alexis rhiannon millionaire teacher

Summary List Placement
When the stock market tanked at the start of the pandemic, I watched my peers panic and pull their money out.
I considered it, too, but a lesson I learned from Andrew Hallam’s “Millionaire Teacher” convinced me to stay the course.
In his book, Hallam explaims that pulling your money from the market when it drops is akin to shunning a store’s products when they go on sale.
Instead, he recommends investing more. So that’s what I did. And now, I’ve not only recouped my losses, I’m back on the road to building wealth for retirement.
Sign up to get Personal Finance Insider’s newsletter in your inbox »

When fears about the pandemic cratered the stock market back in March of 2020, I watched many of my peers panic, pulling their money from the market to cushion themselves from losses. The temptation to do the same was strong, but luckily, I was bolstered by some reading I’d done back in 2017. 

“Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School” by Andrew Hallam has a whole chapter dedicated to overcoming your own instincts in order to more effectively accumulate wealth, and thankfully, the memory of what I’d learned there was all the incentive I needed to grit my teeth and leave my money invested.

Why timing the market is never a good idea

The chapter is called “Conquer the Enemy in the Mirror,” and it lays out the counterintuitive way that many investors think about the market. History tells us that most investors jump into the market when it’s soaring, and jump back out when it plummets — a process called market-timing — but Hallam explains just how backward those instincts are. He compares it to shopping at a store only when the prices are highest, and shunning or even re-selling its products as soon as they go on sale.

  Promoter auctions off rock star guitars to keep Canyon Clubs open

Not only that, but market-timing is largely a myth, as getting in and out at the right moment comes down to luck, not skill. 

Ultimately, it’s not about timing the market, it’s about time in the market. If I’d pulled my investments the moment they started to tank last March, I might have saved myself a lot of short-term loss, sure. But I also would have missed out on long-term gains as my funds recovered themselves, which will ultimately dwarf any day-to-day movement.

A down market is a smart time to invest

As Hallam points out, young investors like me with decades before retirement should thrill when we see a drop-off, shoveling money into our portfolios instead of pulling it out in a panic, knowing that the market has nowhere to go but up. Ignore your plummeting balance and stick like glue to your dollar-cost averaging strategy. Especially in volatile times, these are the moves that reward the disciplined investor: the only way you can be sure …read more

Source:: Business Insider

      

(Visited 3 times, 1 visits today)
News

Leave a Reply

Your email address will not be published. Required fields are marked *