Avoiding Investment Mistakes

Intro

We like to think that we are logical, rational beings. We want to believe that we weigh the pros and cons of each decision and choose the most effective course of action before we act. However, when it comes to money, our brains haven't evolved much beyond those of our furry animal friends.

A recent survey indicates that an increasing number of high net worth investors are willing to pay for solid, unbiased, fee-only investment advice and financial planning, which is not surprising considering the challenges of today’s markets and economic environment.

This isn’t our parents’ or grandparents’ retirement anymore. Just a few decades ago, many retirees enjoyed the full benefits of the “three-legged stool” of retirement provide by guaranteed pension payments, savings, and Social Security.

It's my belief that humor can be motivating, draws us together, and allows us to view our lives from another's perspective. I hope you enjoy this assortment of quotes relative to how others have viewed being retired.

“Two weeks is about the ideal length of time to be retired.” – Alex Comfort

It's my belief that humor can be motivating, draws us together, and allows us to view our lives from another's perspective. I hope you enjoy this assortment of quotes relative to how others have viewed retirement.

“The best time to start thinking about your retirement is before the boss does.” - Anonymous

One of the most fundamental tenets of financial planning we faithfully apply in our work with our clients is to Plan for the Expected, and Prepare for the Unexpected. Our many years in practice have provided us with continuous reminders that life-unexpected happens with the potential to derail the best laid plans for the expected.

While our extended longevity should be greeted with gratitude for the possibility of enjoying a longer life with our grandchildren, many retirees are approaching it with trepidation, wondering if their hard earned assets will be sufficient to fulfill their vision of a good life for the rest of their life – however long it should last.

““…inbred human propensities to swing from euphoria to fear and back again seem permanent… generations of experience do not appear to have tempered those propensities…”

–Alan Greenspan, Economist and former Chairman of The Federal Reserve

“Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble… to give way to hope, fear, and greed… The investor’s chief problem and even his worst enemy is likely to be himself.”