There’s an old saying: Nothing good happens quickly. While this may not be the case in all situations, it may apply to investing. As the “Time in the Market Matters” chart shows, the annual range of returns, even for a globally-diversified portfolio, can be quite large. However, the longer you hold the portfolio, the narrower that range of outcomes becomes — a potential benefit for long-term investors.
If you’re looking for ways to more effectively manage your finances, start by avoiding the seven money mistakes in this article.
Because making decisions involves both logic and emotions, understanding one important academic concept, “status quo bias,” as described in this article, may help us make better, less emotional decisions, especially when it comes to investing.
Finally, if you’re trying to decide whether to move or remodel your house, this article helps you weigh what’s truly important to you (Guest space? Unique design? Wonderful neighbors?) with what you can comfortably afford to spend.