Here’s a story that’s supposed to illustrate a quick way to invest in the stock market and make a lot of money:
They say that legendary investor Peter Lynch, who ran one of the biggest mutual funds of all time, discovered L’eggs, not from his market research, but rather from his wife…. Read more
“What investment tool I can use to make money like the rich people do?” a new client asked me. I could see he wasn’t looking for an in-depth financial education about how to identify great stocks. He just wanted a simple system he could easily follow to increase his chances of making money. … Read more
When you withdraw money from your IRA (or if you inherited an Individual Retirement Account from someone and take yearly distributions), don’t fool yourself.
Just because you withdraw money from a retirement account does not mean that you actually made that money. Rather, you might just be pulling out your principal. … Read more
If I asked you, “How much money do you want to lose in a risky investment?” you would probably think this was a strange question. However, you must consider the risks before you invest.
When you put money in the stock market you give up the certainty in return for the potential reward of growth…. Read more
Simple investments can help increase your returns.
When Confucius said, “Life is really simple, but we insist on making it complicated,” he could have been alluding to the fact that using complicated investing strategies can reduce your overall performance. Simple investment strategies (like diversification and dollar-cost averaging) may have the best chance to lead to long-term success…. Read more
“If you spend that amount of money from the inheritance you just received,” I told a client a few years ago, “it’s going to vanish over time.” Guess what? It did. This client spent hundreds of thousands of dollars and had nothing to show for it, other than feelings of regret…. Read more
Recently, I found myself in the Financial Professional’s Twilight Zone when a client assured me, “It’s OK if I lose money. My investments are for the long term and the market always goes back up eventually.” Why was this client so carefree?
Some investors think that if they lose money on an investment,… Read more
“Copycat trading” is when a regular trader copies the trades of more experienced and successful traders. It sounds simple enough: copying someone else’s trades makes trading easier for you as it eliminates the need for you to do your own research. If you want to trade foreign exchange, for example, just follow the top performing foreign exchange trader;… Read more
Can you make more money gambling in a casino or investing in the stock market?
Both investors and gamblers make decisions on where to place their money based on the likelihood of certain events happening. The probability of high gambling returns is low. In fact, the slot machine is the ultimate game of chance as its returns are random…. Read more
When potential clients come in for an introductory meeting, I find that they frequently ask me the wrong questions. While my background and my firm’s corporate culture (“servicing our clients” is our priority) are important topics, details like specific investments and historical rates of return shouldn’t be the focus of the initial meeting…. Read more
