Debt Free DDS’ Friday Favorites are a collection of this past week’s (or month’s or year’s if still relevant) financial blog posts, articles, or other resources. These are resources I have found very helpful for me on my journey to becoming debt free, financially literate, and financially independent. I believe they will help you too.
If you need help with financial education, please see my Recommended Resources tab. If you are drowning in student loan like I once was, start by refinancing them to get a lower interest rate. See my Student Loan refinancing tab for great options. And if you don’t feel like you know enough to manage your own finances and you need help, see my Financial Planning Services tab for help.
I’m getting excited this week as next week I will be in Las Vegas at WCICON20. Should be a blast. Now on to my Friday Favorites……..
Debt Free DDS’ Friday Favorites 03/06/2020
1) I have heard of a lot of people wanting to time the market with this Corona Virus scare. If you could time the market would it be a good idea? Yes, as it could save you a lot of money. Is timing the market ever a good ida? No. Because we just can’t do it successfully. I am sure you have heard stories where someone got out right before a crash and got back in low. However, they aren’t super smart. They are super lucky. We can’t predict the market. You may think you can, but you can’t. It is likely to be catastrophic for you. Read more from the White Coat Investor about his thoughts about timing the market from this past week.
2) And another from White Coat Investor. This past week he explained that there are really 4 types of investments. To those of you that are newer to investing, this will provide a good framework in order for you to understand the different types of investments. Read it here.
3) Recently there has been some losses in the market. Time to panic? Absolutely not. It’s actually time to buy. However, buying is not the only good tip when the market is down. Don’t forget about tax loss harvesting. Don’t know what that is? Let the Physician on Fire explain in this article. It could save you thousands in taxes. That’s right, market corrections (bear markets, crashes, etc.) are actually a good thing for those of us with a longer investing time horizon.
4) I recently had a post discussing how to protect your wealth which includes your ability to accumulate wealth. One of those recommendations was to make sure you have disability insurance. This past week the Physician Philosopher discussed the importance of disability insurance as well as some riders you must have to protect yourself.
5) Along with many people wanting to market time with the recent market correction, many have also thought about panicking and either getting out of the market all together or decreasing their risk. Now, there is nothing wrong with decreasing your risk (ie. increasing bond allocation and decreasing stock allocation) if that helps you remain in the market. However, it is known that the more risk you take, the more you can expect in returns in the long term. You don’t want to take so much risk that it goes above your tolerance and you leave the market though. Passive Income MD has a post published by the White Coat Investor about how we can increase our risk tolerance. Just increasing your risk isn’t good enough. It will give you better gains long term, but it also may make you panic in a market downturn. Before you increase your risk, you must increase your risk tolerance.
This Week’s recommendation
As you can see this week’s Friday Favorites is heavy with material from the White Coat Investor. Maybe it’s because I am so pumped about his conference next week. It is more likely because he has so much amazing material to make you financially literate and get you on the path to financial independence. This week’s recommendation is his book “Financial Boot Camp”.
This is the second book by Jim Dahle MD, a.k.a. The White Coat Investor. It doesn’t disappoint. This book takes you through a twelve step financial boot camp that will help you get your finances where you want them to be. Like his first book, it is a classic and a must read. There is a lot more to finances than just investing. This book hits on investing and all of those other important topics. Buy it here and add it to your library.
-Debt Free DDS
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