Reader case study: Stock market shy

Reader case study: Stock market shy

I’m pleased to present our first reader case study on this blog. This is where I encourage you, the readers,to write in with your situation that you want looked at.

I do my best to answer your questions and provide recommendations for your situation. I also encourage you all to post your thoughts in the comments sections to help out our subject.

Today, we have Jim (not his real name) wanting to know what he should do next in order to achieve his goals of marriage, kids and retirement before 60 […..]

Deciding the "pay off mortgage or invest" debate

Deciding the "pay off mortgage or invest" debate

Lucky you, three posts this week.

I was invited to do a guest post at the ESI Money blog where I discuss the decision to pay off the mortgage or invest. Check out the comments as well for more thoughts on the matter.

While here, check out the ESI Money millionaire series of interviews. If you want to increase your net worth there is no better way than to learn from those who have already done it.

Have a great weekend. 

Decision making part 1:How we make decisions

Decision making part 1:How we make decisions

It seems nowadays we are inundated with options. Hundreds of TV channels, online clothing stores and many investment options. Even once we have finally chosen on a mortgage provider for example, then we have another set of decisions. Do we fix? Do we float? Both? Revolving credit? Interest only? Decisions within the decision if you will. This may seem like a good thing on the surface. More options mean more competition for our attention, which should result in a greater quality of product or service at a lower price.

However, the end result can make us tired of thinking and analysing, and potentially making a sub par decision. Or no decision at all

Beginners guide to investing part 14:Staying the course

Beginners guide to investing part 14:Staying the course

With the rapid rise of smartphones and the internet, we are inundated with information on a daily basis. This is both a blessing and a curse.

Readily accessible information is fantastic to discover new information that will improve our lives. The problem is that we are easily distracted. I am anyway. I’m sure I’m not the only one? Echo, echo, echo.

These distractions take us away from the valuable information we should be paying attention to and […..]

Beginners guide to investing part 12:Running the numbers

Beginners guide to investing part 12:Running the numbers

Whether you are a buy and hold investor, or a buy and sell investor you will still be interested in reviewing your stocks. It is not as simple as it first appears.

We will often receive an annual report from our stock broker or online provider of how your stocks have done that year. 5%, 9%, 2%, -5% and so on. So, if our stocks over 10 years have returned 70% in total, that is 7% per annum right? WRONG. […..]

Beginners guide to investing part 10:Timing the market

Beginners guide to investing part 10:Timing the market

Markets go up, down and sideways. Why, for how long, and when, is the big mystery. No one knows. It’s easy to say after the fact, but knowing the trigger for market changes beforehand is anyone’s guess. Strategies of trying to time the market are often […..]

Beginners guide to investing part 9:How to manage our investments

Beginners guide to investing part 9:How to manage our investments

If we are picking individual stocks then we must decide whether to pick our own stocks or have an investment manager/adviser pick them on our behalf.

self-managed portfolio has the benefit of allowing flexibility, in the sense that we get to choose every company we invest in. We also have significant cost savings, due to[…..]

Beginners guide to investing part 8:How to construct an investment portfolio

Beginners guide to investing part 8:How to construct an investment portfolio

Every investor will get things wrong. Not just once either but frequently. Heck, even full time professional investors consider 60% success rate as very good. This means that there are many professional investors hitting 50% or less. That is just as well as flipping a coin. The key to a good portfolio is […..]

Beginners guide to investing part 7:Types of stocks

Beginners guide to investing part 7:Types of stocks

So far in this series we have covered the different terminology used in investing, dispelled some common investing myths, different types of investments, how to approach the sharemarket, how to reduce our exposure to risk, and what impact our own behaviours have on our investments. Now we can discuss the different types of stocks available to invest in […..]

Beginners guide to investing part 5:Managing risk in the sharemarket

Beginners guide to investing part 5:Managing risk in the sharemarket

There are some things we can’t control when investing in the sharemarket. We can’t control interest rates, inflation, exchange rates, company bankruptcies, and so on. This is why many stay away from shares. The unknown. This is a shame, because returns from shares over the long term are arguably better than other accessible investments.

How can we reduce the risk of the unknown? […..]