A recent survey by MagnifyMoney found that a significant portion of investors, particularly younger investors, have taken on debt to invest. Out of about 1000 investors surveyed, 40% took on debt to invest. Here's how that broke down by age group: Generation Percent who took on debt to invest Z80%Millennials60%X28% Baby boomers 9% Of those … Continue reading Don’t Take Out Personal Loans To Invest
Investing can be simple, or it can be quite complex. For most people, simplicity is the best choice. Just invest in a total market or S&P 500 index fund, and you'll be good to go (check out The Simple Way To Become A Millionaire). This allows you to take advantage of compounding in the stock … Continue reading Why I Like Covered Calls
One of the biggest weak points for an investor is the emotional component to watching your money rise and fall. Most investors underperform the market, and a big reason for that is emotional investing. People tend to buy into the market when it rises for fear of missing out on gains, and then they sell … Continue reading Why You Should Be Careful About Reference Points When Investing
It is very common for investors to own securities mostly or entirely from the country they live in. This is known as home bias. For investors living in the U.S., this has worked out quite well historically, while it may have been less lucrative for those living in other regions. However, the U.S. stock market … Continue reading What Are The Best Performing International Stock Markets?
When I first started investing years ago, I didn't really know what I was doing. I wanted to play around with stocks, but I didn't want to risk losing all my money. For that reason, I decided to place some of my money under management by financial professionals. I figured that the experts would know … Continue reading Your Financial Advisor May Be Losing You Money, Study Claims
When you buy a stock, mutual fund, or ETF, you are often asked whether you want to reinvest your dividends. This may seem trivial to you, but it could have a big impact on your investments, depending on how frequently dividends are issued and how large they are in comparison to the share price. To … Continue reading Should You Reinvest Dividends?
I started investing about 11 years ago, and my wife started more recently, in 2017. Though we started investing at different times and at different ages, we both made a lot of mistakes in our first year. Amateur investors often end up losing money when they first enter the market, either because they are overconfident, … Continue reading Amateur Investing Mistakes To Learn From
Ever since we started this blog, I have been tirelessly promoting the importance of wealth management at an early age among our friend circle. However, whenever I mentioned the stock market to my immigrant friends, I often received an interesting reaction--they either assume that investing can wait till they are more established or profess complete … Continue reading How Do Immigrants Invest? The Financial Decisions of Immigrant Households
While it is very difficult to accurately predict the stock market, as discussed in my article "Should You Wait To Buy The Dip? Why This Strategy May Cost You," investor confidence can be used as an indicator to assess how the market may move. If investors are confident in the market, then people are more … Continue reading How Do Investors Feel About The Stock Market For 2021?
I keep hearing people say that putting money into the stock market now, when it's hitting new highs practically every day, is a bad idea, and that you should instead wait for the next dip or crash to invest. This seems sensible on its face. Why buy overvalued stocks now when you could theoretically buy … Continue reading Should You Wait To Buy The Dip? Why This Strategy May Cost You