A reduction in movement on our end as investors returns profits otherwise intended for Wall Street and money managers and places it back with the investor. This is called Passive Investing.
Wall Street (and Advisors!) position themselves…. as experts, those with training, knowledge and experience beyond that of the investor. Therefore they can do three things:
We are expected to pay them for these skills and access to their expertise.
So what? The truth is the exact opposite. No one can predict the future. Markets are efficient and their movements are random and unpredictable. Nobel Prizes have proven this. Therefore we can conclude that moving into and out of the market, stock picking and basing our investment decisions on managers who have performed well is the exact philosophy Wall Street has manufactured for you. You are doing exactly what they want.
“….is the beginning of Financial Rest. In addition to the 20 Must Answer Questions, it is imperative to examine your investment decisions. Let us be clear, you will not be left alone after answering these questions:
How do we apply a simple but hard strategy? The answer is and always has been, discipline. Similarly, how does one lose weight? Eat less and move more. Simple but hard. Investing takes discipline because the right way does not always feel like the like right way. The allure of Wall Street combined with our fears is a formidable opponent. Whether you are beginning to invest or about retire – it is not too late. You can still apply a disciplined strategy that will create financial confidence. We would be honored to help you do this.