Can You Spot Your Investment Flaw?
December 9th, 2009 // 4:00 am @ Andrew Rosenbaum
The federal government says the country is coming out of the recession. My biggest fear is that, with the market recovery, people with a lot of ground to recover in their portfolios will chase risky high returns again.
But with high-risk investments you will inevitably lose your money. That’s not financial planning; it’s legalized gambling.
A wealth swing coach helps you spot your investment flaws. Investors try to outsmart market volatility. They mistakenly believe they can cash in at the top, then balance their portfolios to preserve their wealth.
They rarely do. Sooner or later, the market will turn down again and they’ll have lost the opportunity.
Trying to outplay market volatility is like trying to control the weather. It’s impossible.
Remember the old expression, “save for a rainy day”? Don’t assume it will always be sunny.
As a golf fan, I like golf analogies. Tiger Woods never tries to outplay the weather. He doesn’t take wild risks. He meticulously measures, plans, and calculates every move he makes.
He starts out playing conservatively and defensively. Only if the weather’s right and only if he thinks he’s playing well does he go on the offensive.
So balance your investments by including assets that will endure no matter whether markets are sunny or stormy, and you’ll be better prepared if other investments decline.
Category : Financial Certainty &Financial Planning &Investing &Market Volatility &Wealth Swing Coach
