The old stock market adage of "Sell in May and Go Away" has its roots in the idea that many wall street traders and other money managers will usually take a vacation in the Spring/Summer months and therefre returns are far less in that time frame than the November to April returns. With the advent of automated trading and discount online brokerages, this saying is far less true, but there are some aspects that should "go away".
One way to approach the concept of May is to "Go Away" from all the investing and financial planning you ususally do. What I mean by this, is that you should pretty much have your retirement planning on autopilot, and shouldn't have to do much in this regards besides the occasional portfolio rebalancing. With that in mind, it is definitely harder to stay indoors when the weather is nice out. So, wait until November to rebalance your portfolio or make a bulk contribution to your IRA.
All work and no play will leave you drained. Everyone tries to take a vacation when the weather is nice, but intead of asking yourself where you want to go, think of a vacation that will provide the least amount of stress. Booking airfare, traveling, and seeing family can all be great sources of stress to different people. If you are living an active and busy life, finding time to unwind and de-stress is a rare opportunity. Instead, think of a vacation that will leave you reenergized and ready to come back.
Summer time is also the perfect time for our teenager or child to start to learn about the working world. Many times, parents will leave their teenager to their own devices to find a summer job. These kids have never had to find a job, and usually don't know the first thing on whether there are good opportunities out there. You should take the time to help your child find a good job or internship. It my seem like a mild source of improvement now, but it will pay off later in life.
Whether you go away in may literally, financially, or even mentally, the late Spring and Summer weather gives plenty of opportunities to reenergize your life. Think smart, focus on a couple, and improve your life!
Wonderul Moment of the Day: Just bought a rope chain saw, and am excited to cut down some high over-hanging branches.
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