If you’re a parent, you may recall the first time your child used your own words against you. That’s the moment you knew just saying “Because I said so” would no longer get the response you wanted. From that day forward, you would have to use logic to get the preferred behavior from your children. (I’m aware I’ve omitted screaming, threats, bribery, and, in extreme cases, crying.)
Over the years, we’ve repeated on numerous occasions “that time in the stock market is more important than timing the stock market.” One works; the other rarely does. The market's rapid rise over the past ten years has many market observers calling for a bear market, a correction, or X number of years of sideways growth. Other prognosticators believe this is a new era and that artificial intelligence will make companies more profitable, thus lifting stock prices. Like most other predictions, the truth is likely somewhere in between the two extremes.
If you think your name, Social Security number, address, and other identifying information are not available on the so-called dark web, reconsider your position. In fact, if we just assume a lot of our personal information is already available for sale, we can act accordingly.
As I look back at 2024, a few things changed for me. As per my plan with John, I spent less time at the office while John added more tasks to his work portfolio. While I’m still engaged in our financial planning practice, I’ve cut back. Having extra hours each day puts me on the receiving end of a discussion I often initiated with clients over the years. As they (you) approached and entered retirement, I typically asked: “We know what you’re not going to do (i.e., work), but what are you going to do?”
JP Morgan has released it's latest stack of fascinating charts reflecting the current state of the economy and the stock market. We thought we'd share a few of our favorites.
We deal with families, so we understand some of the dynamics between adult children and aging parents. In many households, we know it isn’t easy to talk about money from an intergenerational perspective. In some instances, elderly parents are not likely to want their adult children to know they may not have enough money to last their entire lives. In other instances, adult children may be making (poor) spending decisions because they assume they will be left a bigger inheritance than they’re likely to receive. Suffice it to say that money is a sensitive subject.
It’s staggering when you consider how many people are trying to separate you from your money. Early in the post-Madoff days, I once joked to a colleague at a financial planner’s conference that we should add a fee for our integrity. Imagine the email clients receive at year-end: “I didn’t steal any of your money this year. Attached please find an invoice for my integrity.” Sadly, that gallows humor joke has yet to wear out as the years have passed.
It’s easy to be seduced into going along with the herd when it comes to investments. When the stock market soars, we all get a little more bravado. “There’s nothing like the stock market! It’s so easy to make money! Buy! Buy! Buy!” Similarly, when the stock market is falling, going from downturn to correction to bear, it’s just as easy to switch gears: “The market is falling and is never going to stop! Get me out! Sell! Sell! Sell!” Yes, whiplash is a thing when it comes to investing, but only if you let it be a thing.
I used to teach Economics to evening students. They were mainly adults working full-time jobs and attending college at night. To many of them, the idea of understanding a supply and demand curve, or even a chart of any kind, was terrifying. I always started with the basics, and as we added pieces, I could (almost) literally watch the light bulbs go on. They got it!
When you reach a certain age - and it appears I’ve reached it - you watch your friends age with you to various degrees. Some age remarkably well, while others suffer through serious illnesses. Sadly, some even die. Through it all, I’m constantly reminded of the lessons we share with our clients, who are also aging.