Even in the best of times, investing can feel tedious and overwhelming. That’s especially true today, when it feels like news about the economy is coming at us from all directions. In the past few months, the stock market has swung up and down depending on interest rate hikes from the Federal Reserve, employment numbers from the Bureau of Labor Statistics, and changes to inflation measured by the Consumer Price Index. With so much information to digest, we have to make sure we know the basics inside and out. What does it look like to get started investing in 2022, or to invest more in 2022? And why, in this 401(k), set-it-and-forget-it world of ours, do we even need to know how to pick individual stocks?
Jean tackles these questions and more with Karen Finerman, CEO and co-founder of Metropolitan Capital Advisors, panelist on CNBC’s Fast Money, and author of Finerman’s Rules: Secrets I’d Only Tell My Daughters About Business and Life. Karen and Jean have also teamed up to launch InvestingFixx, an investing club for women of all experience levels. Together, the women of InvestingFixx will build a portfolio from scratch, learn all the moves that the most successful investors make, discuss their ideas in a judgment-free zone, and gain the confidence they need to be in the driver’s seat of their financial lives — all with Jean and Karen’s guidance.
In this special preview of InvestingFixx, Jean and Karen talk about whether we should approach investing differently during different life stages, and how we can keep calm and make smart decisions, even during a volatile market.
“Your emotions almost always tell you exactly the wrong thing in investing,” Karen says. “When everyone’s talking about this tech stock and that tech stock, and it goes up every day, you feel like, ‘Oh yeah, I’ve got to get in on that.’ And when things are really terrible, you feel like, “No way, I wouldn’t touch it.’ But it is the exact opposite that’s going to make a portfolio do well.”
We also get into picking individual stocks. Karen shares her best arguments for taking greater control over your portfolio: it can help you learn more about business, allow you to make better choices as a consumer, and fire up your drive for investing. Karen talks through her strategy for vetting the companies she supports, which includes looking at their balance sheets, researching competitors, and evaluating their management team. Jean and Karen also discuss the idea of risk — women are generally more risk-averse when it comes to investing, and that hesitation often comes with an opportunity cost. Karen tells us how we can take calculated, limited, and well-researched risks to protect our money and get the best returns.
In Mailbag, we answer a question from a listener who wants to teach smart investing to her son. We also give advice to a woman who’s reached retirement age with limited savings, but full ownership of her home. And in Thrive, how to let go of productivity guilt and avoid burnout.
Learn more about InvestingFixx here and sign up today.
This podcast is proudly supported by Edelman Financial Engines. Let our modern wealth management advice raise your financial potential. Get the full story at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM1969416