Have you heard this year’s version of Wall Street’s favorite joke? “We’re going to predict how the stock market does this year!“ Woof. Yikes. Why?! 1-year stock predictions are pointless. We’d all be better off accepting that fact. Risk, Reward, Timelines, and More Time and again, I want to ensure every long-term investor understands the […]
Here’s a fun question from friend-of-the-blog CJ: “I was hanging out with family and friends around Thanksgiving, and I wanted to gauge their opinion on something interesting: Who is more famous globally: Taylor Swift or Cristiano Ronaldo? Almost everyone I asked [for reference, readers: CJ is about 30-years old and lives near me in Western […]
“If all you have is a hammer, everything looks like a nail.” We’ve all heard that phrase, alongside the concept of having “the right tool for the job.” I submit that many people in the retirement planning community (especially online in DIYer circles) do not have the right tools or mental models for including long-term […]
Much ink has been spilled on the 4% rule, including here on The Best Interest. The short and sweet definition? The 4% rule is a retirement strategy that suggests withdrawing 4% of your portfolio’s value annually, adjusted for inflation, to ensure your savings last for a 30-year retirement. If you’d like to dive deeper on […]
Whether you’re a dedicated DIYer or prefer to lean on professional guidance, the truth is clear: smart financial planning can save you a lot of money over time. Below, I’ll share some recent examples of tactical planning moves I participated in, including how much money was saved. COVID Panic In March 2020, you could be […]
The bachelor party decided to go to the casino. I happily went along for the ride. The behavioral finance nerd in me was ready to witness fascinating behavior. Gambling can certainly be entertaining, but it’s not financially savvy. As long as you know that, you’ll be ok – albeit a little lighter in the wallet. […]
In August 1979, Warren Buffett wrote an article for Forbes attacking the herd instinct of investors. The late 1970s were tough for the American economy, and the stock market reacted harshly. Buffett wrote, “…the future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually, is […]
Caleb writes in this week with a SPICY question. The answer surprised me. It might surprise you too. Jesse – I work for a small company that does not currently offer a 401(k) match. Do the numbers still suggest I should utilize it? Caleb What Are We Comparing? We need a point of comparison. If […]
You need to understand your willingness, need, and ability to take portfolio risks. It’s an idea that straddles the line between personal preference and objective truth. Let’s break down each of the three constituents, then put it all together with an example. Need Your need to take risks relates to the amount of objective investment […]
Imagine you’re a gardener. You spend a weekend building a few raised beds, planting sunflowers and corn, etc. It’s a nice little hobby. Your first summer gardening ends up successful and fulfilling. You come back for Year 2 with vigor! You want to expand. You spend a month preparing your beds and double the size […]
