Wealth and Wisdom: Week of April 14, 2025
- Mike Brown
- Apr 14
- 4 min read
I’m reluctant to talk about anything in the news anymore, knowing that by the time this weekly newsletter gets to you each Monday, circumstances will have changed again – and likely more than once. The only certainty these days is more uncertainty.
The best advice I can give investors in times like these – when each day brings something new to worry about – is to shift your focus to those things that never seem to change. For example, the world’s most successful companies get that way because of their ability to adapt to change. They keep innovating, researching, growing – navigating their way through tariffs, regulations, and evolving consumer tastes. They are doing it as you read this.
As a result, these companies continue to grow their profits and increase the dividends they pay to their shareholders, becoming more valuable enterprises over time. Collectively, those rising profits and dividends lead to economic growth, which is ultimately reflected in higher stock prices.
But you don’t see these things when you remain focused on today’s headlines. The financial markets – especially when things are as chaotic as they are lately – are driven not by these fundamentals, but by emotion. And when emotion overcomes reason, investors are tempted to make The Big Mistake of selling out their portfolio to stop the pain – converting short-term volatility into permanent loss.
If you are to succeed as an investor, I urge you to focus your attention on those things in your financial life that don’t change every day. The day your child or grandchild starts college. The day you plan to retire. The amount of income you need from your portfolio – which will cease on the day you panic and sell.
I’m as concerned as you are about the daily nonsense we’re all living through. But my financial goals haven’t changed one bit as a result of it, and neither has my strategy.
This too shall pass.
Your success as a long-term equity investor depends on the decisions you make during the market’s current downturn. (Reading time: 5 minutes)
History shows that tariffs and trade wars cause prices to rise, jobs to be lost, and economic growth to slow. Why are we doing this again? (Reading time: 4 minutes)
Debt among older Americans is reaching dangerous levels – and it’s not just from mortgages. (Reading time: 4 minutes)
Here’s what you need to know about Social Security, taxes, and your investments if you are considering a return to the work force. (Reading time: 6 minutes)
When creating your retirement spending plan, think beyond greens fees and airplane tickets. (Reading time: 8 minutes)
These one-decision mutual funds are wildly popular in 401(k) plans – but if you want a more customized approach, you can probably do better. (Reading time: 4 minutes)
If you’re willing and able to pre-pay their taxes at today’s rates, Roth IRA conversions can be an effective strategy. Just know the downsides. (Reading time: 2 minutes)
Here’s a step-by-step primer on how and when to file for Social Security retirement benefits. (Reading time: 7 minutes)
If you’ve taken my class on how to retire, you know how I feel about annuities. That doesn’t mean you shouldn’t consider them. (Reading time: 5 minutes)
Tax season is an optimal time to get your financial life in order. Start here. (Reading time: 3 minutes)
Words to the Wise
“It is the undisputed lesson of market history: Those who tell you how and when this will play out for investors will be wrong. Exit timing and re-entry timing are fool's errands. Receiving growing dividends through the entire process are the rewards for investors who took on that risk-reward tradeoff.”
– David L. Bahnsen
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Roth 401(k) plans are long-term retirement savings vehicles. Contributions to a Roth 401(k) are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72 (70 ½ if you reached 70 ½ before January 1, 2020).
