Question | Answer |
Does anyone know what the stock market is going to do? | No, cannot foretell the future |
Who is the most successful investor? | Warren Buffet |
How did Warren Buffet say he achieved being the most successful investor? | He says to hold your stocks for the long term |
Pain of loss compared to reward from gain means? | Remember the loss is twice as strong as the reward from gain |
What are two things we can know for sure: | 1. Diversification can reduce risk, takes skill and the mix matter 2. Successful investors look beyond short term fluctuations |
What are several reasons not to invest? | stock market crash, 9/11, Y2K, Nixon's resignation |
What is a CD? | Certificate of Deposit |
What does Dave Ramsey call a CD? | Certificate of Depression |
Is interest rate high or low with a CD? | Low |
Treasury Bill | fixed and too low in investments |
What number of years did we have a positive rate in return in the stock market? | 50 out of 69 years |
Which is more important? Timing the market or the length of time you put it in? | Time is more important than timing |
What is investing and reinvesting your money? | compound interest |
How often should you invest? | regularly |
What are the benefits of regular investing? | encourages discipline, offers a systematic approach, keeps you investing in the down markets, and eases anxiety |
What are the best days to buy? | 40% during a bare market, and 34% in the first two months of a bull market catch: (no one knows if its a bull market), 26% during the rest of the bull market |
What do you want to try and avoid when investing? | Buying high and selling low |
With a mutual fund what kind of access do you have to your money? | easy access |