I’m not going to deter anybody from getting invested to fund their retirement, but I will try to steer you away from using rules of thumb that are likely to be contrary to your ultimate goal of living your best possible retirement.
According to the Employee Benefit Research Institute, currently 67% of workers are “very” or “somewhat” confident that they’ll be able to live comfortably in retirement. ... Their optimism is probably misguided, but I’m happy for them. Ignorance, as they say, is bliss.
Do you know who gets the worst returns in the stock market? People who buy something because it’s gone up in price and sell something because it’s gone down in price. Time and time again, following the crowd has proven to be the stupidest thing in the world of investing.
Recency bias is the tendency to think that what’s been happening recently will keep happening. It’s one of a group of behavioral finance biases that cloud the judgement of investors.
Here's the last of Hershey's New Yorker-style cartoons -- for now. But who knows? As the result of this week's run, he may be showing up in the pages of the New Yorker, right along side Roz Chast. And then we might see Hershey's illustrations at the Rockwell Museum.
