Mon, 20 October 2014
You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to underperform the very assets they invest in. In this episode, I discuss 7 steps to help you fight through a normal market correction.
Invest Wisely: 7 Steps to Fighting Through a Market Correction
A 2014 Dalbar Study once again showed that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.
One of the biggest contributors to this is our natural reaction to run from pain. It's a strong instinct that I struggle with during every market downturn.
In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.
Not sure how? Find someone to help.
Investing wisely is easy to understand. The hard part is sticking to a well thought out plan when you get punched in the face by a market correction.
Plan Well: Budgets That Work With Jim Munchbach
Recently I had the pleasure of talking with Jim Munchbach from imakeyourmoneycount.com about how to find a budget that works for you. Jim is a Certified Financial Planner, State Farm agent and instructor of Introduction to Personal Finance at the University of Houston.
Here are some of the topics we cover:
Retirement Toolbox: Retirement Planning Worksheet
This worksheet may help you determine if your current retirement savings effort is on course or if you need to chart a new direction to help reach the retirement destination that you desire. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retirement Planning Worksheet.