Craig Erwin

Firms can share profits with shareholders as dividends. Lucrative, but risky at times. Firms paying the highest dividends may not last long. Although buying the stock of companies that pay hefty dividends may be savvy, buying stock solely based on dividends is unwise. Careful.

Lots of millennials shifted out of stocks into cash during last year’s stock sell-off. They also stayed in cash when the market rebounded. But market timing does not work. Buy and hold; that builds wealth. Sitting on the sidelines is costly. Get in and stay in for the long run.

Mortgage rates are much higher than last year. But it's hard to buy when home prices have only fallen slightly. If a recession hits, maybe both interest rates and prices fall. That will help some afford a home, but some poor buyers will then lose it all, both their job and home.

Experts often tell us it's a bad time to invest; wait till times are better. But, waiting just increases the risk that you'll never start investing or that you will stop for a long time. There are always threats. Start now and keep saving and investing, come hell or high water.

What others see as a threat could be an opportunity. When people are fearful and just want out of the stock market, regardless of the cost, it is often a better time to buy than sell. When everyone panics, it may be time to buy low. You profit when you go against the grain.

The Federal Reserve jacked the interest rate up from 0.25% a year ago to the current range of 4.25%-4.5%. That sounds high, but in the early eighties the Fed raised the interest rate to 20% to stop inflation. That makes today's mortgage rate of 6.92% sound tame. It's relative.

When you retire, your Social Security checks are based on a formula using your pay from your 35 highest income years. If you had no income some years, the SSA puts zeros in the formula. If your income falls or stops, your payout may suffer. Long employment gaps can really bite.

Male investors take too much risk; women too little. Men have too much confidence; women too little (even though women are better investors). Women hold too much cash, earning meagre returns. Men lose money buying crypto and startups. Women make money buying index mutual funds.

Joyce Joyce found married women have more financial security and wealth than single women. Married or not, at 65 women's financial situation often worsens. The end of a marriage is likely to result in financial hardship. Elderly single women are most likely to live in poverty.

My cousin's unemployment benefits expired over a year ago. She applies for tons of jobs and lives off retirement savings, which means paying taxes and fines. Unemployment ruins lives and families. It can also wreck your retirement. Better to be underemployed than unemployed.

Some decisions hit hard. A friend had 3 children in his 50's. He died young, leaving his wife to raise 3 kids. As teens the kids got jobs to help pay bills. None went to college. Although you can die at any age, many risks rise with age. Think it through and plan for the worst.

In 1983 Congress raised the age to qualify for full Social Security benefits from 65 to 67. Now some Republican politicians propose cutting Medicare and Social Security benefits, as well as raising the age to qualify for full S.S. benefits to 70. Damn! Who can afford to retire?

In 1983 Congress raised the full retirement age from 65 to 67 since the Social Security Trust Fund was in trouble. Now people are retiring later, but there is more trouble ahead, so Congress may make more changes to Social Security. Life's expensive, but retirement ain't cheap.

The CEO of TIAA warns us 40% of retirees risk running out of money. The Motley Fool found that only 55% of Americans who aren't retired have a 401k or 403b and 25% don't have a retirement savings plan. They also found that the average retirement account has $65K. Trouble brewing.

Crypto fans think it can make them rich fast, but wise investors build wealth over decades, not days or months. Older investors have lost faith in crypto, but not youthful ones. But better to get rich slowly, buying stock over decades. It's tried and true. Buy quality, not crap

I got my wish-one more bear market. Bears offer a chance to buy low, with lots of bargains. When the bear ends and a new bull begins, your portfolio's value will rise nicely. So buy aggressively while the bear lasts. Don't let fear paralyze you. Buy now and wait for the bull.

Many fear the Fed will raise interest rates so high it will destroy the economy and make stock prices plummet. Fear can make us sell when we should buy. Don't let emotions cost you. Buying opportunities abound and markets tend to rise at year-end. You'll be glad you bought low.

Crypto values have tumbled, but the number of cryptocurrencies has jumped to over 10,000. Soon there will be 20,000. But, crypto has no intrinsic value. SEC Chair, Gary Gensler, says crypto must be regulated. Would that make Warren Buffet buy? No. What should you do? Just say no.

Comet says 42% of Boomers have nothing saved for retirement, even though many are in their 70's. Most aren't rich, not even the savers. Boomers’ median retirement savings is $202,000, which won't go far, providing $673 per month from age 65 to 90. No Paris vacations. Just bills.

September is known as the worst month of the year for stocks because markets have declined more on average than in any other month. But that's good for you. If you save and invest regularly, you pick up bargains. So, don't fear September or market declines. They make you rich!