15 Investing Axioms
Here are 15 things to be aware of when making decisions about your personal financial planning and investing.
- Financial planning is about providing for future family financial security… nothing else
- Losses hurt more than gains benefit
- In many cases, you may not get an opportunity to recover from a loss
- Cash-flow needs and timing should drive investment decisions, not desire for asset acquisition
- Don’t assume a greater risk than you need to
- Risk avoidance, in general, is not possible and uninformed choices of what risks to avoid will not typically get you where you want to – and need –to be
- Before making any investment, always ask, “What happens ifthese choices turn out tobe wrong?”
- Make realistic goals and use them to lead your decisions
- Interest on credit card debt is the cost of past excess spending or consumption – pay your balances down and reduce interest
- Investing decisions should not be made emotionally
- Money and stocks are inanimate – don’t form attachments.
- Just because everyone seems to be doing something doesn’t make it right for you
- You are not “everyone,” “average” or “like most people” – you are “you” and you are “unique.” Know what’s in it for you when you invest
- You are the most important person in the world to you. Only deal with advisors that treat you that way – always!
- Don’t be stupid!
How Can We Help?
