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historical stock and bond returns

Why I Used to Invest in Individual Stocks + Now I Don’t

Recommended Investing and Money Articles and Links Many years ago, I was terrified of the stock market. I thought it would steal all of your money. With depression-era parents, the anecdotal information about the stock market crash of 1929 seemed frightening. I believed that you could lose all of your money if you invested in the stock market. I started investing in my 20’s with a traditional stock broker and various versions of bonds and bond funds (and 1 stock recommended by my cousin).

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Contribute to Roth IRA or 401(k)

Should I Contribute to a Roth IRA or a 401(k), if I Can’t Fund Both?

6 Step Plan to Decide Where to Invest for Retirement Monica from MonicaOnMoney.com asks; Should I contribute to a Roth IRA or a 401(k), if I can’t fund both? (Thanks for answering, I love this idea for your blog) This is a common question for those just starting out. A 20-something, in her first job is automatically enrolled in her workplace 401(k) program. That’s a good thing, since it gets her money working and growing for the future! But, wait a minute, is the company 401(k) the best choic…

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money is only a tool

Retirement, Money + Investing Reads

Retirement Statistics + Educational Money Reads Don’t forget that money is a means to an end, not an end itself. One of life’s biggest challenges is balancing competing demands. With work, family, leisure are all vying for our attention, it’s tough to figure out how to find time and money to save for the future. As we know, money doesn’t necessarily equal happiness, yet it does solve money problems. One of my tricks to keep things in perspective is to consider what I’m doing today that will m…

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How to become a successful investor.

3 Tips to Become a Successful Investor

Investing and Financial Success I had the pleasure of being recruited at an important financial conference to give my best finance and tips to become a successful investor. It was not only fun to talk about what works in wealth building, but also great to do it ‘on camera’. I love to share the ways to become a successful investor and the more you get the steps and strategies to build wealth, the fewer financial stresses you experience. Smart small and you’ll be amazed at how a few money chang…

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What are the impacts of globalization?

The Positive and Negative Impacts of Globalization; Financial and Other Implications

Financial and Societal Consequences of Globalization The global economy continues to be in the forefront of the media. In a recent Wall Street Journal article, “U.S. Firms Move Abroad to Cut Taxes”, several U.S. companies are profiled as they move their headquarters abroad to save on taxes. This particular cost cutting strategy impacts consumers as lower taxes for a corporation leads to greater profits which can be used to stabilize consumer prices. Globalization has massive impacts on our ec…

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where are the customer's yachts. ways the financial industry is trying to screw you.

20 Ways the Investing Industry is Trying to Scr*w You

Is the Investing Industry Trying to Scr*w You? Once in the dear dead days beyond recall, an out-of-town visitor was being shown the wonders of the New York financial district. When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor. He said, “Look, those are the bankers’ and brokers’ yachts.” “Where are the customers’ yachts?” asked the naïve visitor. –Ancient story I started this website to give you a cheap alternative to build wealth with inv…

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Understand hidden investment risk to prepare for market corrections

8 Hidden Investment Risks

Don’t be nervous about investment risks. There are risks or possible negative outcomes in nearly everything you do. You might lose your job, have a huge unplanned bill or medical expense, or an automobile accident. You may undoubtedly buy the wrong sized shoes or clothes, your children might get sick or you might crack a tooth while eating something. In investing, some risks are apparent and obvious, while others may be hidden from your view, no matter how much time you spend managing your in…

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tactical asset allocation

What To Do With Your Investments Right Now

I advocate the Valuation-Informed Indexing Model for understanding how stock investing works. This is the model rooted in the research of Yale Economics Professor Robert Shiller. It is similar to the far more popular Buy-and-Hold Model in all respects but one — Valuation-Informed Indexers believe that risk increases with increases in valuations and that investors thus must adjust their stock allocations in response to big valuation shifts to have any hope of keeping their risk profiles consta…

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predicting the stock market

Predicting Stock Returns for Fun and Profit

The obvious question is — Given how hard it is to make good short-term predictions, how can it be that long-term predictions always work? I believe it is because investor emotion is not the primary influence on stock prices in the long term.

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