What’s the worst money advice you’ve ever received?
I think, like many, the worst advice I received came earlier in life and it was about trying to buy some stocks and try to time the market. Buy “this hot stock” and then sell it before it goes down. That, obviously, does not work for most people. Some can get lucky and time these things, but most end up losing in the end.
Would you rather receive a large sum of money all at once or a smaller amount of money regularly for life?
I would rather receive a lump sum all at once because I believe I can then invest it and hopefully turn it into a larger amount.
What do you think is the most underrated financial advice, tip or strategy?
Diversification. Most investors know this, however many still choose to invest in just a few baskets.
What is the biggest misconception people have about growing money?
The two biggest misconceptions I come across are: first, investing is like gambling; and second, myths around age and investing.
To say “investing is like gambling,” that it’s out of your control and all [based on] luck is not true. Investing is about doing your homework and crunching numbers. The short term may be bumpy, but over the longer term, it works out. The second misconception is that the older you are, the more money you should have in fixed income and out of the stock market. This, in my opinion, is not true. What dictates your asset mix is your investment goals and risk tolerance and, in some cases, time horizon—if you know you’ll need the cash by a certain date. However, you can be 85 years old and have an all-equity portfolio to meet your goals, or you can be 30 years old and be invested in bonds or fixed income if that will fit your needs.
Can you share a money regret?
Looking back, I don’t really have a money regret. I can always say in hindsight that, perhaps, I should’ve had a fixed mortgage versus a variable, or something like that. But overall, there are never any wrong decisions in life. It’s how you deal with the decisions you make that means everything.
What does the word “value” mean to you?
The word value to me means getting the most out of what you do or own. I don’t mind paying professionals for their services versus trying to save money by doing it on my own. I think people become more successful by obtaining the assistance of a professional. I also don’t mind spending money on quality goods. Some may try to buy lower-end goods and take their chances that they may break or rip or damage sooner. I would rather spend the extra money on something of top quality, which will last longer—hopefully.
What’s the first major purchase you made as an adult?
I guess the first major purchase I made was [buying] a car. Even though I lease my cars now, that was the first major decision I had to make, followed by a house, of course.