Category Archives: #BrownleeGlobal

Financial Literacy: Saving for Retirement

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“We teach our kids everything in high school: sex education, geography, math, reading, etc. We do not teach them anything about credit cards, or debt, or investing. Then we ask ourselves why we end up in a situation as we are today, which has been highlighted by the pandemic a bit: There’s 100 million people in America that have set nothing aside for their retirement.” Kevin O’Leary

The retirement crisis in America is an ongoing worry for most Americans. As companies have shifted away from offering traditional (defined) pension plans to employees, much of the responsibility in planning for financial life after work now relies heavily on individuals. Unfortunately, the crisis is mostly due to a lack of financial literacy and consumer spending on new shiny things, and as a result, most are struggling to keep up.

A March 2019 Bankrate survey found that more than 1 in 5 working Americans aren’t saving any money for retirement, emergencies or other financial goals. Major barriers as to why respondents said they weren’t saving included not making enough money, financially helping adult children, and large credit card and other personal debt payments.

Financial assistance to adult children

Parents are helping their adult children financially and the majority of those parents say that financially supporting their adult children is hurting their savings for retirement and their financial futures, according to Bankrate. In total, 50 percent of respondents to a Bankrate survey say they have sacrificed or are sacrificing their own retirement savings in order to help their adult children financially.

Living and remaining in the workforce longer

American baby boomers are healthier and are living longer; as a result, they’ll need a bigger nest egg to fund their retirements, especially since the number of employers providing pensions has been steadily shrinking. As some reach retirement age and realize they don’t have enough saved, it’s keeping them in the workforce longer. Workers older than 55 years young filled almost half of all new jobs in 2018 even though they make up less than a quarter of the nation’s labor force, according to an analysis of Labor Department data by The Liscio Report.

“Many seniors are having a hard time making ends meet and find they have to work when they had not planned to.” Dean Baker, cofounder of the Center for Economic and Policy Research.

“Most Americans haven’t made saving [for retirement] a priority”, says Nick Holeman, CFP at Betterment. “Most people don’t like to admit that, but we live in a consumer culture and it can be difficult to turn down the new shiny gadgets.” Saving for retirement is your largest and most important financial goal. Even if it feels very far away, it’s important to start saving early.

Holeman recommends that Americans wanting to retire to take three steps:

  1. Create financial goals and a financial plan. At a minimum, you should have these two financial goals: Create an emergency fund and save for retirement. SoFi calls these “bookend goals”—your primary short-term and primary long-term goal. Your financial plan should consist of small, achievable goals; they’ll help you see your finish line and empower you to stay on track. Start by determining how much you need to retire comfortably.
  2. Come up with a strategy to execute. Selecting an investment strategy depends on your financial goal amount (how much you want to save each month or year) and the time horizon (when you’d like to use that money). Decide how you plan to save that amount.
  3. Get creative. For those struggling to save, consider retiring later or working part-time during retirement. Holeman says there are tons of other options out there, which he refers to as “levers,” like moving to a low-cost state or downsizing your home. Engaging them can help get your retirement savings back on track.

Investing

It has been regularly reported that billionaire investor Warren Buffett made 99% of his current wealth after his 50th birthday.  At an age when most Americans give up hope achieving financial independence, Buffett was just getting started on the capital assets he controls today.  Building wealth could mean financial peace, taking a spur-of-the-moment international travel.

Many older Americans are advised to sell or significantly reduce their stock holdings and frankly, this advice is antiquated, shortsighted and wrong.  Buffett built his incredible level of wealth by continuing to buy stocks despite his advanced age.

References:

  1. https://www.bankrate.com/personal-finance/financial-independence-survey-april-2019/
  2. https://www.bankrate.com/retirement/baby-boomers-unable-to-retire-gig-economy/
  3. https://www.usatoday.com/story/life/allthemoms/2019/04/24/adult-children-robbing-parents-retirement-savings-study-finds/3559812002/
  4. https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/20170718165706/Guide-to-Investing-Intelligently_V5-1.pdf

COVID Vaccine and Return to Normal

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Public health officials say that even after you get vaccinated against COVID-19, you still need to practice the pandemic precautions. That means steering clear of crowds especially indoors, continuing to wear a mask in public, maintaining 6 feet or more of physical distance from people outside your household and frequently washing your hands.

