Many factors affect the market's performance. Politics is key, but Federal Reserve Policy, foreign events, business reports, and investor sentiment are but a few of the factors which may send the market soaring, crashing, or most often, something in between.
This month saw devastating floods in Houston, North Korean threats and uncertainty, and increased concern regarding Chinese tariffs and trade policies. The market volatility rose in August. None of our investors currently use a financial advisor, but all have in the past. The key to successful investing without one, is to display the same investing discipline an advisor would encourage. In numerous studies, it's been proven that investors in general do a lousy job of managing their investments and underperform virtually all sectors and benchmarks. The main culprit is emotion. Getting scared and making a buy or sell decision based on the news of the day is not an investment strategy! A key to the self-directed investor is to develop a strategy for investing and stick with it.
The fund (Vanguard Dividend Appreciation – VDADX) reversed the July movement and closed the month up 20 cents a share. starting at 25.14 and ending at 25.34. Willie had a month end balance of $196,202. His monthly benefit check would be $1997.10 if he changed his mind and decided to file for benefits at this time.
Irma deposited the $1971 check and withdrew $2365 from her existing account, so her net total is $200,160 ($3958 + $196,202) .
Sam used his benefit check to supply $1552.20 of his monthly expenses. His untouched IRA account sat at $200,951.