Behavior Finance

Do What Millionaires Do

Do What Millionaires Do

In his recent book Everyday Millionaires: How Ordinary People Built Extraordinary Wealth – and How You Can Too, author Chris Hogan sets out to prove “The American Dream is Alive and Available.” To write this book, Hogan’s team at Ramsey Solutions surveyed and/or interviewed more than 10,000 Americans over the past year.

His book follows the footsteps of one of The Wealth Group’s all-time favorite books, The Millionaire Next Door. Books like these are great at myth-busting the popular culture’s conceptions about millionaires in America. What most people think about millionaires in America is often incorrect.

The Importance of Timing Market Returns: Sort of

The Importance of Timing Market Returns: Sort of

You can’t time the market. At least I can’t. Market timing is an investment hypothesis that has been tried for the 240 years of stock exchange history in the United States. 

 

The basic idea is to buy an investment when it is “low” or undervalued, and then sell that investment when it is “high” or overvalued. The problem is that I don’t know when the “low” or “high” has truly occurred. I know when investments are “lower” and “higher”, because those terms are always relative to some reference point in the past.  

Do the Next Right Thing Now

Do the Next Right Thing Now

My wife and I enjoy taking time to talk about what we want our life to look like when we reach the point of financial independence. It is exciting to do this exercise, as it helps keep the reason behind saving, investing, and other smart financial decisions at the forefront of your mind.

Early 2019 Market Update

Early 2019 Market Update

As a part of The Wealth Group’s systematic investing process we have developed and refined, we update and review your portfolio and the internal holdings on a regular basis. This is an update based on that process, and there is no action required on your end.  

Knowing the Data

Knowing the Data

My wife and I generally agree about money. We both want to give generously to our church and other charities, we both want to save at least 15% of our income toward retirement, and we both want to have our mortgage paid off in less than 9 years (which will have been less than 15 years from when we bought our home together).