Tuesday, January 9th, 2018 and is filed under Financial Planning Tips
FOMO. The fear of missing out. The compulsion to keep up with the Joneses can reach every corner of our lives: purchases, lifestyle, and even investing. Have you ever felt it? Social media has brought this phenomenon to the forefront in recent years, but most people haven’t given much thought to how Fear of Missing Out could be driving their investment behavior.
People like to think that they make their financial decisions based solely on logic …but that may not be the case.
Two researchers from Stanford say when it comes to investing, what we fear most is not the risk of losing our money, but the risk that we might not do as well as our peers. This could mean taking on more risk than is pertinent in the hopes of big pay offs, or leaving too much money on the proverbial table when market euphoria hits. All because we’re afraid of missing out on the next big opportunity.
This strange phenomenon explains why and how bubbles in the stock market appear. Investors pile into certain “hot” sectors or stocks, and prices inflate to unsustainable levels.
So why do investors follow the same patterns over and over again? Strangely enough, a herd mentality emerges that allows investors to feel a sense of false security – the idea that everyone is doing it, so it must be a good idea – and shared loss. When everyone loses money together, it’s not as painful as being the only one to lose (or the only one to “miss out”). The shared loss makes it easier to shrug off losing money, which sets investors up to repeat their previous mistakes.
There is good news though. You can avoid FOMO on great monetary gains while still managing risk appropriately. One way to accomplish this is by moving a portion of your portfolio to a fixed index annuity.
A Fixed Index Annuity offers the potential to grow your money along with stock market indexes, and comes with a guarantee that your money is 100% protected from stock market losses.
If you’re looking for a way to secure savings for your retirement, you may want to consider re-allocating some your assets from risky positions to a fixed index annuity.
Are you in need of a financial FOMO intervention? Contact Dewitt & Dunn today to schedule a complimentary appointment with one of our experts.
Tuesday, October 14th, 2014 and is filed under Annuity News, Financial Planning Tips, Retirement Income Annuities
You wouldn’t wait to insure your house until after a storm, right? Well, it looks like we’re in for ANOTHER big stock market storm and it’s time to protect your assets now before it’s too late.
Thursday, May 22nd, 2014 and is filed under Retirement Income Annuities, Uncategorized
There’s Nothing Irrational About Millennial Aversion To Stock Market Risk
Millennials are keeping their distance from the stock market, and according to writer John Aziz at The Week, that makes them financial neanderthals. Even the few lucky Millennials with ample cash to throw around are avoiding the equity markets, a move that Aziz calls “totally boneheaded”: Read More
Tuesday, May 6th, 2014 and is filed under Uncategorized
Anemic growth barely hovering above zero in the first quarter of 2014 exposed the depths of a lingering and persistently weak U.S. economy. Gross Domestic Product edged up by a scant 0.1 percent, the slackest pace of growth since late 2012.
New Factory Orders gained just 1.1 percent in March, missing expectations of a bounce from a 1.5 percent rise in February. Wages were flat in April compared to March, with the average hourly wage for private sector workers settling at $24.31—a 1.9 percent from April 2013. The average workweek at 34.5 hours was also unchanged from March, though it was up slightly from April 2013. Read More
Tuesday, April 22nd, 2014 and is filed under Uncategorized
Bulls on Main Street go into hibernation
Bulls are a fast-disappearing species on Main Street. Spooked by the big sell-off two weeks ago in high-octane momentum stocks, the percentage of individual investors that say they are bullish is at the lowest level in a year.
Proving once again that Main Street is still wary of the U.S. stock market after the 2007-09 meltdown, only 27.2% of the members polled by the American Association of Individual Investors said they were “bullish” on the stock market as of last Thursday. That marks the lowest reading since April 18, 2013, when just 26.9% said they were bullish. Read More
Wednesday, July 10th, 2013 and is filed under Retirement Income Annuities, Uncategorized, Videos
If you are like most people, you probably have a substantial part of the money you are going to rely on in retirement at risk in the stock and bond markets. Maybe because you think you have to play the market to keep up with inflation, or maybe because you simply haven’t been told there is another way. Or maybe because you don’t know your strategy is likely to fail.
We invite you to learn more. Read More
Thursday, June 13th, 2013 and is filed under Retirement Income Annuities, Uncategorized
How Much is Your Wall Street Brokerage Account Costing You? Calculating the Real Cost of Fees
When it comes to investing, you cannot control stock market ups and downs, and you can’t control what fees brokerage firms charge you.
But, you can control where you invest your funds. Not all Wall Street firms are created equal––and you can rest assured that many charge fees designed to nickel-and-dime you to death. If you voice your concerns over fees, they may claim the fees are necessary to provide you with better service, but that isn’t necessarily the case––many brokerages charge very affordable fees while providing quality service. There is also an alternative to brokerage accounts that provides relief from fees, while also helping your nest egg grow…but more about that later. Read More
Tuesday, June 4th, 2013 and is filed under Retirement Income Annuities, Uncategorized
Do you remember those roller coaster rides when you were a kid? I sure do. I could hardly sleep the night before because of the anticipation. When we finally made it through the gate of the amusement park, I almost dragged mom and dad straight to the roller coaster.
I can still hear the distinct sound of the clack, clack, clack, as the chains pulled the cars up to the very tip top of the tracks. My heart was pounding in my chest as we reached the top and I would throw my hands in the air and scream to the top of my lungs as we took the exhilarating plunge to the bottom.
Those were some of the fondest memories of my childhood. When I think of roller coasters, I think of fun, I think of thrills. But when I think of the stock market roller coaster, I don’t have quite the same outlook. Read More
Tuesday, May 21st, 2013 and is filed under Retirement Income Annuities, Uncategorized
by Cathy DeWitt Dunn –
There is a mountain of data showing that the best time to sell stocks is in May and to stay out of the stock market for the following six months. Data shows that the S&P November-April period outperforms the May-October in the past 10, 20, and 50 year periods by over five percentage points on average. Read More
Thursday, May 2nd, 2013 and is filed under Annuity News, Retirement Income Annuities, Uncategorized
The stock market has recently reached an all-time high, and many people are looking at their brokerage accounts and celebrating. However, I wouldn’t pop the corks on those champagne bottles just yet. There’s a chance that this bubble is about to burst with a big stock market correction coming soon.
A fifteen-year look back at the S&P 500 might shed a little light on why many financial professionals believe a correction is coming and soon.