Confidence in the Stock Market Leads to Apathy which Leads to…

All the signs are appearing. The market is doing well. Investors are happy. We’ve recovered fully from the 2008 crash, for the most part. Right? Well, take a look at this chart.

So, what exactly are we seeing here? This chart measures the “fear index.” The lower the volatility, the more confidence investors have in the stock market’s strength. And overconfidence causes apathy. I don’t have to tell you what apathy brings. So what’s the smart saver to do?

We recommend these four principles of wise investing from financial expert Clark Howard…

1. Check your portfolio. When is last time you actually looked at your holdings? The first thing to do is a checkup. Figure out if your asset allocation makes sense for you. For many people, what makes the most sense is a target retirement fund. You select the year closest to when you want to retire and simply put all your money into it. Then the fund manager adjusts the risk level over your working years.
2. Know your retirement horizon. If you have 20 or 30 working years ahead of you, don’t worry about what’s going on today. Just keep dollar cost averaging. Do not allow news of today to take your off the target you are trying to achieve, which is long term financial security.
3. Don’t put money in employer stock. When you take your 401(k) money and put it in employer stock, it’s like putting all your eggs in one basket. You’re getting your paycheck from your employer and you’re hoping to build up a healthy retirement on your employer’s back. Doing it that way ignores that companies have a lifecycle just like people. They do well for a period and then they may lose their way over time.
4. Investing should be dull so you get to live an exciting life. A lot of people think investing should be exciting because they live dull lives. I say exactly the opposite. That’s how you survive if a stock market crash comes.

Worried about your current retirement plan? Concerned you may outlive your nestegg? You’re in luck! Head on over to NesteggRepairman.com to accept your FREE Nestegg Health Analysis!

Are You Thankful for Financial Security This Thanksgiving?

Thanksgiving is just a few days away! Families reunite, friends reminisce, stores open for business before folks finish eating. It’s all part of Turkey Day 2013, the special time we give thanks for all the blessings we’ve received from above! In this time of economic recovery, families are especially thankful for financial security. For those who desire more of it in their lives, banter about investment portfolios and life insurance will surely rule mealtime conversations.

In fact, the holiday season sees the most purchases of life insurance policies of any time in a year. Here’s an insightful article from Efinancial on why people scarf up policies between Thanksgiving and Christmas.

The Nestegg Repairman has over thirty years of experience helping families build their nesteggs. From young single professionals to family units with two sets of great-grandparents, we provide more than financial planning services–we bring both peace and security. This Thanksgiving, talk with your family (your whole family) about your current financial situation. How can you bolster your portfolio? Are your insurance premiums to high? What about long-term care? These are the kinds of questions families ask this time of year. These are also the kinds of questions The Nestegg Repairman is here to answer. Check out this testimonial from a young business owner we’ve helped. Here’s what our friend Joshua Lisec has to say about his experience with The Nestegg Repairman…

“Chuck and Jeff are not only two of the most knowledgeable gentlemen in the financial planning industry I’ve ever met, they are the most helpful as well. As a business owner, I have to assure that both my personal and professional finances are in tip-top shape. Thanks to The Nestegg Repairman, I am squared away with excellent health insurance coverage as well as a nestegg–that’s right, Chuck and Jeff have helped me start saving as soon as possible. I highly recommend The Nestegg Repairman to business owners and employed professionals alike, as well as to families looking for greater financial security in a season of global economic instability.”

Visit our services page to learn more! 🙂