Not Basic Investing Habits

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“The world is run by C students.” - Nick Huber

Not Basic Investing Habits

(full transparency this week’s email was supposed to be “5 Takeaways from the Netflix Series How To Get Rich.” Sadly, your boy didn’t save it correctly so it’s coming in next week’s post. But this one is still kind of a banger.)

Everyone knows the basic advice. Buy and hold long term. Don’t try to predict the market. Reinvest your dividends.

Instead of giving you another dose of “white paper” advice, I put together these healthy investing habits to change things up a bit. These are based on my experiences and are all things I have done that positively affected my investing.

Let’s get into it 🤝 

Separate Accounts

This is one that has saved me no telling how much money. We all enjoy picking a few “home run” stocks and yolo’ing on an option contract every now and then.

Where one often gets in trouble is not realizing the fine line between investing and speculating. To avoid this line completely, try creating an entirely different account with a different brokerage for your speculative stock picks.

By doing it this way you will avoid any temptation that might derail your long-term investments.

Keep An Investment Journal

For those who pick individual stocks, this is something I highly recommend. By journaling your stock picks you will be able to reflect on your previous research, investment thesis, and concerns. There will be many lessons to learn when you look back on your notes which you can use to tweak your investing style.

This was something I actively did during my trading days. While my trading was not successful (read about how I lost $1,000 here), the journal entries were great for seeing how my thoughts were influenced by market events.

Give it a shot, even if it’s just for a month, you might not be as “long-term focused” as you thought.

Backtrack Your Retirement

Sure, throwing money in an investment account every month is better than blowing it all on Starbucks and Amazon deals. If you want to be more tactical though, note how much you would like to have in retirement.

From this number, you can backtrack to see how much you need to be investing each month based on your age and portfolio's average annual return. This also sets a goal for you to achieve, and it feels dang nice when you make it happen.

Linked below is a Vanguard retirement calculator that can give you an idea of what this number might be.

Conclusion

This was a shorter read, but these habits could have a massive impact on your success as an investor.

If you have a weird or superstitious money habit, reply to this email, I’d like to be amused.

Thanks for reading. Till next time G. ~ Cade

Cade's Finds

A Life Unoptimized - Interesting read on how not optimizing every part of your life can make you happier, less stressed, and more creative.

Retirement Calculator - If you need help finding your number, here is a helpful Vanguard calculator to get you on the right track.

Best Memes

If my boss is reading this, it’s a joke

We are built different as the kids say.

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.