It takes time for the vaccine’s effectiveness to build up after getting a shot. Effectiveness is defined as not getting sick with COVID-19.

The objective of these first-generation vaccine candidates wasn’t to prevent COVID-19 transmission entirely. Instead, researchers were hoping the vaccines would prevent severe COVID-19 and deaths, and that’s exactly what Phase 3 trials showed. The Pfizer/BioNTech, Moderna, and AstraZeneca/Oxford vaccines can all prevent severe COVID-19 with varying degrees of efficacy.

People immunized against COVID-19 will have a high chance of avoiding a severe case of the illness after an actual infection, but infection with the novel coronavirus would be possible even after a person acquires immunity.

A new study from Israel indicates that the immunity developed from the Pfizer/BioNTech vaccine is so strong that it might prevent COVID-19 transmission. Researchers from the Sheba Medical Centre in Tel Aviv studied the immune response in 102 hospital staff members who received both Pfizer/BioNTech vaccine shots. They found that 100 people developed up to 20 times more neutralizing antibodies within a week of the second dose than COVID-19 survivors who went through severe COVID-19 cases. These higher levels of antibodies that would neutralize the actual virus upon actual encounter are believed to also prevent transmission.  With the higher the number of antibodies, the harder it would be for the virus to infect cells and replicate enough for vaccinated people to become infected.

https://twitter.com/RolandBakerIII/status/1351934025120714753?s=20

In order to put this pandemic in the rearview mirror, a large percentage of the population needs to either be vaccinated or gain immunity via an infection with the virus (a much riskier route that would include many more deaths).

When a large portion of the population has immunity to the virus because of this sort of “herd immunity,” it’s unlikely to keep spreading. Even people who haven’t been vaccinated (such as very young babies and those with compromised immune systems) are protected once this level of immunity in a population is achieved, because the illness has little opportunity to spread within the community — most people who run into the virus in this scenario are immune.

What is herd immunity?

Herd immunity (or community immunity) occurs when a high percentage of the community is immune to a disease (through vaccination and/or prior illness), making the spread of this disease from person to person unlikely. Even individuals not vaccinated (such as newborns and the immunocompromised) are offered some protection because the disease has little opportunity to spread within the community.

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Herd immunity depends on the contagiousness of the disease. Diseases that spread easily, such as measles, require a higher number of immune individuals in a community to reach herd immunity. Herd immunity protects the most vulnerable members of the population.

COVID-19 is a very contagious disease.

A large percentage of the population will need to be immune against COVID (through infection or vaccination) before herd immunity will be achieved. It is not known when that will happen, but it will depend on how many people develop immunity after COVID-19 infection, how soon a COVID-19 vaccine is widely available to the general public, and how many people get vaccinated. Throughout this time period until herd immunity is achieved, it is very important to continue to wear masks in public, to wash or sanitize your hands, and to maintain social distance to slow the spread of COVID-19.

References:

  1. https://www.npr.org/sections/health-shots/2021/01/12/956051995/why-you-should-still-wear-a-mask-and-avoid-crowds-after-getting-the-covid-19-vac
  2. https://www.nejm.org/doi/full/10.1056/NEJMoa2034577
  3. https://www.msn.com/en-us/health/medical/study-says-pfizer-vaccine-immunity-is-so-strong-it-might-prevent-covid-19-transmission/ar-BB1cTAkA?ocid=uxbndlbing
  4. https://apic.org/monthly_alerts/herd-immunity/

Martin Luther King (MLK) Day of Action

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“The time is always right to do what is right.” Dr. Martin Luther King, Jr.

With respect towards Martin Luther King Day, this is a terrific time to think of his words and vision, and try to employ them in our daily lives at home and at work.

