This Investing Mistake Cuts Returns In Half
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- Опубліковано 4 лип 2023
- Today, we’re digging into the one mistake that (statistically!) is most likely to thwart your ability to get “average annualized returns of 10% per year.
Tune in to The Money with Katie Show podcast for the full episode: podcasts.apple.com/us/podcast...
Mentioned in the Episode:
How to Build an (Actually) Diversified Portfolio • How to Build an (Actua...
2020 Dalbar report: wealthwatchadvisors.com/wp-co...
J.P. Morgan Asset Management Analysis: am.jpmorgan.com/us/en/asset-m...
This show is a production of Morning Brew and is produced by Henah Velez and me, Katie Gatti Tassin. Devin Emery is our Chief Content Officer. Our video editors are Christie Muldoon, Sebastian Vega, and Nichole Friedman. Additional fact-checking comes from Kate Brandt.
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I’m Katie, a personal finance content creator on a mission to make everyone else as obsessed with their financial health as I am. With small tweaks and just a little more awareness, you can live a richer, happier life. I started writing about money in 2018.
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Why are you no longer uploading the full podcasts to UA-cam? I really enjoyed watching the content ☺️
As Ric Edelman would say: "Don't just do something, stand there!"
Hi! Could you explain what “dollar cost averaging out” looks like? This is something you mentioned in your recent roundup on pivoting brokerage savings towards a home purchase
Sure! Dollar cost averaging *in* to the market is like setting up the consistent contributions over time (i.e., $100 every 2 weeks) so that you're "averaging" the value of your stocks whether they go up or down so you're not dealing with HUGE swings in the market when they happen. Dollar cost averaging *out* would be the same approach; taking the money out on a regular cadence so the value is averaged rather than taking it all out at once right before the market shoots up or taking it all out right during a downturn because you immediately need it. I hope this helps!
As a decades-long amateur investor, I say your advice is spot on! Now in retirement, I've bought three new cars, done three major home remodelings and gifted many dollars and still see my funds grow. Sacrificing now in your 20s, 30s, 40s will pay big time when older age inevitably comes. If you die before retirement you can help loved ones and charities remember your generosity.
Love this - thank you for sharing and congratulations on all you've been able to accomplish! I'm so glad this advice has helped your own growth.
Buy wisely, hold on and don't peek.
I made a stupid mistake to pull a portion out in June 2022 because Michael Burry was saying the stock market was going to go down more. I was thinking I could beat the market by buying back in when it bottomed.
And now it's almost back to the 2021 high. Whoops.
The saving grace is that the portion I pulled out was a small part of our portfolio. But as a frugal person, it still hurts to buy back in and take the loss.
Timing the market is almost impossible.
I invest in an "aggressive" 100% stock portfolio, but here's the thing, it's two total market funds. A total US stock market fund and a total international stock market fund.
Do you invest a lot into crypto and see it as extremely profitable?
I do not! I have a lot of hesitancy around crypto (which we're going to do an episode about later this year) - I'm a stocks 'n bonds girly
@@MoneywithKatieha yeah I tend to stay clear since I’ve heard to many stories about bad ones. Also I think your tik tok is hacked lol
@@malachibrand6090 Ah what are you seeing?! It looks normal to me on TT
@@MoneywithKatie Never mind! lol when I followed you another account that posts the same exact things with the same name followed me right after and I now realized it was not the same account. They were messaging me about a crypto scam but I knew it def wasn't you. My bad!
@@malachibrand6090 No worries! I'm so sorry they're doing that. If you have the handle, we can report them to TikTok!
3:35 what about folks in 40s?
Just keep buying. No matter what's happening.
Just keep investing in low cost total market index funds.
Buy low, sell in 30 years time