We are often our own worst enemies when it comes to investing. Much of the difficulty can be traced back to the “lens” through which we view the markets and our goals. Lack of clarity with financial goals often leads to lack of clarity about investments. If all we are seeking is “more returns”, we are likely heading for trouble.
Connecting the Dots
Many, if not most, successful individuals have a “financial advisor” who provides some of the explanation for how investments are understood. The problem is most advisors, in reality, are only investment advisors and not comprehensive financial planners. A large part of how we “win” at investing starts with connecting our goals with our resources. If the investments are operating independently of our financial objectives (as is often the case), then we can’t really “win”.
Instantaneous financial information has heightened the importance of not reacting to short-term market noise. If we are constantly looking at our investments, chances are good that we are going to want to “do something” one way or the other. I recall being interviewed by a financial magazine many years ago and the interviewer asked about my personal retirement plan allocations. I told him that it might not be relevant because, 1. I was (at the time) somewhat young and 2. I didn’t look at the allocations more than once per year so that I would not be tempted to adjust to short term events.
We Can Help You “Get out of Your Way”
Part of our value in client relationships is we help filter out the noise. In essence, we are helping clients “get out of their way” so that long term plans and strategies can work. This tends to be liberating to clients and allows them to relax and achieve greater clarity about real life financial goals. Achieving financial independence doesn’t happen by accident. We have to be careful not to complicate the matter.
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