One of my goals as an Investor Coach is to build a “community” of like minded investors.
This community is (we’ve already begun) a group of investors committed to becoming Seasoned Investors with Peace of Mind as a defining characteristic. The following is a short (non-exhaustive) list of what I am talking about.
Seasoned Investors are focused on . . .
1. Eliminating destructive patterns and behaviors that many investors fall prey to – many are jumping in and out of the market, enticed by the speculative and short lived returns in “Gold” or the “good track record” of a mutual fund manager. This kind of behavior results in returns that are below inflation over time. DALBAR has proven this year after year. Enough is enough, we need to get off that train! Stop chasing returns and enjoy the returns that come to you through the free market.
2. Reducing the costs of investing – I’m looking for investors who are committed to keeping more of their own returns. At the end of 2008, while my client roster was increasing and my clients were calmly rebalancing their portfolios and making new cash investments; the large wirehouses (Fidelity, TIAA CREF, American Funds, Merryll Lynch to name a few) were watching their money under management decline at an almost deafening pace. The one discernable strategy they employed during the last three months of 2008 was to buy and sell stocks within their client’s funds at a rate that had never been seen (actively traded funds averaged OVER 200% turnover for the year!). This frantic buying and selling created income for THEM and a net loss of return for their investors. The Mutual Fund companies were able to mitigate their losses and create income during a time when “no one what looking”. They will tell you that they were buying and selling to capitalize on the inefficiencies in the turbulent market and create return. The results tell a different story in most cases. This kind of activity should be criminal.
3. Learning about how to become a seasoned investor – When it comes to money – no one likes to be wrong in front of the whole class. However, an expert in any field will tell you that they are always and first a student of their area of expertise and second a teacher. I am looking for investors who want to spend a modest amount of time each month learning. “Know it alls” are likely not a good fit. Although I have learned a lot over the years – I am constantly putting myself infront of older, more seasoned and better read investors and investor coaches. I am first a student of my field and then I am your coach.
4. Helping others. I am looking for investors that are committed to knowing their purpose and who have a “for others” mindset. One of the best indicators of someone who is secure in their position is that they “give” rather than “hold on”. They have an “open hand” with respect their resources and their time. I am not saying that it is wrong to accumulate wealth – but I am saying that peace of mind is generally present along with this giving attitude and is most often missing where giving is not present.
I hope you will consider being a part of this community. Where as I can never promise anything about the future, I can tell you that you will have more peace about the unknowns that are coming if you do these things.