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#Save cash now stock marekt how to#

(1) Those who have no strategy at all and eventually give up or lose most of their money. The way I see it there are 4 kinds of investors: Without an overarching philosophy to bring it all together, you’ll just be chasing one investment fad to the next. The idea behind defining your investment philosophy is that you can make a handful of the big decisions upfront to save yourself some emotional bandwidth along the way so you don’t have a micro-manage your portfolio on a regular basis. There’s this old saying that you shouldn’t make one hundred decisions when one will do. Your philosophy is a simple set of principles that will guide your actions when making investment decisions.

And I believe behavior will determine your success or failure as an investor.

I believe investing must be tied to goals to work effectively.

I believe risk & reward are attached at the hip and a long time horizon is your friend.

I believe less is more, costs & taxes matter, predictions are unreliable and performance is mean-reverting.

Let’s try it with my general investing philosophy: You don’t necessarily have to keep it to 25 words or less but having a philosophy is equally important when investing. He’s been known to use this as an interview question for potential assistant coaching hires as well.

What kind of leader would you be if you didn’t have a general philosophy?Ĭarroll then follows it up with this: “Can you describe your philosophy in 25 words or less?”Īt this point, basically everyone’s hand goes down. Of course, everyone in the room always raises their hand. In his talks he begins with a simple ask of the audience: “Raise your hand if you have a philosophy for your team or organization.” Carroll is a high energy enthusiastic guy who has a Super Bowl and national championship under his belt so I can see why other coaches and business leaders would be interested in what he has to say. Seattle Seahawks coach Pete Carroll does a lot of speaking gigs in the off-season. You need an overarching investment philosophy to follow. You can’t just wing it by putting your money into something and hoping for the best.

#Save cash now stock marekt how to#

I would love to be able to tell you how to invest this money - be it index funds or blue chip stocks or real estate but I can’t. That is an ungodly amount of cash especially if it’s not being earmarked for a future purchase like a house (which doesn’t seem to be the case here).

19% in stocks (I’m assuming this is a brokerage account).

Your portfolio right now looks something like this: That’s how you reach financial freedom.īut you obviously have way too much cash on hand. You’ve gone from a couple thousand dollars to your name to saving nearly $100k a year which is a savings rate of almost 30% savings rate based on your income.Ĭreating a six-figure income combined with a high savings rate is the hardest part for most people. Should I invest them into ETFs or blue chips in a lump sum? Or should I plan to invest in real estate for some passive income?įirst, this is an amazing accomplishment and what makes this country great.

I need your suggestion on what options I have to better utilize the cash in checking accounts. We both plan to work for the next 13 years and then think about retirement. Investments through 401k, 529 plans: $100k.

At this point, here’s what we have accomplished financially: Since then have slowly progressed in our careers. We moved to Phoenix, AZ as immigrants 7 years ago with just a couple thousand dollars to our name. My wife and I are 42 with a 13-year-old son. How to Invest if You’re Sitting on a Pile of Cash Right Now