Posts

Showing posts from August, 2020

Stick to the Plan! Why FOMO Can Kill Your Investment Portfolio

From a Jeff Clark newsletter, where he talks about FOMO (Fear of Missing Out) and what risks it entails to investors. Why FOMO could ruin youBy Jeff ClarkIn 1999, the various conservative mutual funds I recommended they invest in earned 58%. It was far more than we had projected. It was far more than they needed to maintain their standard of living.

But, the Munder NetNet Fund their neighbor invested in – which only bought internet-related stocks – earned three times that amount.

The couple told me they wanted to sell the funds I recommended and put everything into the Munder NetNet Fund.

I reminded them of their long-term goals. I told them that 1999 was an “outlier” year. Just about everything made money. They had made far more money in their conservative funds than we had projected. It wasn’t likely to happen again anytime soon.

And even though I would have profited handsomely on the commission earned by selling their existing funds and buying the Munder NetNet Fund, I told them not t…

Personal Finance in 10 Simple Sentences

Image
I moved #10 to #1, because it is actually the most important.
1. You need a written budget and a written plan for your money 2. Spend less than you earn3. Create an emergency fund immediately 4. There is no tomorrow; start today 5. It's purely on your shoulders 6. The "Joneses" are living a lie 7. Pay off your debt 8. Create multiple sources of income 9. Personal finance is 20% knowledge and 80% behavior 10. Income does not determine your wealth