Welcome to the Jungle - Things to Watch Out for in 2016

The Ostrich Effect 

Bean counters have actually done a study showing that nearly half of us don’t know how much money we will need in retirement. Is this myth or truth? What is a myth is that the ostrich doesn’t actually bury its head in the sand, but it may appear that it does. Either way, if you don’t know how to determine what you will need in retirement, seek the help of an investment professional.

Kiss Frogs 

Kiss a lot of frogs to find your prince (or princess). We all know why we don’t want to keep all our eggs in one basket. What you may not know is that some forms of insurance got started this way, by spreading the risk over many baskets (um, ships) and not just one. In the investment world, this is called diversification, and there are many ways to do it. Make sure you know how.

Multiply like Rabbits 

Multiply like rabbits, but not in the way you might think! I am actually talking about the power of compounding. A little-known fact about compounding: all money is not created equal if invested over different time periods. Tell your college grad that investing $4,000 at age 20 and earning 10% a year until age 60 would give him a nice retirement fund of $181,037—but if he were to wait to invest the $4,000 at age 30 and earn the same 10% a year until age 60, he will only have $69,798. Now that is nothing to sneeze at, but wouldn't you rather have bucket one? That is a simplistic example of the power of compounding.

Counting Sheep

Don’t be a sheep and follow the herd—they may be going in the wrong direction. If you are investing in a good strategy, know that every good strategy still has its issues. So, be aware of the normal fluctuations of your strategy and hold the course. If you can’t, you may be in the wrong strategy. But course correction is often the reason why many of us don’t get the same returns over time, because we didn't hold the course during the normal fluctuations of our investment and see it through. Working with your financial advisor may help you overcome your fears and make the right move.


Just as successful athletes rely on coaches and trainers to help them achieve their goals, most investors can probably benefit from having a "financial coach" to remind them about their New Year's resolutions and keep them on track toward a more prosperous future.

Wishing you and your family good health and good wealth in 2016!


                                                    Your Team at BMM

.....Because Money Matters

Investment advisory services are offered through Berson Money Management, a registered investment adviser offering advisory services in the State of California and in other jurisdictions where exempted.  This article was provided by courtesy of Dimensional Fund Advisor LP, an investment advisor registered with the SEC. This communication is not to be directly or indirectly interpreted as a solicitation of investment advisory services to residents of another jurisdiction unless otherwise permitted.   The contents of this email and any accompanying documents are confidential and for the sole use of the entity to whom they are addressed.   They are not to be copied, quoted, excerpted or distributed without express written permission of the firm.  Any other use beyond its author's intent, distribution or copying of the contents of this e‐mail is strictly prohibited.  Nothing in this document is intended as legal, accounting, or tax advice, and is for informational purposes only.