Find the Investment Strategy That Fits You
There is nothing more dangerous than blanket investment advice. Yet, everywhere you turn you will find headlines giving you just that: the next best, can't miss investment. All your troubles are swept away if you just follow this particular guidance, or buy this specific product.
These headlines sell because they promote a false sense of security and simplicity. People want the microwave approach to solving an issue. But the problem is that proper investment advice is not that simplistic.
The genetic makeup of all human beings is unique; therefore, the way we react and relate to all the various types of investment vehicles will also be unique. Every person has financial goals, thresholds for risk, and attitudes about money that are just as individualistic as they are, and their investments must match these personal traits in order for investing success to occur.
This is because the name of the game when it comes to investing is longevity.
If you're not putting your money to work in a place that keeps you motivated and disciplined, you will inevitably abandon your strategy time and time again. Too often, your money will be in the unemployment line (cash) earning nothing which has a detrimental impact on your odds of long-term financial success. Inversely, if your money is invested in an approach that keeps you engaged and disciplined, chances are significantly improved that you will stick to your strategy over the long haul. This keeps your money hard at work, greatly increasing your odds of long-term financial success.
The folks at Fitbit aired a commercial a few years back that is still one of my all-time favorites. The tagline of the commercial is "Find Your Fit". This is pure genius because it is so true. Not everyone enjoys the same activities, but we all know that being active is important for our health and happiness. The problem is that most workout routines are either painstakingly boring, or just flat-out painful. Only when you find an activity that you enjoy will you increase your odds of long-term success in being active.
The same is 100% true for investing. I love -- absolutely LOVE -- investing for passive income. But I know this approach usually comes with a bit more hands on involvement. This is not motivating for some people, as they would rather spend zero time thinking about or handling their investments. For these folks, an automated investment platform might spark much more enthusiasm and engagement. Some might also find motivation in being hands on with individual stocks, while others notice that real estate prompts their drive and determination. In others, engagement might be achieved through a combination of investment strategies.
The point is that there is no perfect, one-size-fits-all solution to investing. It just doesn't exist. The connection between you and your investments should be thought of as a long-term, personal relationship. You wouldn't pick a spouse based on someone else's preferences, nor should you pick an investment strategy.
You are unique from everyone around you. Be true to yourself (embrace those quirks!) and welcome an investment plan that matches your unique style. If you don't, you will very likely find yourself perpetually stressed, jumping in-and-out of investment platforms, and earning sub-par returns on your hard-earned savings. Don't let this happen. Take the time to find the investment strategy that fits you. Only then will you place yourself in proper position to achieve lucrative and sustainable returns on both your money and your peace of mind.
Have you found your proper investment match? Please share. There is no wrong answer! Are you still struggling to find your monetary motivator? Feel free to book an appointment where we can get you aligned. I am always happy to help!