Daily Money - Investing During a Stock Market Bubble

Elizabeth O'Brien is a senior writer at Money

Remember Pets.com? The company was a high-profile casualty of the dot-com bust in 2000, and its name has become a kind of shorthand for a stock bubble. So it should give us pause that Pets.com has crept back into the conversation these days. Why? Because investors are rewarding tech stocks like Tesla by pushing their share price beyond what their business fundamentals might warrant. To use my favorite stock lingo, valuations are frothy. The best way to take some of the fizz out of your portfolio is through diversification. In today’s edition, learn more about creating a balanced portfolio — and not letting FOMO (fear of missing out) get the best of you.

Best wishes,
Elizabeth

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TIMELY RETIREMENT NEWS, INSIGHTS, AND ADVICE

How to Invest During a Stock Market Bubble

Parallels to the early 2000s abound.

Never Go Back to the Office: The 10 Best Places to Live if You Work From Home

No surprise, the top spot is a planned residential community.

Federal Student Loan Forgiveness Programs Already Exist

Why aren't more borrowers taking advantage?

RETIRE WITH MONEY COMMUNITY INSIGHTS

This week in our Retire with Money Facebook group, a member in her mid-30s asked the group for suggestions of what to do with extra cash each month: “We have a solid emergency fund, retirement accounts are being funded at 13% per year of income. We have a $58K student loan, variable rate at 2.25% and a $48K car loan at fixed 3.5%. We have a mortgage also at 3.25%. Husband does not want to increase retirement savings.” She also noted that their parents were funding a 529 college savings account for her child(ren). Many members recommended that she pay down her big car loan, because it’s not great to carry a loan on a depreciating asset. Former Money editor Rachel Elson, who recently passed a rigorous exam to become a certified financial planner (!), recommended investing in a taxable brokerage account: “If you think of your cash as your emergency fund and your retirement accounts as 30-years-out money, think of a brokerage account as where you invest money you might want in 5-10 years - for a kitchen remodel, or a new car (without financing), etc. You'd need a long enough time frame to ride out market ups and downs, but it can be shorter than your retirement funds, and not locked up.”

RETIREMENT NEWS FROM AROUND THE WEB

COVID-19 Vaccine Scams a 'Growing Problem' Amid Slow, Chaotic Rollout

Beware these scams that prey on people’s eagerness for the vaccine. AARP

Here’s How Wealthy Families Will Save on Estate Taxes in the Biden Presidency

Experts predict the new president will be focused on pandemic and economic relief in the first year, buying wealthy families some time. CNBC

OPINION: When Workplace Bias Training Ignores Age Bias

An older professor often fields the question, “When will you retire?” NEXT AVENUE

The Lost Art of Dying Well

An ancient practice can help modern patients achieve a better death. COLUMBIA MAGAZINE

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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Daily Money - Investing During a Stock Market Bubble

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