Pursuing a Better Investment Experience (Part 5)

Welcome to the pursuing a better investment experience series. We are going to review two topic points regarding market headlines and what you can control, let’s get started.

Look beyond the Headlines  

The First Point – Look beyond the Headlines

Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future, while others tempt you to chase the latest investment fad. When headlines unsettle you, consider the source and maintain a long‑term perspective.

  • News and financial commentary can influence people’s view of investing. Without a strong investment philosophy to guide them, they also may follow the advice of friends, neighbors, or family, especially if the “insight” promises a fast, easy return.
  • But growing wealth has no shortcuts. Success requires a solid investment approach, a long-term perspective, and discipline to stay the course.

Focus on What You Can Control

The Second Point – Focus on What You Can Control

Avoid reactive investing:

  • Create an investment plan to fit your needs and risk tolerance.
  • Structure a portfolio along the dimensions of expected returns.
  • Diversify globally.
  • Manage expenses, turnover, and taxes.
  • Stay disciplined through market dips and swings.

A financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.

  • To have a better investment experience, people should focus on the things they can control.
    It starts with an advisor creating an investment plan based on market principles, informed by financial science, and tailored to a client’s specific needs and goals. Along the way, an advisor can help clients focus on actions that add investment value, such as managing expenses and portfolio turnover while maintaining broad diversification.
    Equally important, an advisor can provide knowledge and encouragement to help investors stay disciplined through various market conditions.

Overall, the two key points to remember are:

  • Look beyond the headlines and
  • Focus on what you control

This concludes the final video of the Pursuing a Better Investment Experience series. To learn more, check out our other videos!

Disclosures

Diversification does not eliminate the risk of market loss. There is no guarantee investment strategies will be successful. For illustrative purposes only.

The information in this document is provided in good faith without any warranty and is intended for the recipient’s background information only. “Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. Please click here to read the full text of the Dimensional Fund Advisor Disclaimer.

About the Author Doug Finley

Douglas Finley, MS, CFP, AEP, CDFA founded Finley Wealth Advisors in February of 2006, as a Fiduciary Fee-Only Registered Investment Advisor, with the goal of creating a firm that eliminated the conflicts of interest inherent in the financial planner – advisor/client relationship. The firm specializes in wealth management for the middle-class millionaire.

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