“Pay more, get less” isn’t exactly a compelling sales slogan, but that’s what active money managers are trying to peddle.
BE THANKFUL. Great vacations and wonderful family events fade from memory. Similarly, we quickly adapt to material improvements in our lives, such as the new car and the remodeled kitchen. To counteract this process of adaptation, pause for a moment, and ponder the major purchases you’ve made over the past year and the great experiences you’ve had.
WHILE SITTING AT MY DESK a few months ago, I received a text message from Citibank notifying me of “suspicious activity” on my primary credit card. I immediately logged onto my account and discovered someone that morning had attempted to use my credit card number at a luxury resort—one located several hundred miles from where I work. The charge had been denied, but the damage was done. I immediately cancelled the card. I also began notifying the companies I have automated payments with,
WHAT’S A GOOD REASON to dial down your stock market exposure? A year after Donald Trump was elected president, many folks are still smarting from their decision to bail out of stocks. Clearly, we shouldn’t lighten up on shares just because we don’t like the guy in the White House.
We also shouldn’t bail out just because stocks sport high price-earnings ratios and skimpy dividend yields. No doubt about it, stocks today are expensive.
I RECEIVE MANY QUERIES about taxes. Most of the questions people send are pretty much the same: They want my advice on how to lose less to the IRS.
Most of the answers I send back are pretty much the same: I advise them to plan ahead and stay on top of tax-law changes, especially whether they will be hurt or helped by the Republicans’ proposals for the most sweeping revisions in more than 30 years.
TO IMPROVE OUR BEHAVIOR, we first need to realize we’re on the wrong path and then figure out the right way forward. Often, this isn’t especially difficult. If we have no savings, obviously we need to sock away some money. If we’re overweight, we should cut back on the calories. If we’re out of shape, we need to hit the gym.
Instead, the real problem is getting ourselves to act.
The contemplative side of our brain is fully aware we ought to eat and spend less,
Jonathan Clements is the founder and editor of HumbleDollar. He spent almost two decades at The Wall Street Journal, where he was the personal finance columnist. His latest book: How to Think About Money.