Ask Jill: Talk To Me About Your Money
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
I used to dole out financial advice for a living. Everything from cash flow management to retirement planning, investments, education funding, life insurance, estate planning-you name it! Clients, radio listeners, TV viewers were never shy to "Ask Jill" about anything that had to do with money.
The most vexing questions were from clients who were freaking out about the markets. "How come the stock market is up 10%, but my portfolio is only up 7%?" Um, because Mrs. Jones, you said that you were a balanced investor. That means that you when the stock market is up, your portfolio will not be up in lock-step with it.
Here's another one: "How come I'm losing so much money?" Um, because Mrs. Jones, you're a balanced investor and that means that when the stock market is down 40%, you're going to suffer some losses too. The balanced part saved your tush, because your portfolio is down 16%, which stinks, but is sure is a far cry from 40%!"
Yes, I was asked those two questions by the same client, though of course at different points in the market cycle. What clients forget to tell me is that they wanted to make as much money as possible on the way up, but really didn't want to lose anything on the way down. Me neither, but being an investor of any kind means accepting some level of risk.
Today, I can field questions from total strangers without the same level of emotional engagement. In fact, now I can answer your questions with no strings attached-just you, me and everyone else reading the blog or listening to Ask The Experts.
You can post a comment on my blog, shoot an email to asktheexperts@moneywatch.com, or go here and I will do my best to help you out. Think of it like financial therapy-no judgment, no scolding, just tell me about your money.
