ISAKOV Planning Group Blog
Monday, December 02 2019
Playing the investment game can play with your emotions and sometimes with your mental health! Although the US stock indexes reached new highs in 2019, those who fret over their investments can make a few New Year’s resolutions to help keep their mental and physical health!
1. Stop checking your investment portfolio several times a day. Unless you are a day trader, and few of us are, failing to check on your investments over the passing hours or days will not materially affect your portfolio. It will also prevent you from making unnecessarily high-pressure decisions about whether to buy or sell, based on what may not be meaningful press releases, guidances, or unexplained stock movements. This is guaranteed to lower your blood pressure!
2. Contribute to a retirement savings plan. There are few investments that will be of greater value for retirement and the future of your family. There are several ways to do this:
3. Start saving money automatically. Remembering to deposit money every week or month to a brokerage account can easily be derailed. Any broker or bank will help you set up an automatic savings plan to automatically transfer a dollar amount that you set, as well as a frequency you set, from your bank account.
4. Reinvest your stock dividends. More often than not, stocks that pay dividends are automatically reinvested by the broker. This is a good move. If you decide to receive a dividend check that is subsequently spent, you’re missing a prime opportunity to grow the size and value of your holdings. If the dividend is reinvested, even if the stock price remains the same the next quarter, you will own more of the stock and the next dividend issued will be larger.
5. Set up an emergency savings account. Although very low-interest savings accounts are less attractive than in years past, they are useful to put money away for that “rainy day,” when the furnace needs to be replaced, your trusty old car finally belches its last oil-stained smoke, or you find yourself out of work for an extended period. You may need quick access to that money to pay for ordinary expenses. You should think about having sufficient liquid assets to cover several months of these costs.
These 5 suggestions can change your future savings outlook, as well as spare your health and pursuit of happiness! Contact Isakov Planning Group now to discuss any of these New Year’s resolutions.
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