Don’t Fear the Stock Market (And Other Personal Finance News)
The world of personal finance is so rich (pun absolutely intended): from retirement advice to side hustles, and robo-advisors to the stock market, personal finance bloggers have something for everyone at any stage of their financial journey. This post roundup features many different viewpoints from the personal finance community.
FIRE (Financial Independence Retire Early) is one of the current movements in the personal finance world. Everyone wants to know how they can liberate themselves from the 9-5 while still making ends meet. But is that a move everyone can make? Our first article argues that it might be more difficult than it seems.
Even if FIRE is attainable, you need tools to get there. Some of the other articles we’ve chosen to share with you today feature one way you can get to financial independence and a health retirement fund: the stock market. It may seem scary, but these personal finance gurus have ample experience and advice for everyone from beginners to seasoned stock market pros.
Don’t forget about side hustling on your quest for financial independence. Passive income streams are essential for anyone looking to escape ties to work and live a financially freeing life.
Investment Post Roundup
“Early Retirement is Elitist” by Tim Stobbs at Canadian Dream Free at 45
As the title suggests, Tim points out that the people who subscribe to the FIRE lifestyle are elitist.
Although finance bloggers who have achieved early retirement tout the benefits of saving large percentages of their income, Tim sees a different side of the story: that some people are just set up to reach early retirement earlier than others. Factors that may effect this are over middle class upbringings, parents who can afford to pay for college, living in an area with a low cost of living, and holding a career that brings in a lot of money.
“Heads My Stocks Win ,Tails Yours Lose: The Difference Between Daily Returns and a Coin Flip” by Bob French at Retirement Researcher
Bob’s article at Retirement Researcher might not be comforting for those who like to watch the stock market every day. He compared the ups and downs of two stocks to the random flipping of a coin and put the results on a graph.
It was essentially impossible to tell which graph represented the random coin or the stock market.
Far from making this discouraging, Bob’s point illustrates why it’s important to watch the market over the long term instead of the daily ups and downs. While it can be comforting to see the market rising each day, only long-term success or failure is really impactful.
“How to Set Up Multiple Streams of Passive Income” by Denis O’Brien at Chain of Wealth
This is a massive guide to setting up passive income! Denis has designed a comprehensive guide to all things passive income, from what it is to how to get started, and everything in between!
Beyond simply tips for achieving passive income, Denis also provides readers with ideas for making the most of their financial situation. After all, passive income can only be helpful if it’s bringing in enough income to better your life in some way. For that reason, this guide also contains information about budgeting and ensuring that your finances stay on track through the passive income process.
“Is the Stock Market Overpriced? Featuring Barbara Friedberg” by Jim Blasingame, the Small Business Advocate
In these interviews, Jim Blasingame talks with Barbara Friedberg about the price of the stock market, what will triggerer the next stock market crash and the economy. In under 6 minutes a segment, listeners can get a quick overview about why the stock market can be so expensive, the relationship between technology and the growth of the market, and why 2008 is still in the minds of so many inventors.
“My Best Advice for Volatile Markets—Don’t Panic” guest post by Fred on The Rich Miser
In this post, Fred shares his top tip for dealing with volatility in the stock market: staying calm. Through a handy chart, he shows that the market frequently experiences abrupt shifts and downturns, and reassures nervous investors that these sort of dips are normal.
It’s not all good news, of course: there will always be downturns that last more than a few months, which Fred calls “part of the stock market.” He cautions investors against assuming the market is a get-rich-quick scheme and encourages people to be prepared to invest for the long haul if they want to see substantial growth.
“The Future of Artificial Intelligence in Personal Finance” by Bernz JP at Moneylogue
Artificial Intelligence is all around us, and Bernz hones in on the kind you really want to know about: the AI that guides our finances. He lists some of the benefits of algorithmic financial planning, including identifying holes in financial plans, quickly buying and selling stocks, and saving money automatically, as examples of how we are already embracing AI in connection with our finances.
This post is extremely helpful in that it gives a rundown of many different automated or AI financial platforms that will help you in any financial task, from saving to investing.
“Here is How to Build an Evidence-Based Portfolio” by Fred Leamnson at Money with a Purpose
This is the third installment in Fred’s guide to building an evidence-based portfolio. Investors wo have already checked out parts one and two now know about the role of stocks and bonds in evidenced-based investing; now, Fred teaches investors how to identify their purpose and put everything together.
Fred covers a few key points in this piece: the importance of time and risk tolerance in setting up a good portfolio, diversification, investment “vehicles” like ETFs, asset classes, and more. This is an in-depth article, designed to help those who want evidence-based portfolios to make strong choices.