405, 2018

What does it mean to “Sell in May and Go Away”?

Categories: Investing|Tags: , |

Is this a worthwhile investing strategy? One of the oldest stock market strategies is to “Sell in May and Go Away”. But what does this phrase mean? Is there any historical reason for selling stocks in May and leaving the market? What are the risks? The Strategy “Sell in May and go away” is a well-known trading adage that counsels investors to sell their stocks in May to avoid a seasonal decline in the stock market. An investor selling his or her stocks in May would then buy stocks again in November because the November [...]

205, 2018

Set Goals as You Save & Invest

Categories: Financial Planning|Tags: , |

Goals give you focus. To find and establish your investing and saving goals, first ask yourself what you want to accomplish. Do you want to build an emergency fund? Build college savings for your child? Have a large retirement fund by age 60? Once you have a defined motivation, a monetary goal can arise. It can be easier to dedicate yourself to a goal rather than a hope or a wish. That level of dedication is important, as saving and investing usually comes with a degree of personal sacrifice. When you dedicate yourself to a [...]

2704, 2018

Volatility Is Not Risk

Categories: Investing|Tags: |

What is risk? To the conservative investor, risk is a negative. To the opportunistic investor, risk is a factor to tolerate and accept. Whatever the perception of risk, it should not be confused with volatility. That confusion occurs much too frequently.   Volatility can be considered a measurement of risk, but it is not risk itself. Many investors and academics measure investment risk in terms of beta; that is, in terms of an investment’s ups and downs in relation to a market sector or the entirety of the market. If you want to measure volatility [...]

2704, 2018

Money Habits That May Help You Become Wealthier

Categories: Financial Planning, Retirement|Tags: |

Financially speaking, what do some households do right?   Why do some households tread water financially while others make progress? Does it come down to habits? Sometimes the difference starts there. A household that prioritizes paying itself first may end up in much better financial shape in the long run than other households.   Some families see themselves as savers, others as spenders. The spenders may enjoy affluence now, but they also may be setting themselves up for financial struggles down the road. The savers better position themselves for financial emergencies and the creation of [...]