for something, especially after Uncle Sam takes his fair share. Make it real You can start your investing conversation by having a family meeting. You should explain that your intention is to help your children learn that there places other than the bank where you can put your money. Instead of earning a few dollars every year in interest, they might be able to earn several hundred dollars by investing in stocks. A good place to start is with a list of things they like. This can range from where they like to eat, to where they like to shop, to their favorite electronics, what they watch on TV, even their favorite type of shoe. You can find a lot of research and report
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