Should You Invest in Gold?
Should You Invest in Gold? For most investors, no. Gold does not produce income, has delivered inconsistent long-term returns, and…
Betting on the Markets Being Wrong – Don’t Take Those Odds
A common refrain in investing is that news and expectations are already "priced in”. I often say this publicly and in individual client meetings. When clients are concerned about changes in the market and want to act on what they are hearing, I remind them that the market is ahead of the media rumblings and that snap financial decisions tend to sabotage positive financial outcomes. So, it is much better to hold firm with your investment strategy, that should be based on a sound financial plan, rather than reactively sell, because those who react are most likely reacting too late. And I’m not just guessing. I’m advising based on my experience and deep understanding of how markets work. The reality is that those who stay disciplined see much better performance than those who try to bet on market mispricing and make changes.
Timeless Financial Tips #1: Repeat After Me: “It’s Already Priced In”
A key concern many investors have at the moment is the impact of Trump's tariffs on goods produced outside the U.S. on the markets. I'm hearing from those wondering if they should sell quickly to protect their wealth; their primary question is: What should I do with my investments? My answer (as it usually is when investors are concerned about the geopolitical impact on the markets): Stick with the plan because, by the time you become concerned, the markets have already pre-adjusted (i.e. it's priced in), so any reaction you take is too late.
Real Life Investment Strategies #6: Beware the Risk of the Cult Stock Roller Coaster
The Pitfalls of Fanatically Following the Stock Hype It seems to me that the central tenant of the financial media (group-think central) is to glorify stocks or sectors that have experienced recent outsized returns. The hype of cult stocks extends and is amplified by social media channels and its various influencers. Ask any reputable financial economist about these past monumental gains and they will indicate that “past performance is not indicative of future returns”. Despite the restrained advice of these financial experts, it’s easy to get swept up in the hype surrounding these popular stocks and investment trends. Some choose to surrender to FOMO (fear-of-missing-out) and follow these financial fads. for the chance of scoring a big financial win with a little excitement on the side. While these stocks may seemingly promise rapid growth, there are some obvious (and not-so-obvious) risks of chasing high-flying stocks. It’s important to consider the other option: a more thoughtful, measured investment plan. Maybe not as thrilling, but certainly a better path to reaching your long-term financial goals. Let’s explore some examples of how some stocks can achieve a cult-like following and a take realistic look at how they could play out for some real-life investors.
Real Life Investment Strategies #3: What is the Difference Between a Lifestyle Reserve and an Emergency Fund / Financial Cushion?
Both Emergency Fund and Lifestyle Reserve Planning are Crucial Whether You are Accumulating Wealth or Getting Ready to Retire Having an emergency fund is common advice, whether you are reading this in the financial media or hearing it from a financial advisor. Many people who are later in life and feeling comfortable with their financial situation might disregard this advice, assuming it only applies to those that don’t have as much financial stability. The truth is that an Emergency Fund is something that everyone (even you!) should have. In addition, the added financial security planning of a Lifestyle Reserve should also be part of your financial plan. So, let’s explore exactly what an Emergency Fund is, how a Lifestyle Fund is different, and why both should be in place to ensure long-term financial alternatives and adaptability. Most importantly, I’ll highlight how this applies to Suzie & Trevor Hall (The Accumulators) and Jim & Carol Oates (Almost Ready to be Retirees), so you can see how it can work for you.
Real Life Investment Strategies #2: Debunking Retirement Financial “Rules”
Should You Plan Your Retirement Savings According to the 4% Withdrawal Rate Rule or 70% of Pre-Retirement Income Rule? Whether you’re an accumulator or preparing for retirement, how do you plan for saving AND spending your hard-earned cash in retirement? My Answer: It depends. All those popular retirement spending rules you hear about in the popular press or through your favourite financial guru really should be called guidelines. Augmenting blunt estimates with finer-pointed planning may not be as quickly accomplished. But it’s a far more effective way to plan for how much to save as you accumulate wealth, and how much to spend as you withdraw it. In fact, it’s best to consider retirement spending as being a variable process, versus a one-and-done equation. Which is why it depends. LET’S BEND SOME RULES: THE 4% WITHDRAWAL RATE RULE & THE 70% PRE-RETIREMENT INCOME RULE
Real Life Investment Strategies #1: Will Geopolitics Ruin My Financial Plans?
Timeless financial tips are well and good - but how do they apply to my investment decisions in real life? To address that question, I’m launching Lowrie Financial’s “Real Life Investment Strategies.” Each post in this new series will use case studies to illustrate the choices real people are making, as they contemplate money management concerns in real time. Many have active concerns around geopolitical events and their impact on their financial futures - clear theme emerges: • worrying thoughts about current events, • what the geopolitical climate may mean to your money, and • what investment strategies to avert setbacks for your financial future So, let’s address some of the more worrisome flash points looming large at this time: the world, its politics, and its politicians.
2023 Financial Year in Review | 2024 Investment Market Outlook
You might assume, the more experienced a financial professional is, the more accurate they can be with their year-end forecasts. Personally, I’ve never tried to predict which hot or cold stocks, bonds, sectors, or market sentiments to chase or flee each year. Instead, the more experience I’ve gained, the more firmly I believe in the Timeless Financial Tips I shared throughout 2023. For me, they serve as the best guide for “predicting” what investors should expect in 2024. So, considering everything I’ve learned in 2023 (plus the quarter-century prior), I predict … We cannot possibly predict how 2024 markets will perform. That’s my expert forecast, and I’m sticking to it. I will, however, add one more prediction, about which I am nearly as certain … Over time (think multiple years), capital markets WILL deliver positive returns to those who consistently participate in their expected growth.
Timeless Financial Tips from 2023 As We Turn to 2024
Yet another year has gone by. With 2023 behind us and 2024 on the horizon, it’s important to take stock, set goals, and make plans – keep steadfast in your quest for long-term financial planning and wealth management success. In 2023, I shifted my focus to keep some core financial planning principles at the forefront of your mind. These principles are timeless and are a good touchpoint for whenever your financial resolve starts to soften. Let’s look back at these timeless financial tips from 2023…
Play It Again, Steve – Timeless Financial Tip #8: 6 Enduring Insights for Fixed Income Investing
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.
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