Financial Planning, Asset Management and Investment Beliefs:
- Most investors will live longer than they think.
- Most investors will not be able to live on earnings only.
- Most investors will need to dip into principal over their lifetimes.
- Most investors do not have nor do they stick to a retirement budget.
- Most investors spend all income they receive.
- Most investors do not stick to their plan.
- Most investors need a greater rate of return than can be provided by banks or the bond market.
- As a result - most investors need some level of investment in the stock market.
- Most investors do not have the patience for the ups and downs of the stock market.
- Most investors are too emotional about the ups and downs of the stock market.
- Most investors let their emotions control investment decisions.
- Most investors have been told two things about the market: A. Buy and hold for the long term, B. Buy low and sell high
- You cannot do both the items in #12 at the same time.
- Buy and hold investing and traditional asset allocation only works in up markets.
- Traditional asset allocation does not consider cash a useful asset.
- One of the best assets to own in a down market is cash.
- All investors are losing compounding periods every day.
- Being invested during major market declines is far worse than missing some of a market advance.
- Older investors do not have enough time to wait for stock investments to recover from major declines.
- Retired investors do not realize the compound impact of a major market decline while withdrawing funds to live on.
- Volatility of returns has more impact in financial success than most investors realize.
- It is better to miss some upside than be fully invested in a down market.
- Rules based investment management reduces the chances of making wrong decisions.
- Nothing is perfect, safe, free, guaranteed, complete, accurate or forever.