Long-term investors face more complexity over time. I provide guidance and clarity. I'm Jesse Cramer, former aerospace engineer, now fiduciary financial planner, writer of The Best Interest and voice behind Personal Finance for Long-Term Investors. I'll help you create a structured plan for your financial life; one coherent system that you understand, that you can implement, and that works. Without a good system, your wealth quietly erodes. The conversations we avoid become the problems nobody planned for. You've done the hard part. Let's figure out the rest.
Some "Bad" Money Moves That Are (Actually) Just Fine 🤡
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Good afternoon! Thank you for reading The Best Interest And listening to my podcast, Personal Finance for Long-Term Investors From the blog...I saw someone post this image on LinkedIn this week.
They commented on this picture: You want to risk-manage your hard-earned assets. Here are some rough estimates on the return you would need (in right) to break even again (regain) after taking a loss (on left). Returning to break-even isn’t a 1-for-1 process. Risk management is key. You might have seen something similar before. I know I have. Lots of investment people out there talk about how small percentage declines require big percentage gains to get back to even. Their takeaway concerns volatility and risk management. They’re claiming that losses are “extra” harmful because they require larger subsequent gains to get back to even. As this particular investor wrote: “Returning to break-even isn’t a 1-for-1 process.” In other words, “Be extra fearful of losses, because they count ‘more’ than gains.” This is flawed logic. We need to stop this line of reasoning. It doesn't make sense and causes us to be worse investors for it. Is It Harder for Investments to "Break Even" After They Decline? On the podcast...Episode 128 of the podcast features some "dumb" or "bad" financial moves - things that a spreadsheet or Dave Ramsey might disagree with - that I think are totally fine. Or, at the very least, deserve some serious nuance before we cast them aside. Give it a listen below! Some Dumb Financial Moves (That I'm Fine With) | E128 Weekly Top 3 - Other Content You Can't Miss🧠 From Morningstar: thoughts on Warren Buffett's secrets to success 📊 From Ben Carlson: a bunch of great charts 🤖 From CNBC: I'm concerned about how AI will make scamming worse. This article shares one example. What Are *Your* Questions?I've been creating "ask me anything" episodes on the podcast, where I answer your questions about investing, financial planning, and retirement. They are quickly becoming my most popular episodes. I'm collecting questions for AMAs 15 and 16. Work with Jesse!I work for a fiduciary wealth management firm in Rochester, NY, helping busy professionals and retirees avoid costly mistakes and grow lasting wealth to and through retirement. Learn more here --> Work with Jesse Until Next WeekThank you, as always, for reading, listening, and getting in touch. The project continues because you are a fantastic audience. People like you send me questions every single day. Send an email or ask me question: jesse [at] bestinterest [dot] blog Until next week, Jesse |
Jesse Cramer
Long-term investors face more complexity over time. I provide guidance and clarity. I'm Jesse Cramer, former aerospace engineer, now fiduciary financial planner, writer of The Best Interest and voice behind Personal Finance for Long-Term Investors. I'll help you create a structured plan for your financial life; one coherent system that you understand, that you can implement, and that works. Without a good system, your wealth quietly erodes. The conversations we avoid become the problems nobody planned for. You've done the hard part. Let's figure out the rest.
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