A bull market occurs when a broad market index rises at least 20% over two months or more. Bull markets signal higher levels of investor confidence and optimism about the future of the market. They are generally a sign of a strong, healthy economy. The opposite scenario, in which stock prices fall by 20% over […]
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They are ugly but expected parts of investing. Here’s what you need to know.
When I told readers that January would be “back to basics” month at Get Rich Slowly, the number-one request I received was to write about how to invest.
Rather than scatter investing info throughout the month, I decided to collect the essentials into one mammoth article. Here it is: all you need to know about how to invest — even if you’re a beginner.
In writing this article, I tried not to bog it down with jargon and definitions. (I’m sure I let some of that slip through the cracks, though. I apologize.) Nor did I dive deep. Instead, I aimed to share the basic info you need to get started with investing.
What follows are eight simple rules for how to invest. And in the end, I’ll show you how to put these rules into practice. First, let’s dispel some popular misconceptions.
Investing scares many people. The subject seems complicated and mysterious, almost magical. Or maybe it seems like gambling. When the average person meets with his financial adviser, it’s often easiest to sit still, smile, and nod.
One of the problems is that the investing world is filled with jargon. What are commodities? What’s alpha? An expense ratio? How do bonds differ from stocks? And sometimes, familiar terms â such as risk â mean something altogether different on Wall Street than they do on Main Street.
Plus, we’re bombarded by conflicting opinions. Everywhere you look, there’s a financial expert who’s convinced she’s right. There’s a never-ending flood of opinions about how to invest, and many of them are contradictory. One guru says to buy real estate, another says to buy gold. Your cousin got rich with Bitcoin. One pundit argues that the stock market is headed for record highs, while her partner says we’re due for a “correction”. Who should you believe?
Perhaps the biggest problem is complexity â or perceived complexity. To survive and seem useful, the financial services industry has created an aura of mystery around investing, and then offered itself as a light in the darkness. (How convenient!) As amateurs, it’s easy to buy into the idea that we need somebody to lead us through the jungle of finance.
Here’s the truth: Investing doesn’t have to be difficult. Investing is not gambling, and it’s not magic.
You are perfectly capable of learning how to invest. In fact, it’s likely that — even if you know nothing right now — you can earn better investment returns than 80% of the population without any scammy tricks or expensive tips sheets.
Today, I want to convince you that if you keep things simple, you can do your own investing and receive above-average returns â all with a minimum of work and worry. Sound good? Great! Let’s learn how to invest.
Annuities, come in all shapes and sizes, but fixed indexed annuities are one of the more interesting types of annuities. They provide a unique combination of protection of principal, as well as the ability to earn investment returns that are higher than what you can get on fixed income investments. The perfect investment? No investment […]
The post Fixed Indexed Annuities – Participation on the Way Up, Protection on the Way Down appeared first on Good Financial Cents®.
Youâre bound to make a few rookie errors when trying out anything for the first time, whether itâs making homemade greek yogurt, growing heirloom tomatoes, or learning to drive. After all, learning is a process, and trial and error is a large part of that painfulâyet essentialâprocess. And when it comes to investing, you might
The post Newbie Investing Mistakes and How to Avoid Them appeared first on MintLife Blog.
Investing in the stock market can be an extremely lucrative financial decision if you play your cards rightâbut in order to do that, you have to know a thing or two about how the stock market works. There are many things that can impact the trajectory of your stocksâindustry changes, market volatility, and company financial
The post How to Prepare for a Stock Market Correction appeared first on MintLife Blog.
I was a college intern at a local investment firm when I first learned what a âstock market crashâ was. It was 2001 and the market was already on the decline. After the tragic events of 9/11, the stock market continued to lose value. Hereâs how the S&P 500 looked in 2001 (chart courtesy of […]
The post Top 10 WORST Stock Market Crashes in History appeared first on Good Financial Cents®.
Who am I kidding?
I can’t go an entire month without publishing anything here at Get Rich Slowly. I need to write. And judging from the feedback regarding my planned sabbatical, you folks want me to write! Tell you what, let’s change the premise.
Instead of taking all of September off from publishing, I’ll instead vow that for the next four weeks, I won’t tackle any major articles. If there’s something that I want to share and that thing can be shared in 20-30 minutes, I’ll do it. This plan will serve the same objective — freeing my mind to focus on the other tasks that need to get done around here — while also giving me an outlet for my writing (and giving you something to read).