In addition to serving as a Financial Advisor Coach, Jeremy is a Tax Advisor/Enrolled Agent and has been involved in the Wisconsin Society of Enrolled Agents. Thanks for sharing your money smarts, Jeremy!
What is the number one myth of investing?
I think the number one myth of investing is that anyone, individual or firm, can produce superior returns through stock picking - or timing the market… basically, by being a "guru" and knowing all the best companies to buy ahead of time. This has been studied since the 1960s, and the balance of the evidence suggests that that these activities are not successful most of the time.
What’s the first step to financial freedom?
That is a great question. I think there are two parts:
First, your income must exceed your expenditures. That seems obvious.
The second part is harder. That’s the "why" or the purpose. Investing just to "get more money" is not a purpose. Money can be a terrible master. One affluent investor mentioned that having to constantly trade and watch his portfolio was like "a noose around his neck.” Your money should never feel like that. To get true financial freedom you must have a solid "why” and use a financial strategy that positions money very low on your list of everyday worries.
What should guide someone’s investment decisions?
This also has two good answers. First is risk tolerance. How much can you stand to see your investments go up and down in value. That is a hugely important consideration.
Second, it should be academic scrutiny. What you KNOW about the markets to be true should guide what you do. If your doctor told you to plug your ears with mud to stop your cold, you wouldn’t do it, as you know that to be medical quackery. Unfortunately, many investors are doing just that when they make decisions based on what they are told - not what they know.
What are some ways to keep track of spending?
I don't think there’s simple answer to this except effort. Whether it's with a plain old pen and paper budget, or a budgeting app on your phone, it just comes down to follow through.
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For more information, plan to attend our Money Smart Week programs. Additional resources are available at the library or you can sign up for an interactive, instructor-led online Gale Course.
