Reducing Investment Stress

Planning your finances and choosing investments can be stressful especially when markets are volatile. But it can be downright scary when like in 2008 they enter free-fall.  Many people have decided that the stress (and chance of loss) just  isn’t worth it and so they have chosen to stay out of the market altogether.  Unfortunately, that means that by the time they finally decide to return to the market it will probably be nearing another top and they will get hit with major losses once again.

StressThis is not just a symptom of the perversity of human nature. It is also the nature of markets because as the market goes up it draws in more people who had been sitting on the sidelines but eventually there are no more people with money on the sidelines so as the last 10% of buyers (the most reluctant) enters the market it begins to top and finally there are no new buyers left and so the market begins crashing.  As the old saying goes, “when the bag boy at the supermarket is talking about retiring on his stock market portfolio it is time to get out of the market.”

Today Chris Ciovacco the Chief Investment Officer for Ciovacco Capital Management, LLC (CCM) looks at reducing investment stress.  ~Tim McMahon, editor

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Deciding Who to Trust With Your Money

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Almost everything we do in life requires that we exhibit some form of trust. When we go to the grocery store we are trusting that the food is wholesome and the package contains what is says it does. When we go to the gas station we are trusting that the pump is dispensing gasoline and not water.  When we choose an investment adviser, a doctor or a lawyer we have to exhibit even more trust because we often don’t even know what we don’t know. So choosing an untrustworthy individual could prove disastrous to our health or wealth.

In the chart to the right we see the progression from the types of recommendations we trust most to those of lesser trust. The scale is from zero to seven, with seven representing the most trust. Personal recommendations from friends, family and colleagues rates a 6 ¾ on the trust scale while a celebrity recommendation only rates a three on the trust scale.

In today’s article Dennis Miller looks at trust and deciding who to trust with your future. ~Tim McMahon, editor

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The Real Toll Car Depreciation Takes On Your Net Worth.

Car Depreciation

Getting the Most Value from Your “Geriatric Cruiser” By Dennis Miller For many a car lover, retiring rich requires the end of a lifelong love affair. I empathize with them all; I’ve had my own romance over the last 50-plus years. Cars have a … [Continue reading]

Are Annuities for You? Plus 9 Buying Tips


9 Need-to-Know Tips for Buying Annuities… And Knowing When They’re Not For You You're probably something of an expert in your own field—and that field probably isn't insurance or annuities. How, then, can you work through the minefield of clauses, … [Continue reading]

Give Your Kids or Grandkids a Financial Boost

Roth IRA for Child

Summer is  a great time to teach your children about saving money for retirement and an interesting way to do it is by setting up a Roth IRA for them. Remember a Roth IRA is slightly different than a standard IRA. In a standard IRA you contribute … [Continue reading]

Key Facts About Your Family Insurance Plan


Every family needs several different types of insurance. Some offer protection for the near term, and some for the long term. Both types are important for protecting your family's financial future. Make sure your family insurance plans are up to date … [Continue reading]

Why We Lied to Our Kids about Their Inheritance


How to Preserve Family Wealth and Provide Financial Benefits to Your Children Without Spoiling Them: A Lifetime Project The finest inheritance you can give to a child is to allow it to make its own way, completely on its own feet. – Isadora … [Continue reading]

Retirement Guard Duty 101

Retirement 101

By Dennis Miller I was just a kid—barely wet behind the ears. At two minutes before midnight, the sergeant of the guard and I marched onto the runway tarmac. Following protocol, I formally relieved the previous guard of his post. This was … [Continue reading]