Be careful whose advice you take

“If you saw my portfolio, you’d never ask me for investment advice.” —Financial author Jonathan Clements, on his Humble Dollar blog, listing one of “14 things financial journalists won’t tell you.” Read more

Politics, investing, and the march of time

“Your personal view of [President Trump] either positive or negative is irrelevant to how you should be managing your investments… Politics is a huge distraction and typically leads to ill-considered emotional decision-making.” —The Big Picture blogger Barry Ritholtz, writing on Bloomberg View on 1/20/17. With emotions running high as the new administration gets to work, he cautioned investors to stick with a fact-based approach. Read more

“There were just two problems with trading politics in 2016: the politics and the trading.” —Wall Street Journal columnist James Mackintosh, writing about how the market’s response to Brexit and Donald Trump’s election surprised many investors. Read more

“Accept that history is a continuous chain of accident, regret, error, miscalculation, bad decisions, unintended consequences, surprise, and misinformation—but things still got mostly better for most people, and most people meant well along the way.” —Morgan Housel, writing on the Collaborative Fund blog that life is like the stock market—over time, things tend to improve, but there are lots of twists and turns along the way. Read more

The threat you pose to yourself

“For Americans heading into retirement, your main focus is on building up enough savings to last a lifetime. But there’s another major risk you probably aren’t planning for: cognitive decline later in life. More than half of older Americans develop cognitive impairment or dementia by their late 80s… In your planning, you should include steps to safeguard your money against poor choices by a future you.” —Penelope Wang, writing for Money on 1/24/17 about the very real threat that declining mental health poses as investors age. Read more