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.
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.
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.
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
14:17 Hindsight Bias
17:45 Short-Term Focus
25:10 Mental Accounting
27:33 Media Bias
Learn more about Brad Lyons.
Learn more about Matthews Barnett.
Wiser Wealth Management, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.