In my last blog post I discussed 5 key principles that can help people get started on the right financial track. Within this post I will dive deeper into Principle 1, which is “Know Your Numbers and Live Within Them”. Below is a list of three key numbers that everyone should know and strive to live within.
As we enter the Thanksgiving week I invite you to pause and reflect on the question above and begin an exercise. This exercise is called the grateful exercise. It only takes 10 - 15 minutes but if it takes longer it’s ok.
When I was a kid in the 1980s, my dad was a Stock Broker and the “Back to the Future” movie trilogy was huge! In the 1989 sequel, Marty goes into the future and gets a sports almanac with 50 years of sporting outcomes, which would give him the ability to successfully bet on every future sports event. My fantasy was more simple. I just wanted to go one year into the future and get a Wall Street Journal that could tell me the 12-month future stock prices for every stock. I figured I could start with $1000 and turn it into a billion dollars in 12 months with that information.
Last week in Part 2, we examined the remaining emotional biases as well as introduced social biases that many are prone to. This week we’ll cover cognitive factors that often affect investors and wrap up the discussion with helpful tips.
This is the second in a three-part series where we are examining biases in financial thinking. We learned in Part 1 that the tendency to make inaccurate judgments and misinterpretations based on emotional and social influences can affect the financial thought processes.
Simply thinking about your investments can sometimes be overwhelming. We all want to make financially healthy decisions, but sometimes various biases keep us from accomplishing our goal. This 3-part series will reveal how you may be sabotaging your own plan.
At Arista Wealth Management we are regularly asked by our clients to visit with their “millennial” children and share our expertise on ways to manage their money and build their wealth. Below is a list of the 5 simple steps that can help anyone get their finances in order.
Yes, it is. I would answer rapidly and with certainty that $220,000,000 is a lot of money.
Recently I was with a group of associates and we met with an owner of a Major League Baseball team. He spoke to us for over an hour on the positives and negatives of owning a MLB franchise. One of the many things that stuck out from the meeting was that $220,000,000 is spent annually on player salaries and that he:
CAN’T CONTROL THE OUTCOME or PERFORMANCE OF THE GAME.
A dying man came to a doctor and asked the doctor if he could perform surgery on him. The doctor said he would but then went on to tell the man that there was a very high chance that the man would not live through the operation.
The man looked perplexed and concerned and said, “There has to be someone that can help me. I have all the money in the world.” But money wasn’t the solution to his problem.
The error that this man made was that he had leaned his ladder against the wrong wall in life. He had misdirected his energy and interests where he could have spent on many other things than just always wanting to make more money.
What’s in your portfolio? Do you have real assets or are they artificial assets?
Artificial assets are investments that we buy because someone told us to buy them, or because they are the new exciting story in the newspaper or magazine. These assets do not fit well in overall and skew what should be a balanced portfolio.
Have you ever thought about abandoning your stocks? Or you have been challenged by owning stocks? The truth is that you will be tested by stocks, and at times you will feel that they have permanently lost their value. You will feel that they are worthless and have let you down. You might ask yourself: “Why am I holding these things? They’re not doing anything for me.” But despite it all, you have to hold onto stocks and never give up on them.
If I told you to walk in a straight line, could you do it? I hope you could. Now, what if I blindfolded you and then told you to walk in a straight line, could you do that? You might say yes like most people would, but it is not that simple. Watch this video to see why: