Have you ever hit up the mall, seen something you’ve had your eye on for months marked 40% to 90% off, and then agonized over whether to buy it or not? I’m guessing not. If you want it, it’s in good shape, and you’ve got the money, what’s there to agonize about? That it might go on sale more?
Even stranger, I suppose, would be seeing an item marked “Now 30% more expensive!” and rushing to the store to grab it before it’s gone.
But that’s exactly how many people treat the stock market. When it’s on sale, they panic and sell the stocks they own, or at the very least avoid buying new ones. When prices get marked up (especially if they get marked up a LOT) they rush to buy. » Read more
This post is from Joseph Hogue, CFA, who is an investment analyst and author of The Passive Income Myth: How to Create a Stream of Income from Real Estate, Blogging, Stocks and Bonds. (Join the community on PeerFinance101 for more tips on investing, managing debt and reaching your financial goals.)
Real estate rentals can be great investments
Of all the passive income strategies in which I’ve invested, my favorite has got to be real estate. Ever since Will Rogers made his famous quote about real estate in the 1930s (“Buy land. They ain’t making any more of the stuff.”), people have lined up to get in on the action.
It’s spawned libraries of books and countless strategies promising six-figure incomes on little more effort than picking up rent checks.
The only problem…it’s a passive income myth! » Read more
This post is from an evangelist of an investment method called valuation-informed indexing (VII). The post compares and contrasts that method with the more traditional buy-and-hold method, talks about the potential impact on retirement, and points out that investors have a choice about how much risk they want to take on.
Investing research affects the lives of millions in intensely personal ways. We don’t get a second chance to decide on an investing strategy. Most of us have available to us about 40 years (from age 25 to age 65) to finance our retirements. The trouble is, there are millions who will be learning very late in life that they do not have nearly the amount of resources they need to finance a secure middle-class retirement.
Why? Because of their investing strategy. » Read more
“Investing” can be an intimidating term. It conjures up movie-like visions of traders frantically shouting “Buy!” or “Sell!” while stock tickers scroll by at lightning speed and phones ring off the hook. And then there’s the alphabet soup of acronyms that seem to go hand in hand with investing: IRA, S&P 500, EBITDA, you name it.
So it’s no wonder we sometimes think we have to be an expert or have a lot of money in order to begin investing. But that couldn’t be further from the truth. » Read more