“Let this holiday be a day of reflection, a day of teaching non-violent philosophy and strategy, a day of getting involved in non-violent action for social and economic progress”, wrote Coretta Scott King in The Washington Post in 1983.

The day is more than a day of celebration of the civil rights leader.

“Too many Americans would rather celebrate than follow Dr. King”, as Marian Wright Edelman, President, Children’s Defense Fund, commented. “Many celebrate Dr. King the orator, but ignore his words about the need for reordering the misguided values and national investment priorities he believed are the seeds of America’s downfall.”

“We must learn to live together as brothers or perish together as fools.” Dr. Martin Luther King, Jr.

“Dr. King’s greatness lay in his willingness to struggle to hear and see the truth; to not give into fear, uncertainty and despair; to continue to grow and to never lose hope, despite every discouragement from his government and even his closest friends and advisers” Edelman advises.

Dr. Martin Luther King, Jr., in his last Sunday sermon at the National Cathedral in Washington, D.C. in 1968, said:

“It may well be that we will have to repent in this generation. Not merely for the vitriolic words and the violent actions of the bad people, but for the appalling silence and indifference of the good people who sit around and say, ‘Wait on time.’ Somewhere we must come to see that human progress never rolls in on the wheels of inevitability. It comes through the tireless efforts and the persistent work of dedicated individuals who are willing to be co-workers with God. And without this hard work, time itself becomes an ally of the primitive forces of social stagnation. So we must help time and realize that the time is always ripe to do right.” Dr. Martin Luther King, Jr.

The “time is ripe right to do what is right” and reject the ugliness, bitterness and greed that have permeated too much of our political discourse. For example, the two U.S. Senate runoff races in Georgia that determined control of the U.S. Senate laid bare the depths of despicableness and hatefulness both conservative and liberal operatives would venture to win those seats for their respective side. The political discourse over linear and social media forced many Georgians to silence their media and not answer their phones.

” We may have all come on different ships, but we’re in the same boat now.” Dr. Martin Luther King, Jr.

Moving forward

We need to move forward and not backward and relearn for ourselves and teach our children we can disagree strongly without disagreeing wrongly. “We have a voice, and we are powerful”, said Jennifer Lockwood-Shabat, President and CEO, Washington Area Women’s Foundation. “It’s how we choose to harness our voice and power in the days, weeks, months, and years ahead that matters. We cannot be overwhelmed by the tasks at hand. There are actions each of us can take in our daily lives to make a difference.” Lockwood-Shabat states that you can:

  • “Make an effort to understand opinions and beliefs that are different from yours. Read books and articles that explore different opinions and perspectives. Seek out media outlets and journalists that you may not necessarily follow. Have meaningful conversations with the friend, neighbor, or colleague with whom you may disagree.”
  • “Get involved locally. Feel passionate about an issue in your community? Get involved and learn more. Find the organization leading the charge on the issue and get connected. Attend local government meetings or hearings on the issue you care about. Volunteer.”
  • “Become politically active at the local level. Regardless of your political affiliation, become informed about races happening in your own backyard. Learn more about the candidates and their positions. Attend events and voice your opinion and concerns. Support the development of the next generation of political leadership. Consider running for office.”
  • “Use your voice. Speak up when you see a wrong that needs to be righted, whether it’s in your neighborhood, your school or your workplace. Write your local political leaders. Write a letter to the editor or an op-ed.”

MLK Day brings with it a sense of optimism and hope, whether that means you resolve to help others, spend more time taking care of yourself, learn something new. You can be more resolved and committed to fighting for a fairer and more just and equitable community for all Americans.

“Whatever your life’s work is, do it well. A man should do his job so well that the living, the dead, and the unborn could do it no better.” Dr. Martin Luther King, Jr.

It maybe unrealistic to burden you with the country’s problems, but if you can do something positive for someone or within your community, it’s a start.

The hope is that Dr. King’s words are as powerful today as when he first said them and that they will inspire positive change and development in the world. For example, he exclaimed, “Lightning makes no sound until it strikes.”

