Financial Wellness @ Work

The Risks of Employer Stock

One of the biggest risks I’ve seen lurking in people’s investments is having too much in a current or former employer’s company stock.What’s too much? You should generally have no more than 10-15% of your investment portfolio in any single stock. Keep in mind that an investment adviser can lose their license for recommending more than that. Read more

What Risks Are You Willing to Take?

One of the things that always astounds me is the behavior of people when there is money on the table. The bigger the pile, the more interesting the behavior gets at times. In my days working with clients of substantial means, sometimes their decision making would particularly puzzle me.   Read more

What is Risk?

For many people, reducing their risk is their top investment priority. Yet, in I’ve noticed that the word “risk” means very different things to different people. The standard definition in the financial world is the variance of returns. In other words, a risky investment is one in which the returns fluctuate a lot from year to year. But when most people use the word “risk,” I think they’re referring to the probability of their investment losing value.  Read more

Are You Taking Too Much Risk With Your Investments or Not Enough?

Last week, I wrote about which investment firm is the best.  (You’ll have to read the blog for the answer!)  As a part of that blog, there were some questions I left unanswered.  So I’ll address two of them today and the remainder next week. Read more

What Would Goldilocks Do?

Over the last few months, the stock market has reached levels that we have not seen since before the financial crisis/Great Recession.  Companies are reporting good earnings.  Interest rates are low.  Economists say that we are in a recovery.  Yet, so many people I talk to are still very afraid to re-enter the stock market.   I see a lot of 401(k) accounts that are still more conservatively allocated than the employee’s goals and age would indicate they could be.  My question, which I ask either to myself or to no one in particular, is “Why?”  I have my own theories and I talked with a psychologist about what her field might say about this issue. Read more

There’s More Than One Way to Become a Millionaire

I listened to a radio interview recently with a talented and enigmatic artist, David Choe, who has an amazing life story.  It’s filled with a lot of twists and turns, making a fortune gambling in Las Vegas, losing that same fortune in Vegas, some wild and erratic behavior, and most recently becoming a $100-millionaire overnight.   Here’s the cool one-in-a-billion kind of story that makes us all think “wow, that could be me one day.” Read more

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