Understanding How Personal Risk Tolerance Affects Investing Strategy

If you enjoy roller coasters, then perhaps you’ve enjoyed the last few days and months of the stock market. However, if you’re like many others, then watching the seesaw of events affect your portfolio could be causing you some sleepless nights. With the Christmas Eve drop and the after Christmas rebound of the market, now may be a great time to check your risk tolerance. What exactly is risk tolerance? I know you’ve heard that term. In fact, you may have even taken an online assessment to help you determine your own risk tolerance. Simply put, risk tolerance for most people boils down to this: “How much should you have in… Read More

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Will I Outlive My Retirement Money if I Retire at the Stock Market Peak?

If retiring early is a goal you hope to achieve, you are not alone. The FIRE (financial independence/retire early) movement is growing at a rapid pace; and why not with markets hitting all-time highs? However, have you really examined whether retiring at or near the peak of a bull market is the wisest decision? What will it mean for your portfolio if the market crashes? Maybe not as much as you would think with some expert planning. Let’s take John Doe and his family for example. John is a frugal guy and has been actively planning to retire by age 45. With the markets hitting all-time highs, he knows a… Read More

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Active Trading and The Perils Surrounding It

Gambling on purchasing a new washer when you see the latest price drop may make you a winner when it comes to saving money on a new appliance. However, when it comes to investing, that strategy, active trading or day trading, may not be your best option for winning. Some financial advisors can give a great sales pitch on why you should buy and sell securities for short periods of time. Basically, you are buying and selling stocks on a regular basis. The goal is to take advantage of short-term movements in price on investments that are in higher demand. More often than not though, active trading and the perils… Read More

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