Today’s Practical Planning Tip will CONCLUDE our conversation on my firm’s outlook for the New Year.
Today we will discuss how in 2024 investors should Avoid “exciting” investments: There is a tendency for people to make investment decisions based on what they deem to be exciting. This is the wrong approach. Excitement is what drives bubbles and the latest investment fad du jour. If you want to increase your probability of financial success, focus on developing a portfolio that is based on your goals, time horizon, and risk tolerance. Then use boring plain vanilla investments to implement the strategy. Whenever someone presents me with an “exciting” opportunity, I always think about the quote by the legendary economist Paul Samuelson who said “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
The recipe for financial success in the New Year is to have a disciplined investing process, ignore the noise, avoid any major missteps, and to stay the course. Now that you know what mistakes to avoid, you should be well positioned for financially successful 2024!