Secrets About Financial Headlines

June 26, 2012

Have you ever wondered if the financial press is helpful or not? -NOT.

Folks, they’ve got us on a string. And, we are so predictable! We just keep on reading.

Take these two back to back headlines from the xyz!&8!! finance web site.

  • Yesterday’s (6/25/2012)  headline: Stock Market Finding a Bottom Again
  • Today’s ( 6/26/2012) headline: 4 Catalysts to Spark an S&P 500 Rally to 1,500

So, if your market sentiments weren’t out yesterday looking for the market’s lowest of the lows, today you can be out looking for the four things that are going to be driving the market higher. Now, are you feeling manic or depressive?

I say,  just step off the emotional roller coaster that we pay the press to put us on. Quit reading the daily financial headlines which are specifically crafted just to make us crazy.

Have a solid financial plan and stick to it. Psst! The market us up an average of 12 days EVERY month. And, the market is down an average of 8 days EVERY month. So, there are plenty of opportunities for both manic and depressive headlines each month.

Whew! Now, I feel better.

Jane Nowak, CFP® CDFA™ -MoneyGal 2020       

Securities offered through Triad Advisors, Inc. Member, FINRA/SIPC


‘Retirementology’ book review: Why Americans fail at saving – USATODAY.com

June 29, 2010

‘Retirementology’ book review: Why Americans fail at saving – USATODAY.com

via ‘Retirementology’ book review: Why Americans fail at saving – USATODAY.com.

Excerpt from the article:

Many of us are making classic mistakes in the way we invest, spend, save, borrow and earn money.

Five of the greatest gaffes:

•We buy into the “red zone” hype. Salsbury dings the financial-services business for pushing the “retirement red zone” concept — a period starting just five years before retirement and ending five years into retirement.

“Millions of Boomers may be seeing red, but there is no zone in sight,” Salsbury says.

•We fall numb by “the number.” Another financial-services bogeyman is “the number” — the amount you supposedly need to comfortably retire. Salsbury maintains that nobody really knows what that number is.

•We’re not logical when it comes to saving for retirement. Americans worry about not having enough money to retire, yet fail to take advantage of savings programs available to them, Salsbury says.

A striking 70% of Gen Y workers don’t participate in employer-sponsored accounts, and more than 20% of workers 45 and older have stopped contributing to their 401(k)s.

•We’re nearsighted about investing. Behavioral economists call this “the recency effect.” You notice your mutual fund has soared in value over the past quarter or two, so you overload your portfolio with stocks. Or, after watching your stock holdings plummet, as in 2008, you go ultra-conservative and bulk up on money-market accounts.

•We pull money out of retirement savings before retiring. Salsbury says 46% of people cash out of their 401(k)s when changing jobs, rather than rolling the money over into another tax-deferred retirement plan.

‘Planning for retirement is more like a 50-year project than a 10-year project’

Shared by: Jane Nowak is a Financial Planner with Kring Financial Management located in Atlanta, Ga. Jane’s practice focuses on Women’s Retirement Planning and Financial Planning for Women. Her articles have been published on line at NASDAQ, Financial Planning Association and Womenetics.com. Follow Jane on Twitter at: http://twitter.com/moneygal2020


Like I was Saying About In or Out of the Market…

June 2, 2010

WhatsNewAtICI ICI: Total estimated outflows from long-term mutual funds were $16.61 billion for week ended May 26. http://bit.ly/a7rppN

Shared by: 

Jane Nowak is a Financial Planner with Kring Financial Management located in Atlanta, Ga. Jane’s practice focuses on Women’s Retirement Planning and Financial Planning for Women. Her articles have been published on line at NASDAQ, Financial Planning Association and Womenetics.com. Follow Jane on Twitter at: http://twitter.com/moneygal2020


Enter Behavioral Finance

May 28, 2010

Well, there is a fairly new area of personal finance called Behavioral Finance that says that we ‘are wired’ to make the wrong investment moves at precisely the wrong times.
Huh? Yes, you read it right. It seems that the human brain hasn’t changed in many millenia. We are motivated by fear and greed. It is our survival instinct to ‘run from danger’ -market bottoms and to feast when there is plenty -buy high.
For many of us all analytical thought processes go ‘out the window’ when our basic flee or feast instincts kick in for us. -Good news for survival. Bad news for investing success.

Jane Nowak is a Financial Planner with Kring Financial Management located in Atlanta, Ga. Jane’s practice focuses on Women’s Retirement Planning and Financial Planning for Women. Her articles have been published on line at NASDAQ, Financial Planning Association and Womenetics.com. Follow Jane on Twitter at: http://twitter.com/moneygal2020


Behavioral Economics

May 21, 2010

Why is it that we seem to make all of the wrong investment moves at exactly the wrong times? You know, buying a stock when it is highly priced and then selling it when the stock market is low. This sale near the market’s bottom ‘locks in’ our loss. Then, of course, we go back in and buy the stock back after the market has risen again. -Buy high, sell low. Ah, er, oops. We’ve done precisely just the opposite of what we really want to do which is -Buy low, sell high.
Does this make any sense? ‘No. Of course not’, you wisely answer. Then why do so many investors do just that?
Stay tuned…


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