Barrett's 2 Cents

I am a CERTIFIED FINANCIAL PLANNER™ professional. I write personal financial advice for baby boomers without kids. Some people say I help simplify their finances. Other people say I help them enjoy more life experiences. Read on and decide for yourself.

Category: Investing (page 1 of 6)

The Vitamin C of Finance Lessons

A longtime client (Carol) shared her concern that it felt like the market was due for a big drop. I smiled and told her that she already knew exactly what I was going to say. Her reply was “tell me again.” It’s the one investment topic an investor can discuss, understand, process, and still wish to revisit regularly. It’s the vitamin C of investing.

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The Transformed Investor

My partner noticed that some turbulence on a recent flight was stressing me out (it was). Even though I know the odds of this actually leading to a crash are pretty close to zero, it still makes me uncomfortable every time. So, he said “just think of it as waves in the ocean that you can’t see.” I supposed Eddie, who flies often for work, is a transformed flyer. He’s always relaxed on a plane, and only gets upset if the turbulence causes his coffee to spill.  It reminded me of my friend and client, Dave, who refers to himself as a transformed investor.

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Ditching Our Behavioral Biases

Any of these sound familiar?

  • I’m an above-average driver.
  • I knew that was going to happen.
  • I feel safer driving a car than being on a plane.
  • My son / daughter is one of the smartest in their class.
  • My dog is very well behaved.

If you’ve said (or had a friend say) any of those, it’s possible that you’re 100% correct…or you might be exhibiting some type of biased behavior. You may think your furry friend is the best-behaved creature on your street. But your neighbor might think otherwise.

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Expand Beyond Goals

Terry, a retired older friend of mine, inherited a large sum of money from his dad. Since Terry has already achieved his fundamental goal of having financial freedom and doesn’t need the money to support his lifestyle, he is left the portfolio on autopilot and hasn’t asked any questions about the underlying costs, risk, allocation, etc. What he shared next reminded me about why setting goals is a nice start, but may not lead to a great finish.

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Pride In Your Investments

There’s a new investment that is likely to generate excitement in my community. It’s the first exchange traded fund (ETF) that invests in companies demonstrating the highest level of support for their LGBT employees. The fund is called the InsightShares LGBT Employment Equality ETF and its ticker is PRID. But before you leap to invest, there are a few things to consider.

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