investments

I first wrote this 3 ½ years ago and believe it is an excellent reminder that, as investors, we are owners of the companies we buy shares in, even if indirectly through mutual funds. I also updated it at the end to show how Wally’s wisdom played out…so far.

My Great-Grandma Tootsie was born in 1880, just 15 years after the end of the Civil War! She lived to be 98 and died when I was 14 so I not only met her but I knew her and remember her well. On the day she died, she picked up some of her younger, 80-something year-old friends in her Studebaker and drove them to lunch.

There’s a scene in the 2nd season of HBO Max’s White Lotus where the English character, Jack, claims “We’re living in the best time in the history of the world.

The U.S. stock market has been quite volatile this year so far – mostly down – as large company stocks have declined over 12% and small stocks have declined even more at over 20%. This is far from unusual and here are 5 data points that, hopefully, ease your mind about the future.

I recently spoke to a University of Kentucky class about financial planning and investing, as I have each semester for the last several years. The class has evolved some since those first couple of semesters to include more business majors than before. Their questions, however, haven’t really changed that much. Here is what I’ve found they’re most interested in discussing:

My Great-Grandma Tootsie was born in 1880, 15 years after the end of the Civil War! She lived to be 98 and died when I was 14 so I not only met her but I knew her and remember her well.

Other than improving my golf handicap, a Sisyphus struggle if there ever was one, traveling overseas again is what I yearn to do most. But until the pandemic ebbs enough so there’s some level of certainty in hopping an international flight, I’m staying right here.

You’ve undoubtedly heard the term, mutual fund, but is it one of those terms you’ve heard so much that you’re afraid to ask what it actually is? Almost all investments within retirement accounts – 401(k)s, 403(b)s, etc. – are mutual funds so you own one or more of them already.

Assuming imitation is indeed the sincerest form of flattery, consider this blog post a bit of puffery for J.P. Morgan’s recent thoughts on this subject that borrows heavily from the data in their 2020 Retirement Confidence Survey.

Okay, not evil, I was embellishing to get your attention. They are, however, misleading, offer a false sense of security and, not unlike fire extinguishers and bow ties, are to be used only in a dire emergency.