Category Archives: Invest

What is Your Risk Tolerance?

what is your tolerance for risk

All of the volatility in the stock market recently has probably tested your tolerance for risk.  And some people may feel that they are more tolerant to risk than they really are, and there is nothing like a sharp dip in the market to bring that to light.  So I thought it would be a good time to evaluate just how tolerant we all are to risk, because the better you know yourself and your investment style, the more prepared you’ll be to handle the ups and the downs.  People who are aggressive investors might have seen last week as a great buying opportunity while other more conservative people were hiding under their comforter praying for it to be over.  I recently took 3 risk quizzes online to identify my tolerance for risk that I thought I would share today so you can see what is your risk tolerance.
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What’s Happening with the Dow and Why You Shouldn’t Panic

keep calm and don't look at your portfolio

The Dow plunged 500 points last Friday and roughly 1,000 points since the beginning of last week.  All three market indices (the Dow, S&P 500 and NASDAQ) now are at a loss for the year.  So there is a lot of panic going on in the financial world, naturally.  If you click on a myriad of articles from major news sources such as Wall Street Journal, Market Watch, NBC or CBS, you’ll find that they are predicting more losses this week.
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Teaching Your Kids About Money at Every Age

teaching children about money

Teaching your kids about money is a crucial skill that is currently left out of our school systems.  But it can be a fun and easy thing for them to learn at home.  My 3 year old already understands that we use money to buy things, and she’ll say something like “oh you can just use some money and buy that for me at the store Mommy”….which cracks me up.  But I’m looking forward to when she is a little older and understands that money is not limitless.  The most important lessons – 1) living below your means, 2) debt is not your friend, 3) starting to invest early and 4) giving back, can be passed down to your kids by example and through openly talking about the financial choices you make in life.  If you decide not to take a trip because it wasn’t in your budget, it’s important that your children know why.  And explain to them which charities you donate to each year and what companies you own stock in.  Here is an age by age guide to how you can begin to teach kids about the different concepts of money and finance:
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