The answer to the question of whether long-term investing is dead or alive comes down to my favorite three letters in the alphabet: Y.O.U. When I speak with investors, most of our conversation is about what’s going on at that moment in their lives: Driving to their second home, getting ready for an exercise class, recovering from hip, knee or shoulder surgery, running to a meeting, running (walking) to rehab, or winding down from a busy work trip or a European tour. With so much attention today given to robo-advisors, financial planning and one stop investing, it’s hard to know which way … [Read more...]
Dead or Alive? The Future of Long-Term Investing: Part III
“If the phone doesn’t ring it’s me” -- Jimmy Buffett It’s funny how time heals temporary temptations and laps of reason. I wrote the piece below on October 16, 2014. Then the Dow was down from a recent peak and investors were scared. But those who followed their long-term investment plan and didn't panic, made it through. Yesterday the Dow closed at 26,157.16. Investors who panicked and sold missed all that. Tomorrow markets could drop again, but if you prepare yourself with a diversified, income focused portfolio and the determination to stick to an investment plan that avoids risk whenever … [Read more...]
Dead or Alive? The Future of Long-Term Investing: Part II
Ask anyone if they’re a long-term investor and nine out of ten will tell you they are most definitely long-term investors. That is, unless something crazy happens to the market. It’s like the profile pieces you read about someone’s workout and eating regimen. Every minute of the day is carefully planned, and it seems every person profiled sticks to salads topped with salmon and the occasional piece of dark chocolate. In the real-world, life gets in the way, and it gets messy. OK, maybe it’s doable if you don’t have kids, or a job, or grandchildren, or any other fabric of life that makes it … [Read more...]
Dead or Alive? The Future of Long-Term Investing
Is long-term investing dead? You would think so reading even my favored Wall Street Journal as it beats the drum for the future robo-advisors—a model that makes decisions based on an algorithm and human input (a phone rep fresh out of college) to determine your financial future. Sounds good on paper. We’ll see how well they do when markets crater and the phone lines light up like a Christmas tree. It’s happened twice already this century, and that’s when it matters most. Everyone knows that long-term investment success is hard. Maybe not everyone. I’m being too generous. But listen, if … [Read more...]