What he meant was that “Apathy cannot be tolerated by an individual, a leader or an organization. If you see something happening, don’t wait for the negative ramifications to occur. Respond to the issue and act. If nothing is said or done, then silence connotes complicity — and that’s what people remember.”

References:

  1. https://www.cnbc.com/amp/2021/01/18/martin-luther-king-jr-life-leadership-lessons.html?__twitter_impression=true
  2. https://www.huffpost.com/entry/the-time-is-always-right_b_9592976
  3. https://thewomensfoundation.org/2017/time-always-right-whats-right/
  4. https://www.wsj.com/livecoverage/trump-biden-election-day-2020/card/csOMnlXFihSgJ256gUwI

Social Security Retirement Benefits

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Achieving the dream of a secure, comfortable retirement is much easier when you plan your finances.

Social Security is part of the retirement plan for almost every American worker. It is considered to be one of the three “legs” of retirement finances (retirement plans and savings being the other two), and for some it may be the only source of retirement income. It provides replacement income for qualified retirees and their families.

Planning is the key to creating your best retirement. You’ll need to plan, save and invest for decades to achieve your retirement goals. While many factors affect retirement planning, it is important that you to understand what Social Security can mean to you and your family’s financial future.

As you make your financial and retirement plan, knowing the approximate amount you will receive in Social Security benefits can help you determine how much other retirement income you’ll need to reach your goals.

Social Security replaces a percentage of a worker’s pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits.

How Social Security system works

The theory behind the concept of Social Security was that taxes assessed on the wages, up to a statutory limit, of those who are gainfully employed will be used to pay the benefits to those who have left the work force due to old age. This, when you work, you pay taxes into Social Security. Social Security Admission (SSA) use the tax money to pay benefits to:

  • People who have already retired.
  • People who are disabled.
  • Survivors of workers who have died.
  • Dependents of beneficiaries.

The money you pay in taxes isn’t held in a personal account for you to use when you get benefits. SSA uses your taxes to pay people who are getting benefits right now. Any unused money goes to a Social Security trust fund that pays monthly benefits to you and your family when you start receiving retirement benefits.

You can work while you receive Social Security retirement or survivors benefits. When you do, it could mean a higher benefit for you and your family. But, if you’re younger than full retirement age, and earn more than certain amounts, your benefits will be reduced. The amount that your benefits are reduced, however, isn’t truly lost.

Your benefit will increase at your full retirement age to account for benefits withheld due to earlier earnings. (Spouses and survivors, who receive benefits because they have minor or disabled children in their care, don’t receive increased benefits at full retirement age if benefits were withheld because of work.)

Each year, Social Security Admission (SSA) reviews the records of all Social Security beneficiaries who have wages reported for the previous year. If your latest year of earnings is one of your highest years, they recalculate your benefit and pay you any increase you are due. The increase is retroactive to January of the year after you earned the money.

When you begin receiving Social Security retirement benefits, you are considered retired for SSA purposes. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits.

If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.

If you are under full retirement age for the entire year, SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2020, that limit is $18,240.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2020, this limit on your earnings is $48,600. They only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.

When you reach full retirement age:

  • Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.
  • SSA will recalculate your benefit amount to give you credit for the months we reduced or withheld benefits due to your excess earnings.

To Receive Benefits

The age you begin collecting your retirement benefit affects how much you will receive. There are three important things to know about age when thinking about when to start your benefits.

  • Full Retirement Age – Full retirement age is the age when you will be able to collect your full retirement benefit amount. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. You can find your full retirement age by birth year in the full retirement age chart.
  • Early Retirement Age – You can get Social Security retirement benefits as early as age 62. However, your benefit is reduced if you start receiving benefits before your full retirement age. Understand how claiming retirement benefits early will affect your benefit amount.
  • Delayed Retirement Age – When you delay collecting benefits beyond your full retirement age, the amount of your retirement benefit will continue to increase up until age 70. There is no incentive to delay claiming after age 70.

