Steve's Investing Insights
When’s the last time someone tried to talk you into chasing a “hot” Treasury bond run — NOW, before it’s too late!
Probably never, right?
Most of us recognize that’s not what fixed income investing is for. Bonds create stability; stocks and alternatives are where the excitement is at.
And yet, I often see people forgetting this timeless truth, or at least investing as if they have. Plus, to further complicate things, not all bonds are created equal. This can trick you into thinking you’re playing it safe …
Following are 6 best practices for fixed income investing across all kinds of markets, whether rates are rising, falling, or in a holding pattern.
Retirement isn’t the only reason to set aside current income for future spending. But since it’s usually the elephant in the financial planning room, it’s worth a Timeless Tip of its own.
Following are 6 ways to leverage lifelong financial planning, so you can retire on your own terms and on your own timeline.
Play It Again, Steve – Timeless Financial Tips #6: Aligning Your Investments with Your Investment Time Horizon
I’ve spent my entire career railing against the dangers of market-timing—i.e., dodging in and out of markets based on current conditions. But there is a time when “timing” of a different sort matters. I’m talking about your investment time horizons.
Today, let’s look at how to use your personal time horizons to successfully separate today’s spending from tomorrow’s future wealth.
If I could, I would grant amazing investment returns to every investor across every market. Unfortunately, that’s just not how it works. In real life, we must aim toward our financial ideals, knowing we won’t hit the bullseye every time.
That’s why I recommend evidence-based investing—or investing according to our best understanding of how markets have actually delivered available returns over time, versus how we wish they would. Our “best understanding” may still be imperfect, but it sure beats ignoring reality entirely.
Let’s look at why evidence-based investing based luck-based investing…
There are countless external forces influencing your investment outcomes: taxes, market mood swings, breaking news, etc., etc. Today, let’s look inward, to an equally important influence: your own financial behavioural biases.
When we make snap financial decisions that “feel” right but are rationally wrong, we tend to sabotage our own best interests. By recognizing these reactions as they occur, you’re more likely to stop them from ruining your financial resolve, which in turn improves your odds for better outcomes.
Let’s explore some behavioural finance examples that you’ll want to prepare for…
I would be remiss if I didn’t dedicate at least one post in my “Play It Again, Steve” series to everyone’s least favourite, but still significant topic: taxes.
It’s a good thing there’s no tax on writing about tax planning; if there were, I would surely owe a lot.
Here are six timeless techniques for reducing your lifetime tax load.