Five Steps for Gaining Control of Your Investments and Avoiding Mistakes
by Carl Richards
We just don’t know what will happen next. It’s a reality that can be hard to handle as an investor.
From fiscal cliffs and debt ceilings to unemployment rates and quarterly earnings, it can feel like we’re just along for the ride. And this feeling that we lack control, combined with uncertainty about the future, can make it very difficult to behave when it comes to investing.
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Your goal for 2013 needn’t be finding the “best” investment or even the next Apple Inc. (AAPL). Instead, you (and your portfolio) should be better off if you focus on the things you can control and implement strategies that help you avoid classic investing mistakes.
1. Get Clear About Today
Does it really matter what the market did today if you don’t understand your current financial reality? Too often we get caught up in the news around investing and forget that the primary source of investing success comes from having a solid financial foundation.
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Discussion
The advice to create a personal balance sheet is priceless.
posted 14 days ago by Jeff Carlson from Minnesota
Very good information. For all the noise in the marketplace and endless amounts of data, the main thing is to focus on our own behavior, timeframe, and investment needs.
posted 13 days ago by James Joslin from North Carolina
I'm a new member but a practicing CFP for many years. Great to see that the very basic net worth is used first. It really is the barometer of how one prioritizes their earned income, commits to savings, how dollars are spent, etc. it's pretty much the first thing I ask my clients to work on. Amazing how few really know the answer.
posted 13 days ago by Peter Jochems from Colorado
Verg good advise, wish I a better way to really tell when the stock market topping out,
The volity swings so rapidly it makes my head swim.
Thanks AAII
posted 9 days ago by Larry Taylor from South Carolina
I found this presentation useful but I was looking for more specific information but in that sense, was disappointed how thie article managed to stay on the sidelines. For instance, I being a retired person, am more interested in wealth preservation and it would have been great Mr. Richards talked about a few ways on how one can get this done
posted 9 days ago by Durai Raghavan from Texas
Lot of psychologizing and patronizing in the article although the whole piece is well organized. Little of practical use or application. Vague platitudes abound. As a previous comment noted, there is hardly much of specifics here as to how exactly all the principles as applied lead to actual investment success. A few examples of actual application can help.
posted 8 days ago by Ramesh Patel from Ohio
I find this to be a very powerful article, thought stimulating and a call for discipline. In the end, discipline will be the ultimate guide.
posted 5 days ago by S Jones-Hendrickson from Virgin Islands