In 2020, if you’re under full retirement age, the annual earnings limit is $18,240. If you will reach full retirement age in 2020, the limit on your earnings for the months before full retirement age is $48,600.

Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.

Let’s look at a few examples. You are receiving Social Security retirement benefits every month in 2020 and you:

  • Are under full retirement age all year. You are entitled to $800 a month in benefits. ($9,600 for the year)
    You work and earn $28,240 ($10,000 over the $18,240 limit) during the year. Your Social Security benefits would be reduced by $5,000 ($1 for every $2 you earned over the limit). You would receive $4,600 of your $9,600 in benefits for the year. ($9,600 – $5,000 = $4,600)
  • Reach full retirement age in August 2020. You are entitled to $800 per month in benefits. ($9,600 for the year)
    You work and earn $63,000 during the year, with $50,718 of it in the 7 months from January through July. ($2,118 over the $48,600 limit)
  • Your Social Security benefits would be reduced through July by $706 ($1 for every $3 you earned over the limit). You would still receive $4,894 out of your $5,600 benefits for the first 7 months. ($5,600 – $706 = $4,894)
  • Beginning in August 2020, when you reach full retirement age, you would receive your full benefit ($800 per month), no matter how much you earn.

When SSA figures out how much to deduct from your benefits, they count only the wages you make from your job or your net profit if you’re self-employed. They include bonuses, commissions, and vacation pay. They don’t count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.

References:

  1. https://www.ssa.gov/benefits/retirement/planner/whileworking.html
  2. https://www.ssa.gov/benefits/retirement/learn.html
  3. https://www.aaii.com/journal/article/13102-a-primer-on-social-security?via=emailsignup-readmore
  4. https://www.ssa.gov/benefits/retirement/learn.html#h2

UCLA Legendary Men’s Basketball Coach: The Wooden Effecting

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“Success is peace of mind which is a direct result of self-satisfaction in knowing you did your best to become the best you are capable of becoming.” John Wooden

During Coach John Robert Wooden’s career at UCLA overseeing the men’s basketball program, he led the basketball team to an 88-game winning streak and 10 NCAA championship titles. But Coach Wooden was equally revered for being a mentor and lifelong teacher.

John Wooden is a legend in basketball, but more important, he is a legend in serving mankind. He was a master teacher and mentor to many inside and outside the sport of men’s college basketball. His Seven Point Creed was a timeless gift that his father gave him as a teenager entitled “Seven Things to Do” – which Coach later coined Seven Point Creed. The Creed contained the following advice:

  1. Be true to yourself.
  2. Make each day your masterpiece.
  3. Help others.
  4. Drink deeply from good books, especially the Bible.
  5. Make friendship a fine art.
  6. Build a shelter (emergency fund, insurance, etc.) against a rainy day.
  7. Pray for guidance and give thanks for your blessings every day.

Coach Wooden also always carried his own creed on a card that read, ‘The Four Things a Man Must Learn to Do”, which are:

  • Think without confusion clearly
  • Love his fellow-men sincerely
  • Act from honest motives purely
  • Trust in God and heaven securely

Real success

Real success, according to Coach Wooden, is defined not by wins and losses, but by the daily development of yourself and giving your best in all you do. Simple as the principles might seem, truly delivering on them requires effort most won’t or aren’t willing to give.

Pyramid of Success

The Pyramid of Success consists of philosophical building blocks for succeeding at basketball and at life.

At the top of the Pyramid of Success was “Competitive Greatness” which Wooden defined as “Perform at your best when your best is required. Your best is required each day.” By pushing yourself to achieve competitive greatness—the apex of Wooden’s Pyramid of Success—you’ll not only achieve all the rewards in your own life, but also have a favorable effect on your family and everyone you come in contact with.

Wooden believed that his greatest responsibility as a coach and teacher was to turn his players into mature and honorable young men, who were well prepared for life beyond basketball, and that his student-athletes’ success should not be measured by grades and wins alone, but also by heart and character.

