One of the most common reasons people give for refusing to invest in stocks and bonds is it reminds them too much of gambling.
After all, both are uncertain, involve risk and may result in a loss.
But avoiding financial markets for that reason is a bit like refusing to eat because it could potentially cause heartburn.
Like it or not, we all have to take risks in life.
If you’ve ever suffered a major financial loss, you know the last thing you want to hear is, “it’s only money.”
Because it’s not just money...
The emotional and physical effects of a major financial loss are similar to the grief you feel over the loss of a loved one, according to Aaron Bruhn, a lecturer at Australian National University.
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[Estimated reading time: 4 minutes - Read while pondering the meaning of life]
If you want to get rich, you probably dream of finding the ideal money manager – someone who can peer into the future and know which stocks will sizzle and which won’t.
The market guru we all yearn for is omniscient, infallible, nearly god-like.
But would you actually be happy with such a flawless creature?
[Estimated reading time: 6 minutes - read while you debate whether to start your post new year fitness plan]
It’s easy to snicker at people who make New Year’s resolutions.
John Norcross, a professor at the University of Scranton, found that only about half of those who announce such self-improvement programs manage to stick to them for even three months.
But the cynics who laugh at all those quitters may be missing the bigger point.