Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
Bad Behavior
Not everyone is cut out to invest like the pros. Some people aren’t cut out to invest at all. Our behavior only allows us so much room to work. Which is why Carl Richard’s recent blog post is so appropriate. It’s a response to a prominent business news channel that now offers its own ETFs. Something I’ll never endorse.
While ETFs may be a great fit for your portfolio, that doesn’t mean it has to be. ETFs are just one possibility of many for your investment strategy. A strategy that needs to take your behavior, intelligence, time, and goals into consideration. Your portfolio is built to protect your money. And sometimes it’s being protected from you.
So, just to be clear. If you have a propensity to act quickly, overreact, blow things out of proportion, or are just financially self-destructive in every way (in which case you shouldn’t have any access to your money) then you probably shouldn’t invest in ETFs, stocks, or anything really. You don’t need an online brokerage account. In fact, I’d say you should build a firewall around all of your accounts that requires a final authorization after a two-day grace period before any transaction goes through. If you need more time to come your senses, make it a week.
It’s a bit drastic and sarcastic, I know. But it will prevent excess losses at the most inopportune times.
Tax Dollars
This past Monday was the tax deadline. So if you owe taxes, haven’t paid, and don’t have a payment plan set up with the IRS, you’re late. For those of you who did your civic duty and filed on time, you deserve some cheering up. At least that’s what the Washington Post tried to do. It didn’t work on me, but it was interesting.
By the way, we did hit Tax Freedom Day yesterday. Though it was five days later than last year.
Last Call
- Howard Marks: The Wisdom of a Value Superinvestor – great interview with Marks about his book, risk, ego, environment, and competency. There’s video too.
- Investing: 7 Steps to Spring Clean Your Portfolio – something investors need to stay on top of, yet is easily overlooked, very timely advice.
- 12 Rules of Goldbuggery – amusing take around the myths of investing in gold.
- The Great Yield Chase – worth reading if you’re invested in bond funds. Some are taking on more risk, to maintain a higher yield.
- Housing Vs. Stocks – a great comparison considering the turnaround in housing. Note, the comparison doesn’t include using a house as a rental property.