It’s only natural for someone invested in a poorly performing active equity mutual fund to wonder if it’s time to make a change. Should an investor sell a fund if it trails its benchmark for a year? Three years? Five years?
What if I told you that there’s a formula that is exceedingly easy to remember and could positively impact almost every decision you make? What if I told you that there is a formula for happiness?
Consider something you’ve always wanted to do but you’ve put off doing because it scares you. In fact, just think of something you’d eventually like to do but haven’t yet, since you may not even be aware of all your reasons for not having embarked on that journey just yet.
Theory tells us that humans are generally rational beings and that they make decisions from an optimal perspective. This podcast discusses how the concept affects the investment decision-making process and how advisors can use a client’s biases to lead better conversations.
Investment time horizon is a critical concept in building wealth. Most investors have very long investment time horizons, typically decades or more.
It is my hope that as we are better able to map the landscape of love and money, we will increasingly have a scaffolding for having better conversations about where and why our attitudes may differ.
We are experiencing a new peak in the rhetoric around trade, geo-politics, the economy and the business cycle. We have also seen increased market volatility.
Have you had a disagreement with a loved one recently about money? If so, you’re hardly alone. An American Express survey found money took the top worry spot among married couples (33%), far outpacing the second-place intimacy (11%), children (9%), and troubles with in-laws (4%).
For many years, the prevailing advisory remuneration model has led financial advisors to look at just one variable – investable assets – when deciding whether or not to work with a client.
“Now’s not a good time to invest,” or “I’m waiting for the right conditions” are familiar refrains we hear from investors and advisors alike. Fortunately for long-term investors who don’t take regular withdrawals from their portfolios, the sequence of returns doesn’t affect the ultimate investment outcome.