Less Decisions = Better Performance
One of the most important goals you can set for yourself as an investor is to shift the power of making decisions from the salesperson to you and your family. Then, resolve to make fewer decisions. Your portfolio will generally only improve over time.
This isn’t easy, but there is a theme that’s important to understand: You’ll never be as educated as the financial professionals who are trying to sell to you. You’ll always be at a disadvantage.
But if you keep your process simple, you will have less moving parts in your financial plan. That means less things to manage, less decisions to make, and more time to focus. You will have a great outcome. If it’s complex, and there are a lot of moving parts you don’t fully understand, then you are destined for a negative outcome.
Unfortunately, most people are misled, thinking that the shiny object is better. Those fancy investment programs, they are typically not the answer. So what should we focus on? There are really two pieces to this: the investments themselves and controlling your personal spending. Create simplicity and be effective.
Making mistakes is easier than you think.
My goal for everyone I work with is helping them attain personal fulfillment. Most of us want to follow the road travelled by those who are wealthy. Sometimes it’s the wrong road. Sometimes it’s the right road. So it’s important to ask, “Am I happy? Am I fulfilled? Am I experiencing my life and doing the things I want to be doing?” Or, “Am I driven by another agenda?” Maybe that agenda is from your parents or society, but are you fulfilling what you’d like?
What’s the point of having, and maintaining wealth, if the improper pursuit of it decreases our happiness? My goal is to support your journey to financial freedom in a way that is intertwined with happiness.
Investment advisors will hit you with a lot of data. They’ll encourage you to buy or sell based on their insights and supposedly the experience that you are paying them for. Really, though, this is how financial advisors make money – by persuading you to make more decisions based off their recommendations.
A Morningstar study shows people who put their money into index funds and leave it there are making fewer decisions than people who work with money managers. And that leads to superior returns over time, according to Morningstar’s research.
The key to this is that investors who are constantly making decisions tend to buy and sell at the wrong times. As a result, they see a lower rate of return than people who make an investment and leave it alone.
I’ve pulled together a wealth of resources to help you understand these concepts. Maintain your assets while reaching true fulfillment. Learn how to avoid the mistakes that even millionaires make. Develop confidence in making financial decisions. Together we will demystify the investment landscape.
Life is short. Might as well strive for security and happiness, especially when there is a resource to save you time, which is one thing more valuable than money. Take a look: https://www.walterclarke.com/
This information does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information is a recommendation to invest in any securities. By using this information, you accept our Terms of Service and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in loss. Full Disclosure. Walter Clarke is not a licensed investment advisor and this content is for informational purposes only.
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