Investing is not necessary. This statement used to be true back in the mid to late 20th century. People would work for a single company for 40 years, retire at the age of 65, and live quite well financially. Not only did they have Social Security to rely on, but many people also had a nice pension that they earned throughout their working career. However, times have changed. In most industries, pensions are going away. Social security isn´t going away, but its benefits will continue to shrink. The three-legged retirement stool of investing, pensions, and social security is getting weaker. And even though investing didn´t used to be necessary, it…
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The Stock Market is Tanking … Now What?
One of the toughest things in life is to do something that goes against our intuitions. After all, our intuitions help guide us through many important decisions that we make every single day. However, sometimes, our intuitions can be wrong. One of the times that our intuitions are often wrong is when we are investing in the stock market. We may think that we should sell all of our stocks right before the stock market goes on a five-year rally. Or, we may know that a stock is going to double in value, right before the company files for bankruptcy. Again, our intuitions are often completely wrong when it comes to…
