My 86-Year-Old Mother Is An Inadvertent Market Timer

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My 86 year old mother wears the financial pants in the family and makes all the money decisions. Mom called out of the blue late recently to complain about her investment return. Ten years of great stock returns turned my mother into an 'inadvertent market-timer.'

Share to twitterI've been managing my parent's investment portfolio for 20 years. It's not complicated. Their money is split evenly between two broad market index funds; a total US stock index fund and an intermediate-term corporate bond index fund. That's as simple as it gets, and it has worked wonderfully.wears the financial pants in the family and makes all the money decisions. Mom “Our return isn't doing well,” she said.

Ah! This was a classic case of fixating on one investment rather than the entire pot pf money. It was time to have another talk with her about the basics. This talk was needed every ten years or so when stocks were either doing very well or very poorly. stocks are the place to be. So, we needed to have"the talk", and we'll have it again after the next bear market hits, or the stock market doubles again.

 

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