Apprise Wealth Management's Selected Readings for the Week of November 19, 2018

Personal Finance

November 20, 2018
Personal Finance

At Apprise Wealth Management, we want to help people make better decisions about money. We also read constantly and like sharing some of the commentaries we enjoyed reading the most each week.

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We hope everyone reading this post has a Happy Thanksgiving and is able to spend some quality time with family and friends during the holiday break.

Here are this week’s articles as well as a brief description of each:

1.   10 Biggest Financial Mistakes Doctors Make. Learning from (rather than repeating) the mistakes of others is often good advice. You do not have to be a doctor to benefit from the advice provided in this article. Following these suggestions can help you move faster on the path toward achieving your financial goals. In the same vein, when you make mistakes, sharing them might help those you know as well.

2.   For the first time, researchers say Facebook can cause depression. Do you spend a lot of time on social media sites like Facebook? Psychologists at the University of Pennsylvania conducted a new study showing – for the first time – a causal link between time spent on social media and depression and loneliness. The research found that reducing time on social media significantly decreased feelings of depression and loneliness among participants. While the study did not specifically analyze why participants felt this way, two explanations were offered:

·        Fear of Missing Out or FOMO.

·        Downward Social Comparison. (“You’re more likely to think your life sucks in comparison” after reviewing your friends’ timelines.)

3.   Your Future Should Be Bigger Than Your Past. Here’s How to Do It. Carl Richards is one of my favorite authors and speakers on the topic of financial planning. His monthly “Sketch Guy” column in The New York Times is worth checking out. When you run into old friends, which do you prefer: reminiscing about the past, or sharing your vision of what the future may hold? Richards argues for the latter. It is hard to get to where you want to be in the future if you do not start thinking, planning, and talking about it now.

4.   The Surprising Power of the Long Game. The short game centers on putting off the hard things in favor of something that seems easy or fun. It is easy to fall victim to the short game. However, if you continually practice the short game, it will have bigger and bigger effects on your long-term outcomes. Instead, you can choose to play the long game – paying a small price today in order to make your future easier. However, if you do, you must be willing to sacrifice something today so that you do not suffer in the future. When deciding to play the short or the long game, it can help to start with things that compound:

·        Knowledge

·        Relationships

·        Finances

5.   How to Read a 10-K Annual Report Efficiently. If you are an investor rather than a speculator and want to hold shares of individual stocks, it is important to gain an understanding of the company you are interested in owning and its business. The best way to gain more than a superficial level of knowledge is to read the company’s latest 10-K filing (even better is to read more than one). A 10-K is different from an annual report in that it does not include the elements of an annual report that are largely included to make shareholders and the general public “feel good” about the company and its management. The 10-K is filed with the SEC annually. Companies also file a 10-Q to report quarterly results. If you are unsure about how to find a 10-K and what to look for when reading one, this post provides a good primer to help you with the task.

 

We hope you find the above posts of interest. If you would like to talk to us about financial topics such as your investments, creating a financial plan, college savings, or your retirement savings please fill out our contact form, and we will be in touch. We can schedule a call, a virtual meeting via Zoom, or a meeting at Apprise Wealth Management's office in Northern Baltimore County.

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