fbpx
U

Closing Out 2008 with a Challenge and Books

December 16, 2008

A 2009 Challenge:

2008 is coming to a close and this is the time of the year where we start planning those Resolutions on how we are going to make 2009 better than 2008.  Below I have provided a few thoughts and links:

If you are Unhappy… Make a Change
If you are not happy with where you are financially right now I challenge you to make 2009 the year you make a change. Success is easier than you think… You just have to believe and figure out where your passion is.  Maybe 2009 is the year to start a business, or for you to go back to school. It is very fulfilling and can be financially rewarding to make a big change and have success that leads you to a better life.

If Debt is your Demon consider Checking out Dave Ramsey’s Total Money Makeover.

If you are new to Personal Finance consider reading David Chilton’s Wealthy Barber.
This book is a must read for anyone just beginning their journey into Financial Independence.  The book does not read like a text book.  It is very entertaining and highly motivating.

Curious to see how the wealthy think? Consider reading The Millionaire Next Door.

Wealth is a side effect of finding a career that works with your personal passion and what makes you happy.

Understanding the Limitations of Human Behavior:

Listen to the show today and I share how the desire to time the market can be a dangerous game.

I also need to let you know the facts behind human behavior and your investment returns. There is a great resource that provides an analytical way to review the way many of us act in good and bad times. That resource is DALBAR and their Quantitative Analysis of Investor Behavior (click to check out the site yourself)

Scary Stats and Figures:

Annual Return From 1987-2007 (20 Years):
Inflation = 3.04%
Bond Investor Return = 1.55%
Equity Investor Return = 4.48%

Long-Term Gov’t Bd Index = 7.56%
S&P 500 Return = 11.81%

Average Retention Over 20 Years:
Equity 3.1 Years
Fixed Income 3.2 Years
Asset Allocation Funds 4.2 years

One of the first things that I let people know about investing is that anyone can make money when the market is up. There have been enough studies that support this by using Darts and Monkeys, but your real test as an investor comes when the market is down. I know that most of my listeners are overachievers that own or run successful companies, but even smart individuals can make bad decisions when fear overcomes them. Use this data to keep your thoughts rational if the market continues to be choppy.

Thoughts on the Big 3 Auto Makers
I close out the show and the year with a few thoughts on the situation that the Big 3 Auto Makers are in.  I even have some information provided by a few of my listeners that live in Michigan.

Thank you for listening in 2008 and I look forward to a very productive 2009!

FILED UNDER: Podcasts
TAGGED WITH: Books, debt, financial goals

Connect

Subscribe

Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...