The ways you choose to use your money can be attributed to what are called behavioral biases. Behavioral biases are when you tend to always think and move in a certain way, or according to a specific principle.
As we continue experiencing a year of financial uncertainty, let’s take a look at where the world stands when it comes to cryptocurrency and whether you should invest in cryptocurrency.
Some avid investors will say that there’s an art and a science to investing. But when it comes to choosing an investment style that works for you and your specific needs, you’ll likely come across terms such as passive investments, active investments, emotional investing, and evidence-based investing without much knowledge of what they are or how they differ.
If an investor just looked at the headlines – record breaking market returns – they might think that the long bull market had returned with a vengeance. And it may have – that remains to be seen as events play out in 2021
Investing in retirement used to be simple – switch to a 60/40 allocation, take out 4% a year, adjust for inflation, done. The goal was to avoid risk to the principle.
How much do you need for retirement? Well, investment research firm Morningstar has a handy but somewhat scary stat: $1.18 million. Using average annual returns of 6 percent and pegging inflation at 2.5%, Morningstar calculates that’s the amount of savings needed to achieve $40,000 per year in annual income for 30 years.
