20 second advisor

Financial insights and tips...all in 20 seconds

20 Second Advisor: Let Your Kids Fail Financially

We must allow our kids to fail so they can learn. By failing, they gain wisdom. They learn resilience. They learn how to solve problems on their own. This applies to money as well, but it’s not easy for me to watch. On each family trip, we give our kids a certain amount of money…

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20 Second Advisor: The Weight of Decades vs The Opinion of Weeks

Benjamin Graham – one of the fathers of value investing is credited with the following quote: In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine. Benjamin Graham, as Quoted in…

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20 Second Advisor: Where there is a beginning, there is always an end

When it comes to bear markets, investors can take comfort from history, which suggests that where there’s a beginning, there’s always an end. We don’t know exactly when the bear market will end, but history says we have a few months left to endure after the S&P 500 tumbled into bear market territory last week. And…

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20 Second Advisor: Bear market & what can I do about inflation?

We are now technically in a bear market (investment markets down 20% from their peak). Some of the recent downward pressure is due to inflation expectations and rising interest rates. I was listening to a podcast recently that was explaining the Federal Reserves’ role in trying to curb inflation. It made me think, “what can…

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20 Second Advisor: My Bike Ride Across GA & Investments

This past weekend, I got to take part in BRAG (Bicycle Race Across GA). A friend and I chose to ride for 3 of the 7 days (from Columbus GA to Dublin GA). Some interesting lessons learned (and that apply to investments are): The power of groups (ie drafting). A lot of the time, my…

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20 Second Advisor: Summer travel tips

Summer is in full swing. Are you thinking of taking a summer trip? Here are some travel tips to help you navigate the soaring gas prices, airfare, and hotel fares. Consider going to Europe; the dollar is strong relative to the Euro One place to search for the best room rates is Hotels.com’s new Hot Price…

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20 Second Advisor: Follower or Leader?

My girls are really into softball. At the end of season party, one parent shared this touching story about their daughter (we will call her G). G was interviewing with a private school. The school asked, “Are you a follower or leader?” G responded, “I’m a follower!” G’s parents got really nervous and thought…wrong answer.…

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20 Second Advisor: Investor vs Speculator?

I’m a firm believer that investments should have expected future cash flow. True investors should “expect” to be compensated for delaying gratification and taking risk (ie uncertainty). If an “investment” doesn’t have future expected cash flow, it is not an investment. Rather, it is a speculative guess. These speculative guesses are based purely on the…

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20 Second Advisor: Should I stay in bonds?

You may be asking: Why have my fixed income funds lost money? The short answer: The Effective Federal Funds rate has increased year to date; buyers and sellers have incorporated that information, as well as their expectations about future changes in interest rates, into prices. Just remember that when the yield of a bond increases,…

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