Party with Tina!

As Cameron in our office says, "Now is the time to party with TINA (there is no alternative)!"

No, I'm not talking about U.S. Olympic swimmers, Ryan Lochte, and his friends. Although that could have been what they were thinking when they went out for a night on the town last week. I'm talking about the stock market's many-year rally without a decline. TINA: there is no alternative. What are investors going to do besides invest in stocks?

Wall Street has a bad case of arrested development. One of the keys to staying invested during this prolonged stock market party is to be ready for the inevitable and embarrassing scene "in the street." Investors still feel the agony of 2008. When something cannot continue, then things will change.

Psychologists tell us that preparation for tough times can be healthy. If we walk through what we are likely to feel, then when we feel these scary feelings, we will have a better chance to re-engage our logical brains and act--or not act--in our own best interests.

On the other hand, imagining the worst, feeling our fears over and over again, can be dangerous to our health. Fears of tough times often causes the same chemical reactions in our brains and bodies as if we were actually going through these tough times. If we dream of a threat, our bodies react as if we are having the threat. So imagining a crash can be just as scary--at least in our chemistry--as an actual stock market threat. And it's affecting us, young and old.

The young folks who hardly had any money, if they even have money now, are spooked by debt.

Millennials are avoiding credit cards and debt at higher rates than previous generations. The ramifications could be profound. Many are delaying home purchases, they're avoiding buying tangible goods, and they are blaming their student debt for their decisions. Many live in fear of debt and are avoiding investing entirely. They may just flat-out consume less as they age. Or, they may join the consumer culture of their parents and grandparents.

On the other end of the spectrum, retirees are learning how to live with less. Here are five tips to save on food costs.

And one of the largest costs, and fears, is healthcare for retirees. A recent study from Fidelity claims we'll spend an average of $130,000, from age 65 to the end of life, on healthcare. 40% of that is on the out-of-pocket costs not covered by Medicare, a smaller third on the actual costs of Medicare insurance, and maybe 28% on medication, which is getting so much attention. And long-term care costs add more expenses on this.

So our time with TINA isn't our favorite. It might be that our neighbors and friends are fearful because TINA means they must consider investing in the most emotional of investments: stocks.

"To hell with bonds!"
The Rooster Calls--Is Your Portfolio Sleeping?

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