Scott Stauffer shares more on the right risks to take when it comes to investing. In order to get a better concept of how to take the right risks, we have to understand the common mistakes people make. Learn more about Step 5 of the 10 Steps to a Better Investment Experience in this podcast:
In this episode, Scott shares the fourth step of the 10 Steps to a Better Investment Experience. In this step “Let the Markets Work for You”, we will discover how using a glass of milk, and to be specific, seven tablespoons of milk, will help you better understand how to let the market work for you. Learn more about Step 4 in this podcast:
Scott Stauffer shares why trying to chase past performance has left many investors disappointed, and how studies have shown that the past performance of a money manager does not ensure their future success. Scott also shares his insights on why it is better to let the market work for you instead of chasing a money managers past performance.
Learn more with Scott Stauffer and his team at Better Wealth in this podcast.
10 Steps to a Better Investment Experience
Scott discusses Step 2 to a Better Investment Experience – Don’t Try to Outguess the Market. In this podcast, Scott shares how trying to outguess the market, can be related to a jar of jellybeans, and how we need to change our mindset from what we have originally been taught when it comes to investments. Learn more in this podcast with Scott Stauffer.
When it comes to investing, things can get complicated very quickly. But it doesn't need to be that way. This is the first in a series of podcast called "10 Steps to a Better Investment Experience" which offers ten ways to improve your experience with investing. Step #1 is Understand Market Pricing and one of the best ways to understand market pricing is a take a closer look at how a pencil is made. In 1958, Leonard E. Reed published an essay about the combination of miracles needed to create a pencil. We can relate that to the work of Eugene Fama called the Efficient Market Hypothesis. Fama wrote that professional investors trying to beat the market through stock picking always had a poor record. Why is that? Well, that’s where the pencil comes in.
Podcast notes can be found in our Blog Post click here for more details
One of the first things to consider when talking about retirement, is people’s goals and concerns. What idea do you have about retirement? Where do you want to go? How do you envision yourselves after retiring? There are a lot of things to consider and look at. In this Episode, we start with the questions you need to answer to uncover, all aimed at answerring the bigger question, "Can I retire?"
Successful people are usually successful because they are willing to do the things that other people are not willing to do. It’s not necessarily because they are smarter – but mostly because they have the discipline do the simple things really well. Building wealth is similar. You don’t have to be smarter. You just need to have a plan and stick to it. You need to learn to save and invest. You need to be disciplined.
Some of us can lose weight without consulting a nutritionist. Many of us can get into shape without the help of a fitness instructor. But most of us would lose more weight faster and get in better shape sooner if we had a team supporting us.
This team would consist of professionals who knew more than us about nutrition and exercise and were really good at teaching what they knew so that we could apply it to our lives.
Choosing the right team for you does matter so that you are on track, in control and achieving what matters.
One of the best tools available to help investors build their wealth is an Investment Policy Statement (IPS). Generally, an IPS is a written document that should articulate your goals, outline how you are going to attain your goals, identify your desired asset allocation and provide the information necessary for tracking and making sure you are on track to attain your goals. Your IPS should not be a cookie cutter template used for any investor with the same model portfolio.
Trying to make sense of the investment headlines we read in newspapers, magazines and various investment publications can confuse the best of investors. Our rule of thumb is if you can’t control it, then don’t worry about it. Understand that it is normal for the market to go down. What you don’t want to do is change your long-term course based upon fluctuating, short-term data.
This is why it is so important to identify your long-term goals and write them down. When people follow their natural instincts, they tend to apply faulty reasoning to investing. They tend to follow the crowd and more often than not, the crowd is wrong.
Every investment incurs a cost to be created, managed, distributed and regulated. Some of these are costs are transparent, easily identified and comparable. Others are not. I wish there was an easy way to make sure every investor knew the costs of their investment portfolio and whether it is below, at, or above average. One of the best questions you can ask any financial advisor, brokerage firm, custodian or financial representative is “How do you get paid?” Then probe further, “Is there any other way that you get paid?” Keep on asking that same question over and over until you understand how everyone gets paid.
In the long run, you want to align yourself and your portfolio with low-cost or cost-effective investments and advisors. You want to work with people and firms that have a clear fiduciary standard to put your financial interests ahead of their own. You want to find good coaches and teachers who can help you reach your goals and are willing to be transparent at every step of your journey about how they are compensated. Ultimately, you will need to decide if the investments they recommend and the services they provide are valuable to attaining your financial goals.