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"It's not what a man don't know that makes him a fool, but what he does know that ain't so."
- Josh Billings, 19th century Amertican humorist
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You Need to Change
The constant drum beat to "do something" or "change something" in your investment portfolio is central to the traditional brokerage firm sales pitch. Of course, in order to fill 24 hours of time , the media unwittingly support this false proposition by having endless segments on which stocks/funds to buy (or sell) today.
All of this runs directly counter to our evidence based long term investment approach. More tinkering, more trading, more in and out generate more costs (commissions) and taxes (in taxable portfolios). No wonder that every major study looking at this topic concludes that the more you trade, the lower your returns.
Instead of relying on this failed approach it is far better to step back and consider the purpose for the investments in the first instance and then determine what level of returns might be needed. Assuming the purpose is something several years or more into the future, you then have license to ignore the day to day urge to change your portfolio. Good investor behavior generally will yield good investment results.
Our unique wealth management process, Wealth Rx® is focused on protecting family and lifestyle for the long term. Simply put, our structure represents a better way to invest. We appreciate the opportunity to talk with friends and family who can benefit from working with us. Thank you for keeping us in mind.
- James E. Wilson, CFP® My Blog
 In Barriers to Financial Security, we discuss the very real cost of investor behavior. Previous chapters introduced the series and the importance of investor behavior. The second and third chapters provide a historical perspective for investors. Chapter five is available here. |
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WealthRx® is J.E. Wilson's unique wealth management process, designed with successful physicians in mind. Learn more. Contact 