“Your reputation is what you’re perceived to be, Your character is what you really are.” John Wooden

Among Wooden’s maxims:

  • Failing to prepare is preparing to fail
  • Flexibility is the key to stability
  • Be quick, but don’t hurry
  • Seek opportunities to show you care. The smallest gestures often make the biggest difference

Key takeaways

Remember that success, according to Coach Wooden, is not defined by victories. Instead, he defined success as “peace of mind, which is a direct result of self-satisfaction in knowing you made the effort to become the best of which you are capable.”

Don’t be afraid to fail because if you are afraid to fail, you will never do the things you are capable of doing. If you have thoroughly prepared and are ready to give it all you’ve got, there is no shame if you fail-nothing to fear in failure. But fear of failure is what often prevents one from taking action.

Be confident but not arrogant since arrogance, or elitism, is the feeling of superiority that fosters the assumption that past success will be repeated without the same hard effort that brought it about in the first place. Thus, “I have never gone into a game assuming victory”, Coach Wooden said. “All opponents have been respected, none feared. I taught those under my supervision to do the same. This reflects confidence, not arrogance. Arrogance will bring you down by your own hands.”

Pay attention to the little things. As a coach, Wooden was known for teaching his players how to put on their socks and shoes on the first day of practice. The lesson: Every detail matters.

References:

  1. https://www.thewoodeneffect.com/success-december-cover-story-featuring-john-wooden/
  2. https://www.woodencourse.com/the-pyramid-of-success/seven-point-creed
  3. https://www.thewoodeneffect.com/wooden-life-lessons/
  4. https://www.success.com/why-john-wooden-inspires-us/
  5. https://parade.com/969195/megangrant/new-years-resolutions-ideas/
  6. https://www.success.com/words-of-wisdom-ucla-legend-john-wooden/

Purpose Driven Saving, Investing and Accumulating Wealth

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Investing with a Purpose – “Start with the Why” regarding saving, investing and accumulating wealth.  It’s about your values and life goals.  It’s about keeping your eyes on the prize and on the why you’re saving, investing and accumulating wealth.

There is an underlying reason why you invest your hard-earned money and it’s not just to earn more money.  While that may be the ultimate outcome, the “Why” or “Purpose” of investing is something completely different.  Simply put, you invest to achieve your financial goals in life. These goals are different for every person.  Maybe it’s retirement, a child’s college education, buying a beach house, or planning for the next generation. We all have our own goals, whatever they may be.  It’s your mission to plan out a clear path to achieve those goals. This is what is considered Investing with Purpose.

Purpose-driven investing thrives by instilling a sense of purpose into any investment.  People seek to achieve real-life objectives such as saving for your kid’s college or your retirement.

A firm purpose behind your saving for the future, investing for the long term and accumulating wealth will ensure that you are making the right money management decisions today to achieve long term financial success. Your risk will be optimized when your purpose for saving, investing and accumulating wealth matches your goals and timeline.

People Invest to Achieve Personal Financial Goals

“An investor without investment goals, objectives and a plan is like a traveler without a destination.” Anonymous

Understanding your values and what you want to accomplish in life is essential to “Purpose Driven” saving, Investing and accumulating wealth.  Saving, investing and accumulating wealth are deeply personal undertakings, which is why you must always start with a discussion about what’s really important to you. This helps us shape your saving, investing and accumulating wealth strategy around three key dimensions of your financial life: liquidity, longevity and legacy.

When people are asked why they invest, their answers typically are focused on family and future goals in life—buying a house, saving for emergencies, retirement, taking care of loved ones. Those are the big picture answers. But as in life, it’s often as much about the journey as the destination. Investors have specific expectations about the investment experience, as well as the outcomes.

For example, some investors want long-term growth to build their retirement nest egg, but they don’t want to feel the volatility that can occur in the broader stock market. Others want regular income distributions after they reach retirement. Still others want investments that can help them manage through changes in the economic environment, or more personal economic challenges.

