investing discipline

Maintain Investing Discipline During Retirement

On today’s episode of the Wiser Roundtable Podcast, the team talks about why it is important to maintain investing discipline through retirement. They also go over 6 patterns of irrationality in investing.

Listen on Apple Podcasts or watch on YouTube:


The team begins the podcast by discussing how many studies have shown that people who use financial advisors have a higher rate of return. Maintaining investment discipline is simple, but it isn’t always easy to do because emotions tend to get in the way.

Being a Longterm Investor

Market downturns are not something to be feared, but through maintaining investment discipline, the investments should come back better and stronger than they did before. Sometimes doing nothing can be the hardest part.

6 Patterns of Irrationally in Investing

  1. Overconfidence: Rating oneself above average when it comes to selecting investments. When people are overconfident, they may have had one investment that did well in a given time, but their whole portfolio may not have. Sometimes, people can have overconfidence when it comes to their company’s own stock options. They think their company will never struggle, which is not always the case.
  2. Hindsight Bias: Believing that unpredictable past events in retrospect were obvious and predictable. During those past events, people may have known that they wouldn’t last forever, but that doesn’t mean the event was predictable.
  3. Short-Term Focus: Don’t look at your feet, you have to look out. Many people say they are long-term investors, but they make short-term moves. People get tired of loosing, and switch to bonds or cash, which is a bad short-term move.
  4. Regret: Having feelings of guilt because of a poor outcome. Many people felt this after the great financial crisis. When you have regret, you have to forget about the past, look at the resources you have now and move forward.
  5. Mental Accounting: Mentally compartmentalizing investments while ignoring the aggregate portfolio. You have to take a look at the total return of your portfolio, not just the few stocks that did well.
  6. Media Bias: People often watch the news, see that the markets are down by a certain percentage, and assume their portfolio is down by that much as well. In reality, that would not be normal for your portfolio to reflect that.

Your investment portfolio is simply a way to implement what you want to accomplish financially in the future. Your portfolio should be matched with your financial plan. You have to maintain diversification in order to maintain investing discipline. It depicts what you have, what you want, when you want it, all with a purpose. Knowing about these common biases allows you to be a smarter investor. Maintaining investment discipline through retirement is crucial to have financial success in retirement.


1:15 Being a Longterm Investor

11:25 Overconfidence

14:17 Hindsight Bias

17:45 Short-Term Focus

23:20 Regret

25:10 Mental Accounting

27:33 Media Bias


Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.


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Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.

By Published On: September 1, 2021

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