Today's Hack

When it comes to our money there are several ways, we tend to get greedy. So on today’s episode, we are going to discuss how to recognize the voice of greed and how we can fight against it.

The market has been doing great the past few years. So you probably think it’s a good time to invest and be aggressive. But that’s also likely the reason people have been extra stressed about the most recent downturn. On today’s episode, we’ll discuss 5 ways you may be letting greed get the better of you and how it could be impacting your retirement plan.

Greed When Investing in the Market 

It’s human nature to want to invest when the market is doing well and going up. But then you are more susceptible to turns in the market. If you’re going to get greedy, get greedy at the bottom of the market. Don’t look at the emotional side of investing and understand what you’re comfortable with. When investing you want to look at the long-term returns and what you’re able to tolerate.

Following What You Hear

Another way investors tend to let greed get the better of them is when it comes to what we hear in the media and between our social circles. When you hear about a new investment you may be tempted to jump right into it. By the time you hear about the hottest new investment you probably are already too late in the curve.

Keeping Up with the Joneses

We all tend to fall into the trap of keeping up with the Joneses. Maybe your neighbor or friend seems to have more money saved than you for retirement. But that is a dangerous game. We don’t want to worry about everyone else. How much you have saved doesn’t need to be compared to anyone else.

Getting Greedy with Your Emergency Fund 

When it comes to your emergency fund you don’t want to gamble. There are two sides to it: You don’t want your money collecting dust but you also want easily accessible emergency funds. In retirement, your emergency fund is your safety net for big unplanned expenses.

You’re Better Off Doing it Yourself 

Over the last three years, almost anybody could enter the market and do well. But the market isn’t going to always be like that. It’s when things get scary that you need an advisor. Getting greedy and not wanting to pay an advisor can hurt you in the long run. Advisors help you manage your plan and stay motivated throughout the ups and downs.

Listen to the entire episode or skip ahead using the timestamps below. 

[0:15] Voice of greed

[2:07] Being aggressive

[5:57] Following what you hear

[7:15] Keeping up with the Jones’s

[10:05] Emergency fund in the bank

[12:48] Doing it yourself

A Quotable Moment:

“If you’re going to get greedy, get greedy at the bottom.”

-Phil Putney

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