Perfection is also overrated, particularly if it keeps y ou from trying things that are interesting.
In 2011, I’ll continue to juggle many apparently conflicting goals on behalf of my clients.
I want to work in such a way that avoids failure, but when failure comes, make it small, recoverable and learn from it.
Looking forward to a Happy and Prosperous 2011!
Confidence = Good
Arrogance = Bad
Humility = Good
Get it? 80% of making money is attitude and 20% is head knowledge. Make sure you and your adviser have the right attitude.
This week I’m thinking about the human tendency to do something just to be doing something.
I’ve found that we Americans love to solve problems, and if we’re not selling this investment to buy that one, or reallocating something else if feels like we’re standing still.
Are you falling into ‘busy work” or is changing nothing the right answer?
One important lesson in managing a portfolio is:
Take your losses quickly and move on!
We’re all going to make mistakes. The right thing to do is admit it was a mistake, sell the loss, and move on to your next investment.
It’s that simple. It’s what separates the pros from the amateurs.
CLICK FOR FULL ARTICLE – LEARNING TO TAKE SMALL LOSSES QUICKLY
Why? They theorize that drivers try to evade police by lowering their phones when texting, which increases the risk by taking their eyes even further from the road and for a longer time.
Why do I bring this up? Because the unintended consequences of every action should be taken into consideration.
A good think to remember when we’re talking about economic policies–monetary or fiscal.
CLICK FOR FULL ARTICLE – CRASH INTO ME
Is the pain of losing money greater than the joy of making money?
The problem is that most people NEED to take some risk to realize their retirement goals because the rate of return needed is greater than the risk free return.
With inflation, there’s opportunity cost as well.
One of the things I do for clients is work with them to balance these competing desires of growth and principal protection. Call me if you’d like to discuss this in your situation.
Click on the link for a discussion of which is worse–Losing Money or Not Making Enough.