5 Critical Steps to a Successful Investment Experience
Published on Nov 21, 2015
Raise your awareness to the key factors that determine whether or not your your investment experience will be a success.
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
5 critical steps to
A SUCCESSFUL INVESTMENT EXPERIENCE
#1: define your personal values
Know what makes you tick
#1: Define your personal values
- List and then rank your 5 most important personal values
- Ask your spouse to do the same
- Identify where your values overlap and where do they not
- Review your list before making big financial decisions
- Communicate when you feel a value is being compromised
#2: create a clear vision for your future
Decide what you want your life to look and feel like
#2: CREATE A CLEAR VISION FOR YOUR FUTURE
- List the top 5 things you want to accomplish in your life
- Estimate how much money these goals will cost
- Estimate your future annual living expenses
- Determine how much money you'll need
- Be realistic and honest with yourself in this process
#3: focus on maximizing happiness
Make sure your financial plan solves for the correct variable
#3: focus on maximizing happiness
- Decide what happiness means to you
- Financial decisions should serve your happiness
- View money as a resource and not as a destination
- Focus on having "enough" rather than "it all"
- Anchor your emotions on your plan, not the markets
#4: define your investment philosophy
Mine is Nobel prize winner Eugene Fama's Efficient Market Hypothesis
#4: define your investment philosophy
- Avoid picking stocks and trying to time the market
- Implement a long-term and disciplined strategy
- Keep your costs low
- Harness the power of diversification
- Don't confuse speculating with investing
#5: Partner with an advisor you trust
Going it alone makes it harder than it needs to be
#5: partner with an advisor you trust
- Without help, your emotions will cost you a lot of money over time
- Find a fee-only advisor so you know they're on your side of the table
- Make sure they focus on your big picture (not just the investments)
- Good advisors reduce anxiety and increase your chances of success
- You'll be able to focus on the stuff you'd rather be doing anyways
