Other Retirement Facts:
Sometimes we do things that just don’t make sense. What kind of uncommon sense is mixed into your financial decision making? On today’s episode of the podcast, Phil responds to some of this uncommon sense with financial advice you’ll want to include in your plan.
To start, we’re seeing quite a dip in cryptocurrency lately. It’s almost a mirror of the dot-com era. A lot of them had a high valuation without viability. The internet landscape is being changed and digital currency may have a place at some point. But are you really willing to deal with this kind of volatility?
We all know that to make money in the market, you’ve got to buy low and sell high. It’s easy to get hyped up or have a fear of missing out. This causes you to buy high and get out when it’s low. When you’re looking at investing, you’ve got to understand risk and volatility. Is the risk situated in a way that you’ll be comfortable with it?
No one wants to pay more in taxes than they have to. How can you be more efficient with your taxes? There’s nothing wrong with not wanting to pay more than your fair share. As with anything, understand the pros and cons of where taxes come in.
Are you diversified? You might think having multiple mutual funds is diversification, when in reality there is a lot of redundancy across those funds. You want to be strategic with your investing. Don’t try to time the market or get caught up in an emotional knee-jerk reaction. An advisor can help keep you focused on your goals. Be sure to have a plan that works for you.
Listen to the entire episode or use the timestamps below to skip ahead.
0:19 – What’s the latest with Phil?
0:57 – Cryptocurrency took a hit.
6:20 – Buy low, sell high.
10:30 – Paying more in taxes than we have to.
13:34 – Keeping costs low.
15:28 – Don’t put all your eggs in one basket.
17:42 – Don’t try to time the market.
A Quotable Moment:
Compare it back to the plan first. Does it fit in? If so, where? Then have that discussion with your advisor.