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The Siren Songs of Speculation

enables these investors to maximize their ability to capture returns and provides justification for the right advisor. Many investors are lured into do-it-yourself indexing through index funds and exchange traded funds (ETFs). This is a step in the right direction, but without an advisor, I would estimate that those investors have not experienced the full value of passive indexing. Quality passive advisors offer valuable services, such as rebalancing, tax loss harvesting, a glide path strategy, and other wealth management tools that, in my experience, are rarely properly applied by do-it-yourself investors. Step 12 provides more information on these topics.

The Ulysses Pact Homer’s legendary story about Ulysses (Greek name Odysseus) tying himself to the mast to avoid destruction can be aptly applied to investing. Ulysses was able to hear the alluring siren songs without being led to his demise, because he made an agreement with his seafaring crew as they approached the sirens. He ordered them to plug their ears with wax and keep him tied to the mast despite his protests and cries. Under no circumstance were they to untie him. Ulysses desperately tried to break free upon hearing the sirens, but the men kept their promise, and the entire crew sailed safely through danger. They all worked together to strategically prevent their own demise. The lure and noise of the financial media often drive the behaviors and decisions of investors. A Ulysses Pact is like an investment policy statement, a proactive and strategic agreement that is made between a client and advisor. An advisor can guide clients through the murky or turbulent waters and ensure they

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

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