Create the future you want for yourself and your loved ones. New to investing or an experienced trader. To be great and successful at any endeavor, you’ve got to sacrifice and put in the work, because anything easy is just average. To become great you have to make big sacrifices and work really hard — much above average.

Wise spending is a subset of wise investing. And, it’s never too late to start investing.

When you invest in assets over the long term, you are buying a day in the present that you don’t have to work several days in the future.

I like this quote since it succinctly defines one of the primary reason for investing … “putting away money today so sometime in the future, you do not have to work to live”. And the seeds you sow today, will reap the financial harvest to live a life in retirement with dignity and financial security.

Your actions dictate the consequences. Reaps what they sow, they suffer or benefit as a result of their own actions.

Investments are the tools we use to make your financial plan successful.  With your plan as the guide, your stock portfolio should be designed around your personal situation, needs, and goals.

Long-Term Investors Have Almost Always Experienced Positive Returns

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S&P 500 rolling returns have been almost always positive over the long-term.

One of the best ways to invest is over the long term and it’s more important than ever to focus on long-term investing. It’s long-term investing strategy where investors can accumulate wealth. By investing long term, you can meet your financial goals and increase your financial security.

94% of 10-year rolling returns have been positive since 2000.

Rolling returns are measured over consecutive periods starting with the earliest period and finishing with the most recent. For example, the period of measure for a 10-year rolling return for an investment as of the end of February, would be 03/01/2010 through 02/29/2020.

Source: Bloomberg Finance L.P. as of 02/28/2020. Past performance does not guarantee future results. The referenced index is shown for informational purposes only and is not meant to represent the Fund. Investors cannot directly invest in an index.

Investing and learning to think long-term

While many investors of all ages think of investing as trying to time the market to make a short-term return on their investment, investing for the long-term investing is one of the best ways and a proven strategy for investor to accumulate wealth over time and achieve financial security. But the first step is learning to think long term, and avoiding obsessively following the markets daily ups and downs.

References:

  1. https://oshares.com/long-term-investors-have-almost-always-experienced-positive-returns/
  2. https://www.bankrate.com/investing/best-long-term-investments/

6 simple ways to take action in your financial life without hurting your long-term goals | Vanguard

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“It’s natural and human to feel like you need to take action and “do” something–anything–to stay in control and protect your financial interests.”

Scientific studies have shown that the human brain really likes to feel in control. We’re built to take action to protect ourselves and the people we love when signs point to trouble.

That’s why when markets become volatile, it’s natural and human to feel like you need to take action and “do” something–anything–to stay in control and protect your financial interests. You might feel anxious or worried. Don’t worry; you’re not alone in feeling that way.

Taking action during uncertain times may help you feel more confident about the way things will turn out. That said, if you feel like you need to make changes to your portfolio, it’s important to make sure that the action you take won’t put your long-term financial goals in jeopardy.

Here are some things you can do to feel in control without losing sight of the bigger picture:

Run some numbers

If you feel you have to do something, consider starting with your calculator. Numbers can give you a rational way of framing things that can settle some of those anxious feelings. For example, you can analyze how market conditions have affected your portfolio and compare it with the expectations you had based on your risk tolerance. Or compare your current asset mix with your target and rebalance if it differs by 5 percentage points or more.

Speak the language of action

Describing your strategy as “staying the course” or “doing nothing” may make you feel you’re not doing enough. Instead, describe what you’re doing as fighting the impulse to get out of the market or giving your portfolio an opportunity to rebound. You’re trusting your mix of assets to get you through market ups and downs, and that takes mental strength. Give yourself credit where it’s due.

Talk it over

Consider sharing your plan of action with others. Take a look at the Vanguard Blog for inspiration. When other people show support for what you’re doing and chime in that they’re doing it too, it can make you feel good about your choices. Helping others when they have questions can also go a long way toward building your confidence.

Take comfort in history

So far, every market downturn in history has been followed by a rebound. We don’t know when it will happen or how big it will be, but there’s good reason to believe that better times are ahead.

