There’s a lot of noise out there masquerading as “investor education.”
Unfortunately, the majority of market-related media don’t help you make better decisions about your money.
You can find plenty of headlines with scary predictions about the economy, market direction, the political landscape and global events.
Do you ever see a headline predicting that investors will become optimistic, all at once, and you better get onboard? There were plenty of times those predictions would have been accurate. For example, early 2009, right before stocks rebounded from the financial crisis.
Or how about in early 2013, right before U.S. stocks went on a tear? You didn’t see optimistic headlines then; instead, you saw plenty of scary news about the Fiscal Cliff, and how Washington was going to tank the U.S. stock market.
These news stories have the effect of pushing investors toward speculation, market timing, stock picking and other bad habits.
If you’re constantly betting on the market’s direction, who benefits? Brokerages, financial TV channels and publishers of the stock-trading and market-timing services.
Who doesn’t benefit? Investors, who tend to make the wrong bets at exactly the wrong times. Learn why Investors should stop trying to beat the market.
Making better money decisions has nothing to do with speculation, and everything to do with understanding your goals.
Why do you invest? It’s not so you can be “right” when you make a good guess about the market’s direction. It’s to pay your living expenses once you stop working, or to pay for your children’s or grandchildren’s educations, or some other specific item you are saving toward.
This requires a decision to be disciplined, and to tune out the never-ending drumbeat of bad news.
Remember: Bad news sells. The mainstream financial media are more successful when they scare you, than when they educate you.
Here’s a video from our partners at Dimensional Fund Advisors, which explains the power of participating in markets over the long haul.
Better Investment Decisions
We don’t engage in the folly of attempting to pick stocks, time the market or jump into an investment that’s been performing well. Instead, we design a portfolio especially for you: What are the goals that you hope to achieve? How long do you need your money to last? How nervous do you get when markets tumble (and the news media act like the world is ending)?
We have partnered with Dimensional Fund Advisors to develop portfolios for the long term.
Too often, portfolios consist of a haphazard collection of investments, with no real understanding of what each holding is designed to do, or why it’s even there!
We believe you deserve a more comprehensive approach. We consider your money decision-making to be an ongoing project. People don’t wake up in the morning saying, “I need a financial plan!” Instead, we find ourselves making ongoing decisions about our money.
Will my money outlast me, or will I outlast my money?
Do I have enough money to retire?
Can I leave something to my family?
What will I do if the market goes into another free fall?
How can I tell if my investments are really diversified?
Should I hold more cash? Less cash?
Should I be investing in the new technology stocks that everyone is talking about?
Should I own more bonds as I get older?
Can I even trust markets anymore?
Should I just keep everything in certificates of deposit?
Every day, we guide clients through these decisions.
Better Money Decisions uses what’s called a “passive” approach to investing. Our clients’ portfolios contain not only U.S. stocks, but stocks from developed markets, such as Europe and Japan, as well as emerging nations. Clients hold small stocks, large stocks, as well as those classified as “value” (beaten-up stocks with room to run) and “growth” (companies growing their sales and earnings at a faster rate than the general market).
Important investment decisions are not just for the wealthy! Everyone needs the reassurance that they are making the best possible money decisions, and investments are part of that equation.
To schedule a time to discuss your investment decisions, click here or call us today at (844) 507-0961.
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Better Money Decisions ADV / 844-507-0961
Better Money Decisions, LLC, may transact business only in states in which it is registered, or in which it is excluded or exempted from registration. Better Money Decisions, LLC, is currently registered in the State of New Mexico.