As our sons started to dip their toes in online consumerism via eBay and Amazon, I realized it was time for an education. Armed with gift cards and trigger-happy index fingers, it was too easy to buy. They lacked the healthy skepticism smart consumers have. They would inadvertently buy an accessory to something, when they thought the main item was included, for example; or they were lured into knock-offs that they believed were real. Investing can be tricky like that, especially if you are not working with a fee-only advisor (fiduciary) who must put your needs first. Often times, investors believe that the sales guy isn’t making commissions off the sale (they are) and that the investments are without a mark-up, just because fees or sales charges weren’t clearly discussed. Investors assume that things are the way they want them to be (no charges) when that could not be further from the truth. My father, rest his soul, taught me this lesson when I came home from the mall with a pair of Read on...
Hang Up Your Bell and Your Worries
I can worry about lots of things if I let myself – I am a mother after all, so that is fused with my DNA. But one thing I’m really not worried about is an impending market crash. Why? Because that is what many people seem to be worrying about. To be clear, a correction is certainly possible; I have no crystal ball. But, being contrarian by nature, my reaction to what everyone is thinking is to move in the other direction. I’m not “making a statement” or being snarky; nor am I smarter than everyone else; it is just the way I think. I have been in the financial world for quite some time; many years as a complete novice. But even as a novice, I noticed a pattern. When everyone is so busy wearing their party hats and shaking the noise-makers, they fail to notice what looms on the horizon. Euphoria tricks investors into thinking they are invincible and that markets can only go higher. The louder the cheering, the more I quake. From my experiences, the rosier the view, the closer Read on...
Ladies, First!
A little more than two months before my due date, panic set in. Though I had much experience as an aunt and babysitter, and in spite of my life-long fantasies of motherhood, the moment was quickly approaching where my life would change forever. Change, even joyous change, can be terrifying. In my case, a difficult twin pregnancy kept very dire possibilities hanging in the balance. My husband was eerily calm; if I didn't know better I would have thought he was medicated. I spoke to my sister-in-law, whose support was always there for me like a welcoming smile. "Were you scared that you wouldn't be able to do it?" I asked. "Childbirth?" she laughed. "No. I can't even think about that! What if I can't do this job?" I was near tears. Every twin book I read described delirium to the point of doubling up on feeding one baby, while accidentally starving the other. Was this really something I would do? She laughed and gave me the best advice I have ever received, Read on...
Shoot the Inner, Sitting Duck
My last post, "Nailing Financial Predators," may have left some feeling like an easy mark. But what if we could take our six natural human responses to persuasion and make them work in our favor? Well, we can. Here are some ideas on how to proactively take charge and shoot that inner, sitting duck: 1. Authority - If we respond to the perception that someone has expertise or power over us, it's best to make sure that that reverence is actually warranted before heeding their advice. Seek out respected authorities on investing, such as Warren Buffett; who keeps his advice simple: "When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds." 2. Reciprocity - When someone does a kindness (even with ulterior motives), we are tempted to do something kind in return. What if the good starts with us? Seek out a helpful Read on...