How much money do you need to be wealthy? According to a poll conducted by Schwab last year, it's about $2.3 million. Unsurprisingly, that number varies depending on the age of the respondent. Gen Z-ers think $1.5 million is wealthy. Millennials think it's $2M, and Gen X and Boomers think it's up over $2.5 million. Interesting that all those numbers are pretty solid anchor points: one-and-a-half, two, two-and-a-half...psychologically speaking, it feels like the survey respondents just picked a random number out of thin air. The pre-k demographic wasn't surveyed, but one can assume their response would be along the lines of "one thousand thousand million hundred thousand and nine". Our answer: it depends.
It’s beach renourishment time again! The dredges and pipes and bulldozers are all hard at work this offseason fighting with mother nature to try and keep those free-spirited sand grains in one place. Or at least temporarily reset them, I suppose. The more cynical among us might argue that it’s a bit of a losing battle...but man does that new beach look good.
From time to time, it’s a good idea to give your portfolio a little renourishment as well. We’re not talking about selling everything and starting over - after all, you don’t scrape the beach away down to bedrock and then rebuild it. You just need to move some things around a little bit.
There are all kinds of pithy sayings out there about how to renourish your portfolio: “cut your losers and let your winners run”, “if you liked it before, you should like it even more now that it’s cheaper”, etc. Gag. All you really need to do is a simple rebalance.
Hindsight is 20/20, as they say. Unfortunately, since my benevolent overlords editors here at Beachcomber have these things called “deadlines”, there is absolutely zero hindsight available for this first Rogue Waves of 2020, as it is, in fact, still 2019 as I write this. Which must mean it’s Magic 8-Ball time!
What’s that? You think we meant to say “crystal ball”? Ah, yes, that is to be expected given all the punny ways you can put “vision” and “2020” together for economic forecasting. But from time to time we like to refrain from beating a dead horse. And also, economic forecasts are useless.
‘Tis the season for reflection and giving thanks, so here are three things in the investment world we are thankful for:
In the midst of our holiday travel this past weekend, we happened to tune in to some financial talk radio station, and this commercial came on - an ad for something that provided outsourced small business accounting. It was a pretty classic ad format that tries to induce a fear response:
Sound familiar? Well, this one went on to add “whatever you do, don’t try to do it yourself.”
In response, and in the spirit of Thanksgiving, let us be the first to say: get stuffed, radio commercial man. Of course you can do it yourself. In fact, we’re willing to make a blanket statement that if something is being advertised - especially on the radio - you either don’t need it or absolutely can do it yourself.
Fare thee well, 2019! It’s that time of year when we’re inclined to look back on the year that was and reflect on how to make the next year even better - and yes, you can do that with personal finance as well. So here’s a look back at everything Rogue Waves sent your way in 2019:
Too Soon to Start Investing? Financial Experts Weigh In.
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