A Tentative Personal Finance Blog

Who is the best person to handle your finances? It’s you, but let’s say you’re the kind that can make money but don’t know what to do with it once it’s yours. Or perhaps you know a bit about personal finance but need some help on the more complicated matters associated with managing your […]

When it comes to finances, there’s no shortage of tasks to dread and blow off. There’s the paperwork, paying taxes, piles of receipts, shelling out for insurance you hope you never have to use, and on and on. But ignoring the details is even worse than the drudgery of getting them done. There’s debt, denial, […]

Once you’ve developed an investment strategy and selected the appropriate holdings for each of your goals, it’s important to leave your overall plan in place. However, changes in the financial markets and your time horizon may shift your investment mix from what you originally established. So review your plan periodically and rebalance and reallocate […]

It is a good idea to be mindful of news and information surrounding your investments. However, try not to abandon a well conceived, disciplined investment strategy to chase performance, the initial underlying reasons for buying a holding may still be valid.
Some people may be tempted to alter their investing plans in response to short […]

Many people focus on the risk of market volatility, the possibility of losing money through market fluctuations. However, they may not give enough attention to inflation risk, the possibility that their investments will not grow sufficiently to stay ahead of rising prices.
Peoples’ exposure to each type of risk should depend upon their time horizon, […]

The first step to creating a sound investment plan is to establish clear, specific, and realistic goals. People sometimes over look this process. Having clearly defined objectives, however, can be a guide to developing and implementing a successful investment strategy. And a plan based on long term principles should increase the chances of […]

Many of us are likely to encounter challenges to successful investing. And although individuals respond differently, behavioral economists have identified some common predispositions, ranging from loss aversion to overconfidence, that may influence investors’ financial decisions. Gaining a better understanding of these tendencies can enable investors to base their choices on logic rather than […]

While almost everyone will have unforeseen expenses from time to time, their effects can be mitigated with some upfront planning. By establishing an emergency fund, you can become more financially prepared to deal with the unexpected and won’t have to compromise other goals, such as saving for your retirement.
Typically, an emergency fund should cover […]

1. Ignoring their retirement Every new parent seems to jump into 529 plans before their babies are sleeping through the night. They don’t look at the tradeoffs in their own financial lives, specifically getting themselves out of debt or funding their retirement as higher priorities than college education. Borrowing for school, after all, is […]