This Investing Mistake Cuts Returns In Half

Today, we’re digging into the one mistake that (statistically!) is most likely to thwart your ability to get “average annualized returns of 10% per year.

Mentioned in the Episode:

This show is a production of Morning Brew and is produced by Henah Velez and me, Katie Gatti Tassin. Devin Emery is our Chief Content Officer. Our video editors are Christie Muldoon, Sebastian Vega, and Nichole Friedman. Additional fact-checking comes from Kate Brandt.

—
🍿WATCH NEXT:

MY FREE ONLINE COURSES:
📈 Investing 101:
☕ Early Retirement 101:
✈️ Travel Rewards 101:

MY PREMIUM ONLINE COURSES:

MY KEY LINKS

WHO AM I:
I’m Katie, a personal finance content creator on a mission to make everyone else as obsessed with their financial health as I am. With small tweaks and just a little more awareness, you can live a richer, happier life. I started writing about money in 2018.

#moneywithkatie #investing #buyandhold #stocks #investingtips #stockmarket

[hope]

Why are you no longer uploading the full podcasts to YouTube? I really enjoyed watching the content ☺️

[moonrich]

As a decades-long amateur investor, I say your advice is spot on! Now in retirement, I've bought three new cars, done three major home remodelings and gifted many dollars and still see my funds grow. Sacrificing now in your 20s, 30s, 40s will pay big time when older age inevitably comes. If you die before retirement you can help loved ones and charities remember your generosity.

[caseyboynton]

Hi! Could you explain what “dollar cost averaging out” looks like? This is something you mentioned in your recent roundup on pivoting brokerage savings towards a home purchase

[ld]

Buy wisely, hold on and don't peek.

[vectorhacker-r]

I invest in an "aggressive" 100% stock portfolio, but here's the thing, it's two total market funds. A total US stock market fund and a total international stock market fund.

[turningsenseintodollars]

I made a stupid mistake to pull a portion out in June 2022 because Michael Burry was saying the stock market was going to go down more. I was thinking I could beat the market by buying back in when it bottomed.

And now it's almost back to the 2021 high. Whoops.

The saving grace is that the portion I pulled out was a small part of our portfolio. But as a frugal person, it still hurts to buy back in and take the loss.

[JoeSmith-jdzg]

As Ric Edelman would say: "Don't just do something, stand there!"

[malachibrand]

Do you invest a lot into crypto and see it as extremely profitable?

[george]

Just keep investing in low cost total market index funds.