Think about what you can control

If you’re saving for retirement, you may be able to control how much you save or how long you can save (if you have a retirement date in mind). If you’re retired, you may be able to adjust the percentage of your portfolio you withdraw during a market downturn.

Your spending habits are within your control too. Of course, it’s probably not realistic to expect that you’ll start clipping coupons, switch to generic brands, and skip your afternoon coffee run all at once. Try cutting down your spending in just one area at a time to see what works best for your life.

We recognize that this is your portfolio, and you control your asset mix. We don’t recommend changing your asset mix in response to market movement, but if you’re determined to make a change to your portfolio, make it a small one. Some examples of small things you can do: Direct one of your stock funds’ investment earnings to a bond fund, or change the asset mix of a single account rather than your entire portfolio.

Lean in

Lean on personal financial advisors to provide you with the leadership you need to make it through uncertain times. Trusting a financial expert to bring order to a situation that feels out of control can help you ease anxious feelings.

Source: https://investornews.vanguard/6-simple-ways-to-take-action-in-your-financial-life-without-hurting-your-long-term-goals/?cmpgn=BR:OSM:OSMFB:OTHERS:072920:TXL:OTM:xx::OTHR:OTH:OTS:XXX::XX&sf235757186=1

Note: All investing is subject to risk, including possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Loss of Smell is the Most Reliable Indicator of COVID-19.

Aside

Mounting evidence has pointed to the loss of smell as one of the most reliable symptoms of COVID-19 and a majority of COVID patients report that they experience an altered or lost sense of smell or taste, according to Harvard Health Publishing.

A diminished or loss of the sense of smell, called anosmia, has emerged as one of the telltale symptoms of Covid-19, the illness caused by the coronavirus. Of all the early symptoms, this may be the clearest signal that you’re dealing with COVID and not something else, given how rarely this occurs in other illnesses. It is the first symptom for some patients, and sometimes the only one, according to the NY Times. Often accompanied by an inability to taste, anosmia occurs abruptly and dramatically in these patients, almost as if a switch had been flipped.

“Findings show that loss of smell and taste are highly reliable indicators that someone is likely to have COVID-19 and if we are to reduce the spread of this pandemic, it should now be considered by governments globally as a criterion for self-isolation, testing, and contact tracing,” Rachel Batterham, MD, study leader from University College London and University College London Hospitals, said in a statement. “People who notice a loss in their ability to smell every day household odors such as garlic, coffee, and perfumes should self-isolate and seek PCR testing.”

A recent study conducted by University College London, who studied 590 patients in the U.K. who reported suddenly losing either their sense of smell or taste; 567 of the patients were then given coronavirus tests. Their results, which were published in the journal PLoS Medicine on Oct. 1, showed that 80.4 percent of subjects reporting anosmia—aka, the loss of smell—and 77.7 percent of those who lost their sense of taste tested positive.

“There are altogether different things going on when it comes to smell and taste loss for COVID-19 patients, compared to those with a bad cold,” Carl Philpott, PhD, of the University of East Anglia’s Norwich Medical School, said in a statement on a related study. “It means that smell and taste tests could be used to discriminate between COVID-19 patients and people with a regular cold or flu.”

Scientists know little about how the virus causes persistent anosmia or how to cure it. Some experts fear that the pandemic may leave huge numbers of people with a permanent loss of smell and taste. The prospect has set off an urgent scramble among researchers to learn more about why patients are losing these senses, and how to help them.

If you find that you’ve lost your sense of smell or taste, it’s definitely time to isolate and get a COVID test. “Loss of smell and taste is a very common COVID-19 symptom and in fact, occurs more often than fever and lasts longer—five days on average compared to only two for fever,” explained Tim Spector, MS, professor of Genetic Epidemiology at King’s College London.

References:

  1. https://bestlifeonline.com/loss-of-smell-covid/
  2. https://www.nytimes.com/2021/01/02/health/coronavirus-smell-taste.html#click=https://t.co/GimBPkiMSI
  3. https://bestlifeonline.com/loss-taste-smell-coronavirus/