10,000+ mutual funds. 1,400+ ETFs. CDOs, MBSs, and MLPs…
Investing seems to be getting more and more complicated. But basic investing principles are just as important as ever.
Spend less than you make.
Start saving early.
Of course, those things are easier said than done. In fact, that’s why I named my recent educational seminar “Save Your Retirement 2.0: Why Investing is Simple but Not Easy.”
Here are the three main myths that are making investing for retirement so much harder for hard-working Americans today.
(1) The MYTH that Wall Street has all the answers.
Has your broker ever used terminology you’ve never heard of? Abstruse acronyms? Foreign concepts?
They fool you into believing that you need their expertise to guide you through the maze that they created.
Of course, they tell you that their advice is always in your best interest…but it rarely is.
- The MYTH that price equals value.
The professors at America’s most prestigious business schools?
They’re actually intellectual morons spouting nonsense from their ivory towers.
Their favorite falsehood is the one that says price equals value.
Actually, price paid determines your return. Ever bought at a discount to value and sold high? Bought high and sold low? Then you’ve already figured this out.
- The MYTH that investors make rational decisions.
Ben Graham, the Father of Value Investing and Security Analysis, said, “The investor’s chief problem—and even his worst enemy—is likely to be himself.” Behavioral psychologist Dan Ariely agrees, calling humans “predictably irrational.”
You see the stock market go up in flames and sell your stocks, regardless of price. Then, when everyone is euphoric, you jump back in—again, regardless of price.
In neither of those situations are you considering real value. And that’s what’s so dangerous.
How to Make Investing A Little Easier
Overcoming your emotional reactions to investing is hard enough without added intimidation from Wall Street and academia. It’s more important than ever to not only learn basic investing principles but also hold yourself accountable for following them.
So put yourself on the right track and schedule a complimentary financial check-up with me today. And keep an eye on my YouTube channel to watch the video from my recent educational seminar that explains why investing is simple but not easy.