The Stock Market Doesn’t Have to Feel Intimidating

Things I Wish I Knew Sooner: Episode 6

The usual disclaimer: I’m not a financial advisor, and this isn’t financial advice. I’m sharing what I’ve learned from my own experience.

For years, I had no idea what my invested money was doing. I knew I had accounts. I assumed the money in them was probably fine. It was somewhere doing… you know, money things.

Then a few years ago, I started paying attention—and it became somewhat of an obsession to learn everything I could. I got so carried away I even dabbled at the thought of staying home and becoming a day trader! P.S. I’m glad I didn’t. I was checking accounts, following the market, buying low, selling high, and watching the trends. My money had been living a secret life, and I wanted that to change. 

I’ve always liked keeping up with trends—in fashion, in music, and that transcended into the market over the past few years. I’m curious about what’s new and where things might be headed. But I’ve also learned not to bet everything on the trendiest company. I have learned to look for the “picks and shovels”—the companies that help supply the tools and services behind a bigger trend. That phrase might be new to you. It was new to me, too.

The same was true of diversification and rebalancing. A few years ago, those weren’t part of my vocabulary. Now I know they’re useful ways to think about spreading investments around and checking that your mix still makes sense. I’ve also learned not to panic. The market can be extremely volatile, so I try to keep my long-term goals in view instead of reacting to every dip.

Are you still with me? I know this can sound boring but I promise you, it isn’t. You don’t need a ton of money laying around to invest to get started. Log into your 401K account and check on the funds that your money is invested in. YOU CAN MAKE CHANGES! 

This all really started when I checked a 401(k) I’d rolled over from an old job and discovered the money wasn’t invested. And I got mad. I mean, we have a financial advisor. How could this happen? But I was really mad at myself for not paying attention. It had been sitting there quietly while I assumed it was out working hard for me. It was like my retirement money had taken an extended non paid vacation. And I had no idea.

That got my attention. And I went into high gear to make sure nothing like that happened again. I tracked down every account we have and made sure I knew exactly what it was doing and made a lot of changes to accounts that had been neglected. Something I wish I’d done sooner. 

Now friends sometimes ask me questions about the market. I love that they feel comfortable asking because I wish someone had told me and I’m happy to help. I also have close friends who still know almost nothing about it, and sometimes I want to gently shake them and say, “Please, find out what your money is doing!” Gently. With love. And maybe with a spreadsheet.

I know people’s eyes can glaze over when the stock market comes up. I can actually see it happen. But maybe it feels boring because it feels confusing. You don’t need to understand everything to start paying attention.

And now that we’re in our second half, it matters more. We’re closer to the time when we may actually use the money we’ve spent years saving. Retirement used to feel like a faraway problem for Future Me. Well, Future Me is getting closer, and she would like Present You to check on your accounts.

And here’s what I wish I’d known sooner: I wish someone had helped me get comfortable with all of this when I was much younger. When I think of the compounded interest I lost along the way,I wish I could go back and give my younger self a shake. Since I can’t, I’m determined to help my kids. I practically force them to keep money in a high-yield savings account, contribute to a Roth IRA and their workplace 401(k)’s to get the full match, and even open their own brokerage accounts. I may be a little overly persistent if you ask them. Let’s call it loving financial encouragement.  I’m making sure they know what I wish I’d known.

I’m still learning, but the topic doesn’t intimidate me anymore. I follow what interests me, ask questions, and check that my money is actually doing what I think it’s doing. I’m not afraid to make a move and in the market for the betterment of my accounts. The biggest reward is seeing those changes pay off.

Just because you “have an account” and “your money is invested”  doesn’t mean you don’t have to pay attention. My old 401(k) would like you to know that.