Investments
20 Second Advisor: 2019 Market Review
2019 was a great year for investors! Further, the past decade produced healthy returns as well. The chart below outlines the 1, 5, and 10 year annual returns for different investments. Click here for our full 2019 Market Review
Read More20 Second Advisor: Investing Tip for the Next Decade: Diversify
When looking back on the past decade, most investors realized favorable returns. It’s easy to have hindsight bias and wish you had invested in the absolute best performing asset class(es). For example, you might look back and wish you had over-weighted investments in the US technology sector. However, in the earlier decade (2000-2009), US technology…
Read More20 Second Advisor: Trading Stocks Just Got A Lot Cheaper.
This week Charles Schwab announced that they will no longer charge for online trading of stocks, ETFs, and options. Prior to the announcement, Schwab was charging $4.95 per trade. Just this morning, TD Ameritrade also announced that they will cease charging customers trading commissions for online trades of stocks, ETFs, and options (see the official…
Read More20 Second Advisor: “The Worst Day Of The Year” & How You Should React.
I was reading the financial news this afternoon. The headline said, “Dow Plunges 800, Worst Day of 2019.” For many investors, that headline will cause some anxiety. Ultimately, every year will have a “worst” day as well as a “best” day. Below is a list of the best and worst days since 2008. Despite all…
Read More20 Second Advisor: Investing near an all-time high in the stock market.
Investors should not be surprised by market highs; in fact, they should happen fairly regularly if stocks are gaining value over the long term. For some investors (especially those close to retirement), a market high can feel more like an indicator to “get out” rather than to celebrate rising prices. If you feel anxious when…
Read More20 Second Advisor: Why you should diversify globally
We all know that US stocks have significantly outperformed international stocks in recent years. Because of this and the fact that many US based multinationals are major players in the world economy, many clients have asked whether international diversification is unnecessary. Not at all. A few reasons to continue investing internationally: International stocks represent about…
Read More20 Second Advisor: My private investment is fancier than your public investment! Or is it?
I often hear of investors (or even other advisors) who want to buy private equity investments with the hope of achieving better returns. Private equity is owning a company that is not publicly traded (ie it’s private). Private equity usually has little liquidity (b/c there is no public market for the shares). Private companies often…
Read More20 Second Advisor: Wild Returns – Why You’ll Rarely Have A 10% Return (in a given year).
I often try to gauge a client’s understanding of investing by asking, “What is your return expectation/hope for your portfolio?” Conservative investors will often want 4-6% returns. Aggressive investors may hope for higher returns (maybe 8-10%). Unfortunately, it is VERY rare to get returns in this range. Investing is all about bearing the UNCERTAINTY of…
Read More20 Second Advisor: This Is CRAZY Math!
You may have heard the terms “Time Value of Money” or “Compounding Interest”. Rather than define them, let me show you a quick example which will make them come alive! You begin saving $1,000 / month when you turn 40 years old You save the same amount for 30 years You earn an average annual…
Read More20 Second Advisor: Fear of Markets? The Cost of Not Investing.
Most of the time we discuss the risk (or uncertainty) individuals take when building their portfolios. Some clients have life experiences that lead them to a very conservative portfolio. Other clients don’t want to take risk AT ALL! We may not immediately think about it, but there is also a cost of NOT investing. For…
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