money
don’t listen to THE NOISE what you should really do with your money by Garrett Prom
“Interest rates are rising—get your money out of bonds!” “Start investing now in Frontier Markets” “Inflation will be out of control—trade your US dollars for gold coins!”
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“financial experts.” Investing is not about predicting; it’s about calculated planning, avoiding the pitfalls that most amateur investors make and applying sensible, well-informed guidance on how to make the most of your money. Surely you have many goals on your list, short and long term. You’re probably looking into retiring as soon as possible. Perhaps you want to see your children as Ivy Leaguers. You want to provide your family the home of their dreams, or maybe you want to build a hefty legacy for future generations. The way to achieve these and other ambitious aspirations begins with ignoring all the “noise” floating around us about the economy, politics, the market, etcetera. In the grand scheme of things that’s all this is – just “noise.” It should just be an insignificant blip on your radar when it comes to defining solid, long-term financial goals. Acting on this “noise” is the equivalent of gambling.
ou probably come across headlines like these on any given week. We are inundated daily with news on the economy, the performance of the stock market, politics in Washington and throughout the world. On top of that, we have “financial experts” on networks, newspapers, and magazines offering their opinions on how each individual event will impact our current portfolios and what they expect the next great investments to be. When I was first approached to write this article, I feared my editor was seeking another financial Investing for your financial Nostradamus prediction. Heck, even future isn’t a get rich quick Ignore it all and life will be less if I were wrong, with an interesting stressful, and more importantly, it will enough article, we could still get good scheme. It isn’t about picking prevent you from committing costly readership for the magazine. Isn’t that the hottest stock or market sector mistakes and making potentially what the networks, newspapers and and then selling it to buy the disastrous financial decisions. Make magazines are interested in anyway? next hot one. a conscientious effort to apply this: Thankfully, I was asked to write for When it comes to investing, you the smartest, money-minded group can’t let your emotions get the best of readers I could think of. of you. It’s obviously difficult to watch your hard-earned money disappear like magic when your investments decline, specially if the crashing investment turns out to be the basket you had In reality, investing for your financial future isn’t a get rich quick decided to put all your eggs in. scheme. It isn’t about picking the hottest stock or market sector and then selling it to buy the next hot one. It isn’t about Take the guesswork out and act upon it: Have a welljumping at the chance to sell everything at the peak of the constructed financial plan. You can research as much as you market and then buy again at the bottom. Of course, if we were can on your own and put it together yourself or – what I would capable of accurately predicting these patterns and, by doing advise – hire a professional to give you unbiased, realistic facts so, guarantee how the market will perform to our advantage, and figures addressing your goals and aspirations specifically we wouldn’t need any type of plan or even to read an article like and systematically. Write out your plan and stick to it during this… The reality is that we are not gifted enough to see in to the good times and the bad times in the market. Your account the future, and I don’t mean just you and me. I also mean the balances will go up, and they will go down. Stick with your plan.
investing versus gambling
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