Stop Emotion from Shortchanging Your Investments
So how can constant screen gazing ruin your financial well-being? Simply put, screen junkies let their emotions ruin their money and their lives:
Screen junkies live by “analysis by paralysis”. They might think they know it all, but they cannot make a strategic decision for a holistic plan with their current and future wealth. They ignore the idea of strategic planning and live by emotion instead.
Some of them worry more about basis points than big dollars. They have a warped concept of how the different buckets of their wealth are supposed to work for them. What they should put in the bank, they end up putting in higher risk investments (even real estate). Where they might invest more aggressively when they will not touch it for years, they leave in cash that earns next to nothing.
Some of them are vulnerable to “get rich quick” schemes in a desperate effort to catch up when they did not plan or save. Someone often “gets rich quick”, only it is not them.
We are here to help people who realize “hope” and absence of planning is not a strategy.
“Managing” by emotion
When markets are toppy, they get excessively excited. When markets are choppy, they sell at the bottom. Why such illogical behavior?
Without a solid discipline, we are all capable of making foolish mistakes. The reality is that most American investors invest emotionally. And they pay dearly for such emotion.
According to research firm Dalbar[source], the average investor in America with $100,000 in 1996 lost over $150,000 in potential gains over the last 20 years just by relying on emotions to jump in and out of the market. (Click here to find out why.)
Let us help you to keep your emotions in check regardless of what the market is doing.
Be an investment lemming.
Others trade, not invest, based on the latest tip from CNBC or their neighbor. All of their office buddies bought into the hottest illiquid alternative, so they should do the same, so they think. When the Uber driver is giving the latest stock tip, they go “all in” on the penny stocks. They also make sure to listen to all their friends who are following the herd and tell the others who have not heard. Cocktail parties, not sound discipline, drive their portfolio!
Who do you want to be: a screen gazer or the wise farmer? Let us help your family to succeed with discipline, not fail with emotional screen gazing.