Riding the Investing Roller-Coaster…is small cap value making a come back?
January was a stellar month for small-cap value funds, but 2018 was a painful year! What is going on? Welcome to investing: It’s an up and down rollercoaster that requires a long-term focus. From the 15.5% loss last year to this 10.4% gain, could the tables be turning for small cap value to rally? We’ll see. The future is never guaranteed, so be sure to understand your investment philosophy, monitoring process, and then how to execute your strategy with discipline. This is the FJY approach. Read more on this very topic in our blog post.
The Top 1%
As humans, we naturally compare ourselves to others. Whether it is comparing the rich against the rich or which city is most technologically focused. Let’s take a look starting with the have’s and have not’s. Bloomberg put together varying income standards across the world. How much does it take to be the top 1% around the world? And then where does all that money go? First comes taxes, then comes savings, spending, and sharing. The disparity between housing costs (as those of us Northern Virginians know!) can be very different but surprisingly, the cost of childcare doesn’t range as much.
The Amazon HQ2 Saga Continues
After the showdown of the cities battling for Amazon, it was finally confirmed that it’s two new headquarters will be in Long Island City and close by to our Reston office in National Landing. Only time will tell how the areas will change. BUT, there’s a twist! Facing local official opposition, executives might re-evaluate the $2.5 billion investment. Will Amazon abandon its plan to bring lots of jobs and billions in investment changing the planned landscape of this area? We will continue to watch this story very closely.
What Gen Z Can Teach Other Generations
First off…who is Generation Z? The most racially diverse, most progressive American generation yet. The lines between real life and online are blurred…but are they? Read up on the 7 basic life lessons this generation teaches us about how they receive their information and understand the world. Should we really be worried about all this screen time? Now, let’s take a look at the other generations:
- Millennials. They have been called the “richest” and the “brokest” generation. Which is true? It’s a mixed bag. A study from the Federal Reserve found that while Millennials have less money compared to previous generations at their age, Millennial households have more money. Read more to discover all the details.
- Let’s not forget about the 40 somethings, Generation X. Your 40s can be a very exciting and important time; people are starting to hit their strides in their careers and may even begin to enter their prime earning years. Naturally, when that happens, many individuals and families also see their expenses increase whether it is lifestyle creep or normal household expenses. What can you do to avoid that?
- Read this to identify the fundamentals: a budget that creates a nice rhythm, cash reserve, automatic savings, paying down debt, but also
pay close attention to some creative, personalized goals. That could be “Planning for spontaneity” and “Finding a cause and giving to it”. These two represent taking the basics of financial planning to the next level! A helpful checklist for every stage of life is a topic we will continue to address in our Money Matters blog series, Rites of Passage.
You Might Want to Put Down Your Netflix Remote
Bill Gates and Warren Buffet know that all victories mean sacrifices along the way. Those sacrifices could be simple like choosing a more rewarding activity over one that is a time waster. Think about it. When you choose to watch another Netflix show or continue scrolling through your feeds, is there something better you could be doing? No one can buy more time, even the most wealthy individuals! Our daily choices – another Netflix show vs. something productive, fulfilling, and rewarding – are a strong measurement of success.
What is an activity audit? It’s a way to measure the returns associated with each activity. This way you will be intentionally choosing whether you want to enjoy something mindless (in moderation of course!) for a small period of time OR engage in an activity that will provide great rewards. This could be practicing to master a skill, building a relationship, or focusing on a personal goal like fitness or meditation.
We love writing about all things finance to help you learn more about how to achieve financial goals; both personally and with your business. Be sure to check out our blog page for an array of topics covering various aspects of finance, wealth management, and all things employer-sponsored retirement planning. FJY Financial specializes in Financial Planning, Investment Management, and Company Employee Retirement Plans, crafting the right strategy and plan for your specific needs. Contact us today to learn more!